MCLENNAN COUNTY, Texas — Midway Independent School District is giving voters the chance to increase staff pay and shrink its debt through a voter-approval tax rate election (VATRE.)
Superintendent Dr. Chris Allen said this came about when the board started looking at the budget and realized the revenue that they were generating wasn't going to meet the district's needs.
So how did Midway ISD get to this point?
The school board approved an 18.5-cent decrease from last year's tax rate, which included a three cent drop in the interest and sinking (I&S) tax rate. However, to still get more money coming in to help with district needs -- Midway ISD wants to shift the three cents to the maintenance and operations (M&O) tax rate.
This would even out the shares from the locals and what the state would have to provide the district. The way that state funding is set up for public education, the M&O generates money that would never be subject to recapture, according to Dr. Allen.
"If the VATRE passes, [it will]compel the state to kick in more state aid to fund public schools in Midway ISD," said Dr. Allen. "Local taxes go down and it generates more money coming out of the state -- money that they've already collected, but just not spending on Midway. This would force them basically to do that."
Midway ISD is legally required to put a move like this in an election and leave it up to the voters.
Dr. Allen said if the VATRE is passed it would generate $3.75 million in revenue for the greatest need; staff retention and recruitment.
"The people who work for the district would be able to maintain a higher rate of compensation," Dr. Allen explained. "It would also allow us to continue to pay for the security personnel that we brought on and keep that security that we're providing for our campuses in a program that is sustainable over time."
The verbiage of this proposition on the ballot may seem confusing because it's not what you would typically see.
On the ballot it will state, "a rate that will result in a decrease of 3.96 percent in maintenance and operations tax revenue for the district for the current year as compared to the preceding year, which is a decrease of $2,429,940." What this means is if you vote "for" this proposition it means Midway ISD will receive an increase in state funding.
If you vote "against" the proposition, Midway ISD will not receive an increase in state funding and they will have to find other ways to address the district's debt.
"If they vote no, what they're saying is that the district would not get that $3.75 million dollars, but would instead be about $5.5 million in debt," Dr. Allen said.
Whether the VATRE passes or not, Dr. Allen says the taxpayers in Midway ISD are going to save somewhere between $1,200 and $1,500 a year in what they're paying in property taxes.
Click here to learn more about Midway ISD's VATRE.
Early voting is Oct. 23 through Nov. 3.
Election Day is Nov. 7.