Reprint from the Progress Times - August 3, 2007
©Progress Times 200 - All Rights Reserved

Mission CISD tax rate expected to drop 27 cents

By Jim Brunson and Kathy Olivarez

Mission Consolidated School District is considering adopting a tax rate of $1.18 per $100 valuation for 2007-08. While that is a 27-cent drop from last year’s rate of $1.457, it represents a four-cent increase over the state-mandated 66.67 percent tax rate reduction.

In the last legislative session, the Texas legislature passed a sweeping business tax designed to reduce property taxes, which have climbed steadily for years, earning Texas the distinction of being among the states with the highest property taxes in the nation.

The new legislation requires Texas school districts to reduce the Maintenance and Operations portion of their tax rate by 66.67 percent. However, the legislation also allows districts to raise the reduced rate as much as four cents. MCISD is likely to take advantage of the full four-cent increase, according to district sources. The rationale is the district stands to lose over $1 million in state revenues if the district does not increase the rate. The four-cent increase allows the district to maximize state funding.

Reduced property tax revenues for the district will be more than offset by increased state funding. While local revenues are projected to drop by $1.86 million state revenues are expected to increase nearly $8 million.

In addition to the four-cent "increase" in the Maintenance and Operations portion of the tax rate, the district plans to increase the Debt Service Fund tax rate by two cents, from 10 cents last year per $100 to 12 cents this year. The is the second two-cent hike in Debt Service taxes in as many years due to the $57 million bond issue passed in 2006. The bond election called for a seven-cent tax increase to be phased in over a three year period.

The district has prepared a preliminary budget for the 2007-08 school year. The proposed budgets, along with a proposed tax rate were reviewed by the district Finance Committee last week.

The district is considering an overall budget increase of $5.6 million. The proposed 2007-08 budget is just over $132 million, compared to last year’s budget of $126.7 million

Payroll is always the largest component in the school budget. Payroll cost for the upcoming year is projected to be $96 million, while contracted services will add another $8.8 million.

Instructional costs are estimated at $65.5 million and administration cost will be $10.9 million, which includes $6.1 million for campus-level administration such as principals and assistants.

Other major components in the budget include Food Service at $9.9 million, Plant Maintenance and Operations at $13.5 million and Debt Service at $8.6 million.

While the district’s Finance Committee went over the preliminary budget last week, a public hearing on the budget will be held in August – likely August 29. The board is expected to vote on adopting the budget the same day.