Proposition A VATRE 2023 - Round Rock ISD

Frequently Asked Questions

Proposition A Page

What is a voter- approval tax ratification election (VATRE)?
Prop A, a Voter Approval Tax Rate Election (VATRE), is a special election called by a School District’s Board of Trustees, asking voters to approve an increase above the $0.6910 maintenance and operations tax rate. Round Rock ISD has decreased its maintenance and operations tax rate every year since 2009 to remain financially responsible to taxpayers.

Why does the ballot state that the District will be increasing its maintenance and operations tax revenue this year by $0?
The Texas Tax Code provides mandatory ballot language for a VATRE. The statutorily required ballot language assumes that a VATRE will increase the amount of maintenance and operations tax revenue in this year as compared to last year. Under this statute, the District is not permitted to modify this ballot language to state that its maintenance and operations tax revenue will be decreasing from last year. Assuming the VATRE passes, the District will actually generate approximately $65.7M less in maintenance and operations tax this year as compared to last year. Since there is no increase but rather a decrease when compared to last year’s tax revenue, the ballot will state that it is increasing its maintenance and operations tax revenue by $0 instead of a negative $65.7M.

What is the impact on the proposed tax rate?
Even if the three cent increase passes, the District’s property tax rate will go down due to state approved homeowner tax reductions and homestead allowance increases. If approved, the tax rate would be $0.9190 per $100 taxable value This is a decrease of 14.36 cents from last year’s tax rate.
If Prop A is approved, could the State recapture the money to give to other Texas school districts?
No. If voters approve Prop A, 100 percent of the funds will stay local to our District for staff compensation.

Does everyone who works for Round Rock ISD receive a 3% pay increase?
All permanent employees will receive a 3% pay increase, except guest educators. Paying staff salaries makeup 85% of our District’s operations budget, and 88% of the District’s staff is campus-based.

How will Prop A impact a homeowner’s school taxes?
Due to Legislative action, property tax bills in Round Rock ISD are expected to decrease by $887 next year on a $550,000 home with a homestead exemption. The approval of Prop A would offset the decrease on a $550,000 home with a homestead exemption by $135 per year or $11.25 per month, and this homeowner could see a savings of $750.

If Prop A is approved, could the State recapture the money to give to other Texas school districts?
No. If voters approve Prop A, 100 percent of the funds will stay local to our District for staff compensation.

How will Prop A affect taxpayers who are over 65 or disabled?
Typically, property taxes for citizens 65 years or older—or those who are disabled—are not affected by a rate increase. As Round Rock ISD’s tax rate would decrease if Prop A is approved, their tax rate would also go down if the appropriate homestead exemptions are filed with the County Appraisal District.

What other districts have passed an election like Prop A, also known as a VATRE?
Locally, districts like Leander ISD, Pflugerville ISD, Lake Travis ISD, and Eanes ISD have passed a VATRE in the past six years to help provide additional funds.

WHY Prop A?

What is guiding Round Rock ISD’s decision to pursue Prop A?
Many factors and months of study went into the decision to present Prop A to the Round Rock ISD Board of Trustees for approval. One of the major factors is to provide staff members with competitive salaries to recruit and retain quality staff. Currently, starting teacher salaries in Round Rock ISD are approximately $600 lower than average neighboring districts. Providing appropriate and market-competivie compensation helps attract and retain high quality teachers. Prop A would provide $19 million per year to give all staff members.

Why can’t Round Rock ISD provide the additional salary increase with the current budget?
Even with $25 million in budget reductions made during the past two years, there is not enough within the operations budget, which is dedicated to staff salaries and operational cost, to provide the additional increase to staff. This is due to many reasons including the expiration of federal funded programs, the Texas legislature’s decision not to increase the basic allotment amount per student, state mandates the District will have to allocate funds to meet, and rising operating costs due to inflation.

IMPACT OF PASSED PROP A

What will the increased funds from Prop A do?

Prop A, would inject an additional $19 million into the District’s operating fund. These funds would be used to provide an additional 3% general pay increase for all staff members on top of the guaranteed salary increases approved by the Board in May. If approved, the total general salary increase would be 6% for teachers and librarians and 5% for all other staff members.

IMPACT OF FAILED PROP A

What would be the impact if Prop A failed?

If Prop A is rejected by voters, the salary increases for teachers and librarians would revert to 3 percent, and 2 percent for all other staff members for the 2023-2024 school year and the budget deficit would increase to $33M.

SCHOOL TAXES & RATES

What makes up a school district’s tax rate?
Two tax rates combine to make a school tax rate. The first tax rate is the maintenance and operations (M&O) tax rate. Round Rock ISD’s operating tax rate is currently $0.7210 and is used to fund day-to-day operations such as payroll costs, utilities, and maintenance of schools and facilities.

