Waxahachie ISD TRE Election Information
On Monday, June 30, 2014, the Waxahachie ISD Board of Trustees voted to call a Tax Ratification Election (TRE) in order to acquire additional state aid for the district. The election called for a "tax swap" which decreased the district's Interest and Sinking (I&S) tax rate by thirteen cents and raised the Maintenance and Operations (M&O) tax rate by thirteen cents. The resulting tax rate of $1.4289 is the same tax rate that has been in effect since the 2010-2011 school year. Overall, the school district tax rate remains the same for the Waxahachie community.
Raising the M&O rate allowed the district to acquire additional monies from the state. Simply put, the higher a district's M&O tax rate, the more monies a district can receive from the State of Texas. This funding formula was established by the Texas Legislature and allows districts to equalize their wealth with the wealth levels of Austin ISD and Dallas ISD. While the district increased the M&O tax rate, Waxahachie taxpayers did not see an increase in their overall tax rate because the district lowered the I&S tax rate by the same amount.
The voters allowed the district to make these changes via the election on Saturday, September 6, 2014. The tax rate remains the same at $1.4289 for Waxahachie taxpayers.
Impact of Proposed Tax Rate
To view the impact of the proposed tax rate, click here.
A Message from Dr. Jeremy Glenn, Superintendent
Tax Swap Will Not Increase School Taxes: July 7, 2014
KBEC Radio Interview - July 19, 2014
Click Here for the Questions Posed by Listeners during the Radio Interview.
Frequently Asked Questions
Why do you need additional Funding? The district needs additional funding in order to enhance the educational opportunities of our students, remain competitive in teacher compensation, and provide financial flexibility for the future. If the district is unable to restructure its tax rate, it misses out on additional monies that it could be receiving from the state.
What is being done with the additional funding? The district is using the funds to increase teachers' salaries to allow us to be more competitive with surrounding districts. By increasing teacher pay, the district will be able to retain its highly qualified teachers and attract new ones. Additionally, the district is adding eight additional security officers. Lastly, funds are being saved to provide financial flexibility and stability in the future.
How much additional funding does the district think it will receive from the state? Currently, the district is conservatively estimating that it will receive an additional $1.5M dollars from the state. The district will spend approximately half on the projects listed above and the remaining half will be saved.
election passes or fails, the tax rate will remain $1.4289 for Waxahachie tax payers.
What is an I&S tax rate? The Interest and Sinking, or I&S tax rate, is the money used by the district that is legally restricted to be used for the retirement of its debt obligations. In previous years, Waxahachie voters have approved bonds to fund building projects. The payment of these projects comes from the I&S tax rate. I&S monies cannot be used for M&O expenditures (i.e. the "daily bills").
How did adjusting the tax rates increase state funding? With the state funding formulas currently in place, the district will receive additional revenue because a higher M&O tax rate has been adopted. For more information regarding the State's funding formula, contact the Waxahachie ISD Business Office at 972.923.4631.
What happens when you decrease the I&S tax rate? The I&S tax rate is what the district uses to pay their debt obligations, i.e. building projects, etc. Lowering the I&S tax rate will not prevent the district from meeting its debt obligations nor will it extend the repayment of these obligations. This will be achieved by budgeting monies from the M&O budget to repay the debt obligations. This will be possible because of the additional state funding the district will receive. For a further detailed explanation from Dr. Glenn, WISD Superintendent, click here.