Week 3, Part 4

The Coalition to Invest in Texas Schools glossary (2010) defines the Maintenance and Operations (M&O) tax rate as a local school district property tax rate that raises revenue to operate and maintain the district’s schools.  In addition, the M&O tax rate is subject to a statutory maximum of $1.50 per $100 of taxable value.  M & O funds include property tax collections, state funding and some federal. According to our district’s business manager, we also have other local funds such as interest income, tuition, rent, miscellaneous, athletic revenues.

The Port Neches-Groves M&O amount was $1.50 from 2001 through 2006 but has remained at $1.04 since the 2007-2008 school year.  According to our district Business Manager, this reduction in the district’s M&O rate was the result of an attempt by the legislature to lower property taxes through a compressed tax rate.  For the 2010-2011 school year, proposed local revenue is $30,547,229 and proposed state revenue is $3,825,762 for a total proposed revenue totaling $34,372,991. Ninety-one percent of the proposed local revenue comes from property taxes while the other nine percent of proposed local revenue comes from a variety of sources including summer school tuition/fees, interest temporary investments, foreign trade zone, H.B. 1200, and revenue from athletic activities. Payroll costs at PN-GISD for 2010-2011 represent 81.6% of the total budget.  The remaining 18.4% goes to contracted services, supplies and materials, other operating expenses, and capital outlay. The PN-GISD 2010-2011 budget listed proposed total expenditures at $37,534,266 which exceeds projected revenues by $3,161,275, requiring the district to dip into its fund balance for 2010-2011. In light of our state’s budget shortfall and a bleak future for Texas school finance, this type of spending from the fund balance cannot continue.  For the 2010-2011 school year, PN-GISD designated $21,116,299 or 52% of its total budget for instructional purposes. 

  

REFERENCES

Coalition to Invest in Texas Schools (2010). School funding 101 - glossary. Retrieved January 30, 2010, from http://www.investintexasschools.org/schoolfunding/glossary.php.