Repost: I added "List of Data Needed for Setting Tax Rates" - js
School districts across the state are beginning the process of adopting budgets and tax rates for the 2014/2015 school year. The volume of data as well as the notification processes are extensive. As a result, I believe the public schools of Texas are the most transparent form of government that exist. Public school budgets and tax setting processes are governed by “Truth In Taxation”. According to the Comptroller’s website,

Truth-in-taxation is a concept embodied in the Texas Constitution and the Tax Code that requires local taxing units to make taxpayers aware of tax rate proposals and to afford taxpayers the opportunity to roll back or limit tax increases.

The requirements for publishing as well as the procedure for calculating tax rates for the last several years have been communicated in a booklet titled, “Guide for Setting School District Tax Rates”. However, at a recent conference it, was announced that the manuals would no longer be available. Instead, all the needed information is posted on the Comptroller’s website, Window on State Government, through a series of links and online videos (which will be available in July 2014) at Truth In Taxation: Tax Rate Adoption.

Administrators should carefully read the information from the Comptroller in the new format by following the links. Those who are new to this process should find a source of guidance because this procedure is disjointed and difficult to follow. In addition, the vocabulary is not always consistent enough to communicate clearly. I illustrate this with a clip attempting to explain Rollback Tax Rate

School districts add four cents to the lesser of the compressed operating tax rate or the effective M&O rate to get their highest M&O rate. They then add the debt service rate to get the final rollback tax rate. To calculate the effective M&O rate, school districts should consult the Texas Education Agency or their Regional Education Service Center.

I offer you the following additional resources to assist in this process.

TASB Legal Services has excellent up-to-date documents for guidance:

1. Adoption of Budget and Tax Rates - Traditional Methos
2. Adoption of Budgetd and Tax Rates - Early Tax Rate Adoption
3. 2014 Tax Ratification Election Information and Timelines
4. List of Data Needed for setting School District Tax Rates (Source:actweb.acttax.com)

ESC 13 provides the State Funding Template which is used for calculating the effective maintenance and operations rates.

Reading all the links in Truth In Taxation, the TASB publications, and completing the State Funding Templates combined with reading my posts for the next few days will be a great introduction. - js - webmaster@texasisd.com