GISD considers need and impact with Prop A proposal
School Budgets Made Up Of Two Main Parts
Why a Bond Now?
It’s been 18 years since Graham ISD voters approved a school bond election. A recent needs assessment revealed that many GISD systems have reached the end of their life cycle. As a result, projects have been identified as priorities in the Long-Range Facility Plan approved by the Board of Trustees on August 11. This plan, however, identifies $165 million in projects, so the Facility Planning Committee prioritized the projects into Must Do/Need To Do lists.
$60 Million Focused on Priority Needs
The proposed bond is for $60 million and addresses some of the committee’s top priorities while keeping the impact on the local taxpayer in mind as well.
The projects would cost the average GISD taxpayer less than $3 more a month.
Senior Citizens 65 years and older have their school taxes frozen.
Two Parts of the School Tax Rate
School budgets and tax rates are made up primarily of two parts:
Maintenance & Operations (M&O)
Supports the district’s day-to-day operating expenses, including salaries, utilities, fuel and instructional costs.
Interest & Sinking (I&S)
Also known as debt service, I&S is used to repay voter-approved bonds for major facility and capital projects.
Understanding the Tax Impact
The Graham ISD local tax rate has decreased nearly 36 cents in the past six years due to changes in state tax laws. Approval of the proposition would raise the local tax rate five cents which equates to less than $3 more each month for the average GISD taxpayer with a Homestead Exemption. Graham ISD regularly retires past debts and pays off some debt early.
Who Sets the Tax Rate?
The district does not set property values, but it does adopt an annual tax rate. The Texas Education Agency determines the Maintenance & Operations tax rate, while the Graham ISD Board of Trustees sets the Interest & Sinking tax rate.
Why Use Bonds for Facility Projects?
Most districts do not receive enough state funding to pay for new schools or large capital improvement projects. Instead, they ask voters to consider granting the district permission to borrow the money to pay for the projects, paying back the costs plus interest over time. Districts who do not have access to voter-approved bond funding must utilize existing operating funds to help cover projects. The operating budget is primarily used to help recruit, reward and retain quality teachers and support staff.