Published: June 18, 2008 10:48 am            

Property tax revenue up, state aid for schools down

By Raymond Billy

rbilly@jacksonvilleprogress.com



To view the slid show presented at the JISD meeting, go to http://www.jisd.org/finpres061608.htm



Not only will the Jacksonville Independent School District not see an increase in overall funding due to rising property values, but school officials say funding will decrease this fall.

Countywide, close to 30,000 residents will see their homestead values increase by $1,000 or more this year according to figures released to the Daily Progress by the Cherokee County Appraisal District.

But, anyone who thinks rising property values will help JISD is mistaken. Lindy Finley, JISD assistant superintendent of finance and operations, sought to clarify the reality of the situation during Monday’s meeting of the Board of Trustees.

“I think the biggest thing we’re trying to communicate is in the big picture, the way the state funding mechanism is set up, we do get more money from the property taxes going up, but the state is sending us less. Everything we’re gaining in property tax increases is being offset by state aid that we don’t get,” Finley said.

Texas’ current method of funding school districts is relatively new. Lawmakers created the system in 2006 as the result of a State Supreme Court ruling that held the former system of school financing to be unconstitutional.

The funding system is set up so that districts receive funding on a dollars-per-child basis. The more students who are enrolled in a district, the more money a district receives. JISD will take in less money this coming school year because its year-end enrollment dropped by 149 students — from 4,889 in May 2007 to 4,740 in May 2008. That has created a precarious situation for JISD and school districts across the state because they are faced with the prospect of making budget cuts although there is very little fat to trim.

“The only way to significantly decrease expenditures is to lose some personnel positions,” Finley said. “Obviously, we can’t cut utilities or fuel — those fixed costs are going to go up every year. If the state sets your revenue at one level while costs keep going up, the only thing you can do is cut personnel.”

But, cutting personnel is an option JISD refuses to consider because of the likelihood that enrollment might increase once again. If the district was to cut its faculty, it would be faced with growing student-to-teacher ratios.

School officials have been speaking to lawmakers, notably state Rep. Chuck Hopson and state Sen. Robert Nichols, both of whom reside in Jacksonville. Finley said JISD and other school districts have been trying to get their congressmen to take action in Austin.

“What we say to them is ‘Do you guys realize what is happening?’ A lot of times, they don’t. They don’t really see that even when we get more property tax money, the net impact was a decrease in funding from the state.” Finley said.

The Legislature will convene again in January 2009. If lawmakers don’t address the problem at that time, Finley said that many school districts will consider calling rollback elections as an alternative to personnel cuts. If improved by voters, school systems would be allowed to increase property taxes to finance its maintenance and operations. In that instance, the $1.04 per $100 valuation could be increased to as much as $1.17.

“As districts hit the wall — meaning they’ve gotten all the money they’re going to get from property taxes and state funds — costs are rising and we have to increase our revenue. A rollback election is one option for districts,” Finley said. “This district is not going to have a rollback election this coming school year. But, you’ll see some surrounding districts that have already done it or are planning to do it.”

Finley said she — along with just about every other school district finance director across the state — hopes that the funding system is changed whereby state funding doesn’t decrease as property tax revenue increases.

“The entity that is getting the benefit of the rising property values is the state of Texas, because they’re not having to pay out as much to school districts under those circumstances,” she said.

In action items considered at the board meeting on Monday, trustees approved:

• stipends for secondary math teachers due to teacher availability shortages in the amount of $5,000 per teacher at Jacksonville High School and $2,500 per teacher at Jacksonville Middle School;

• an agreement with Bill McRae Ford regarding vehicles for drivers’ education program;

• purchase and repair of the metal walkway covers at the JHS, West Side Elementary, and Joe Wright Elementary campuses;

• the 2008-2009 Student Code of Conduct

• an application for a T.E.A. waiver for a modified schedule for TAKS testing days and early release days;

• the consent agenda; and

• the 2008-2009 superintendents salary.

The JISD Board of Trustees regularly meets at 6:30 p.m. the third Monday of each month at the JISD Administration Building, 1547 Pine St.

        

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