TownTalk Radio received the following news from Plains ISD Superintendent, Dr. Stephanie Howard.
As you may recall, in May we provided information related to the 2016-2017 Plains ISD budget preparations. Now that we have received verified property value, I want to provide an update. Plains ISD began working on the 2016-2017 budget at the Board Workshop in mid-May. With a July 1 start of the fiscal year, the district had a short amount of time to approve a budget at a time when values were projected to drop another 27%. Estimated values for 2016 were $542,309,292. These numbers were down from $753,046,573 in 2015 and $1,171,967,708 in 2014. Certified values came in $53,455,967 less than the estimated values at $488,853,325. These certified values are 36% less than the values in 2015 and 59% less than the $1,171,967,708 in 2014. With the anticipation of reductions in values and the ASATR cliff that I wrote about in May, the district has reduced 9 positions (last school year and this coming school year). The district will continue to look for ways to be efficient while maintaining high expectations and excellent facilities and resources for our students and staff.
On the interest and sinking (bond/debt) side, the additional reduction in values poses a bigger challenge for the district. With bond payments due in August 2016, February 2017 and August 2017, when we set our 2016 tax rate we have to consider bringing in enough in tax collections to make all three payments as the August 2017 payment is due before 2017 taxes begin to flow into the district. The budget that was passed in June 2016 was based on estimated values and had the district using $245,581 from general fund balance (not I & S fund balance) to make the bond payments. With further reductions in certified values, that number would increase to approximately $612,949.
The district realizes that the reduced oil prices have taken a toll on all our taxing entities, our farmers, ranchers, and our local business owners. We will work diligently to consider the impact in all areas as we work through the budget process and the adoption of 2016 tax rates at our August 8th board meeting. Another challenge we are confronted with is the loss of ASATR (Additional State Aid for Tax Reduction) September 2017, which Plains ISD has been receiving since the Texas Legislature passed HB 1 in 2006 reducing property tax rates by one-third. Through this “target revenue,” schools were guaranteed the same per-WADA (weighted average daily attendance) funding level, despite the loss of revenue from local property taxes. In 2011, the State made dramatic cuts to public education funding, and applied a percentage reduction to expect to receive approximately $2.2 million in ASATR revenue from the State. With all that said, 2017-2018 will pose another challenge for Plains ISD and many districts across the state. I have been working with our Small Rural Schools Finance Coalition, led by Mike Motheral, on approaches to preparing for the ASATR cliff. In addition, I have had conversations with Representative Ken King and Senator Kel Seliger to ensure they understand the impact of the ASATR cliff on Plains ISD.
We appreciate the ongoing support of the community. Our students, faculty, and staff are fortunate to be in a community that is rich in tradition. If you have any questions, you can reach me at (806)456-1300 or via email at showered@plainsisd.net.
Sincerely, Stephanie Howard, Ed.D.
