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The Voice of Reason: Taxpayers must approve property tax increase in EPISD’s Ratification Election

14 June 2010 2 Comments

story by Chris Canales, editor in chief

If taxpayers do not pass the Tax Ratification Election, the El Paso Independent School District is in trouble.  As it is, the district is in a hole, and not due to mismanagement of funds, as many vocal yet misinformed members of the community have suggested.

Some concerned citizens, including State Senator Eliot Shapleigh, have recently voiced concerns about inconsistencies in the number of TAKS testers at Bowie High School and have, as a result, called on voters to defeat the Ratification Election. I do not know if any wrongdoing occurred within the leadership of EPISD and Bowie High School, but even if the numbers were purposely altered, it does not change the fact that the additional funds are vital to the proper education of El Paso’s youth.

Simply put, the district is expanding beyond its means, far too rapidly for even the best functioning organization to keep up with. Without additional funds, the EPISD will be forced to cut several vital programs and fire many teachers at campuses across the city. This cannot be allowed to happen; voters must pass the TRE.

The revenue for a school district primarily comes from the taxes that are levied on the homeowners. If the value of your home goes up, that means you have to pay a little bit more. You would think that the district would get more of that money, but the problem is that the state reduces the district’s share accordingly. Thus, the district has been operating on the same amount of money for the past four years while inflation has raised the prices of goods and services.

A Tax Ratification Election is one of two sources for new funding for Texas public schools under House Bill 1, which established a targeted income for schools based on average daily attendance when it was passed in the 2005/2006 session. Other than a TRE, the only way schools can increase the funding they receive from the state is to increase attendance figures, which are already at the upper periphery of reasonable figures in EPISD.

In a TRE, the district must request an additional one-time tax rate increase of no more than 13 cents per $100 of assessed property value.  If the community approves this one-time increase, the state match the increase and will continue the new level of yearly funding for the next ten years. Thus, the district will realize tenfold the amount of the initial contribution over the next decade. If the TRE is passed, the district will take in $17.5 million from local property taxes and an additional $19.3 million from the state, a rate a little bit better than a one-for-one match. The community would provide over 47% of the TRE funding and then the state would provide about 52%.

Opponents of the TRE argue that EPISD is going to be receiving increased funds over the next several years as the number of students in the district increases. It is true that EPISD will see more students coming in due to the expansion of Fort Bliss, in addition to other students coming in to our community, but an increase in student population requires more teachers, more equipment and more supplies. The additional money will only fund the basic necessities of those students. It will not fund any additional increases that the district needs to implement additional programs.

Those opposed to the increase also argue that the district already received an increase in funds when the EPISD/Ft. Bliss Bond passed in 2007, giving the district about $230 million.  Many say the district mismanaged these funds. This assertion simply is not true. Of the $230 million, $227.4 million was used to build new schools and make improvements to existing campuses. The other $2.6 million was used to for administrative costs and cost associated with the issuing of the bond. The 2007 Bond was requested because the EPISD needed immediate funding, and the money the district was given was used for pressing projects.

Since 2006, EPISD has cut $29 million off of its budget. Increasing demands from the state and increased operating costs have made it impossible to operate on the current budget, and the district has no room to cut any more. If the TRE does not pass, drastic measures will be necessary, including firing hundreds of teachers across the city. While a property tax increase may be an inconvenience, the TRE must pass in order to maintain the high quality of El Paso schools and ensure a future generation of well-educated El Pasoans.

2 Comments »

  • Outside Observer said:

    What research did you do? The question needs to be asked, why did El Paso even build schools in 2006 when the student population between 1993-94 and 2005-2006 decreased by 2.35% (from 64,141 to 62,635) and 1993-94 to 08-09 was a decrease of 3.23%. So why did El Paso build new schools, when the district population decreased?

    All other industries have the same issues of increasing overhead, but none have the absolute forecasting models of what will be the revenue. For a school district to pass a deficit budget while going into a year where revenue is known is inexcusable.

    According to the budget, the expenditures have increased by over 3% (3.12), yet student population has only increased by less than 1% (0.41%). So what accounts for this increase, it obviously isn’t the increase in students.

    This is not the time to pass a Tax increase on citizens. See this headline “El Paso’s income growth outpaces nation, but city still below average” by searching google. So you think it is wise to raise taxes on a group of people whose per capita income is $27,944 which is about $14,000 less than the starting salary of a school teacher in the district, arguably someone just out of college with no work experience. That means that there are several people below that income range of 27K to keep that income range down. Those people will be heavily effected in this economy by any tax increase. The only way to control deficit spending these days is not by increasing taxes, but by cutting spending, and cutting spending where it hurts. And no district should go for a tax ratification election until they have shown their constituents that those cuts have been done first. And the $29 million already cut, probably had more to do with the compression of the tax rate then actual spending cuts.

  • Concerned Reader said:

    El Paso does not need higher taxes!

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