The second part is the debt service tax rate, currently $0.1980. It may only be used to pay for district bonds that fund construction and one-time purchases such as technology, buses and equipment with a useful life of more than one year. The bonds that are funded by the debt service tax rate are much like the mortgage on a home, but in Round Rock ISD are paid back more quickly to reduce interest costs. ‘

The two rates combined make up the current Round Rock ISD tax rate of $0.9190, which is the lowest tax rate the District has had in 15 years.

An important note is that the $0.9190 tax rate depends on Prop A’s approval, which would be lower than the District’s $1.0626 tax rate for 2022-2023.

What is the operating tax rate of other districts in the area?

2023-24 TAX RATES

District
MCR
Additional Pennies
M & O Rate
Round Rock ISD
0.6410
0.08
0.7210
*pending VATRE
Pflugerville ISD
0.6192
0.17
0.7892
*pending VATRE
Hutto ISD
0.6192
0.1383
0.7575
adopted 8/24/23
Leander ISD
0.6387
0.14
0.7787
adopted 8/24/23
Austin ISD
0.6575
0.079
0.7365
proposed
Georgetown ISD
0.6192
0.08
0.6992
proposed 9/18/23
What comprises the Round Rock ISD’s Maintenance and Operations (M&O) budget?
A school district M&O budget (commonly called the operating budget) is comprised mostly of personnel. Approximately 88% of Round Rock ISD’s M&O budget is teacher and employee salaries. It is also used to cover utilities, and maintenance of schools and facilities.

TEXAS SCHOOL FUNDING & LOSS OF STATE FUNDS

My home value has risen so I am paying more school taxes. Doesn’t this mean Round Rock ISD has more operating funds?

Unfortunately, no. Increases in home values do cause a homeowner’s school taxes to rise, but the increases do not provide an ongoing benefit to the District’s operating budget. It actually has the opposite effect. As Round Rock ISD collects more money from local taxpayers due to increased property values, state operating funding for Round Rock ISD decreases. In fact, state officials have often used the benefit of additional local tax dollars generated in school districts like Round Rock ISD to fund other parts of the state budget unrelated to public education. This is often referred to at the state level as recapture or Robin Hood. This year alone, Round Rock ISD is estimated to send back $7.5 million to the state of Texas as part of recapture.

How much funding would Prop A generate?
The approval of Prop A would generate approximately $19 million for Round Rock ISD to be able to provide the additional salary increases for the 2023-2024 school year.

Would Round Rock ISD have to pay the state recapture on funds generated through an increased tax rate?
The funds generated through Prop A would not be subject to recapture.

FISCAL RESPONSIBILITY

How does Round Rock ISD’s total tax rate compare to other school districts in the area?

2023-24 TAX RATES

District
M&O Rate
I&S Rate
Total Tax Rate
Round Rock ISD
0.7210
0.1980
0.9190
*pending VATRE
Pflugerville ISD
0.7892
0.3200
1.1092
*pending VATRE
Hutto ISD
0.7575
0.4500
1.2075
adopted 8/24/23
Leander ISD
0.7787
0.3300
1.1087
adopted 8/24/23
Austin ISD
0.7365
0.1230
0.8595
proposed
Georgetown ISD
0.6992
0.3475
1.0467
proposed 9/18/23

What is Round Rock ISD’s current financial status?
The District is continually recognized for its fiscal responsibility. Round Rock ISD has maintained an AAA rating from Moody’s for the past 13 years and also maintains a AAA rating from Fitch, two of the nation’s top rating agencies. Such ratings are the highest possible ratings assigned to by Moody’s and Fitch.

In addition, the District has received the highest possible rating from the Texas Education Agency’s Financial Integrity Rating System of Texas for 19 of the last 20 years.

FUND BALANCE

Has Round Rock ISD worked to reduce the budget to make up for the operating shortfall?

In the last two years, Round Rock ISD has made over $25 million in budget cuts and continues to review non-campus positions before filling them.

Has Round Rock ISD considered using more of its fund balance to offset the operating shortfall?

Yes, for the 2023-2024 school year, Round Rock ISD is projected to use $24.7 of its fund balance to offset the operating shortfalls.

VOTING

When is the election?
Election Day is Tuesday, Nov. 7. Early voting is October 23 – November 3. The last day to register to vote in the election is Tuesday, Oct. 10. Photo identification is currently required for voting in person. For more information on voter registration, visit the state website.

I have more questions about Prop A. Where can I get more information?
For additional questions, please use the Prop A category on Let’s Talk to submit your question.

EARLY VOTING

Travis County
Days: Monday, Oct. 23 – Friday, Nov. 3
Hours: Monday - Saturday: 7 a.m. - 7 p.m., Sunday: 12 - 6 p.m.

Williamson County
Monday, Oct 23 – Saturday, Oct. 28, 8 a.m. – 6 p.m.
Sunday, Oct. 29, 12 – 6 p.m.
Monday, Oct. 30 – Friday, Nov. 3, 7 a.m. – 7 p.m.

Proposition A ballot

VOTING DAY

November 7

7 a.m. – 7 p.m.