Salado ISD Trustees have proposed cutting the tax rate by more than five  cents from the current $1.2755 to $1.2238 for the 2016-17 school year, counting on student enrollment growth of just over eight percent, and growth in the property values.

The board voted unanimously for the proposed tax cut. The final vote on the tax rate will come following public hearings on the proposed budget and the proposed tax rate at 6 p.m. Aug. 31 at the Salado Civic Center.

Trustees also voted unanimously to propose a general operating budget of $14.1 million, an increase of almost $900,000 over last year’s $13.2 million operating budget.

The operating budget is funded through $8.2 million in local funds, chiefly the $1.04 per $100 valuation local property tax. Salado ISD is at the state ceiling for its M&O tax without a Tax Ratification Election. Only three school districts in Bell County have been successful in their TREs: Temple with an M&O tax rate of $1.12 and Belton and Florence (with a portion of its district lying within Bell County) both have the state maximum M&O tax rate of $1.17.

Of the 10 school districts in Bell County Appraisal District (BellCAD), Salado ISD has the third lowest property tax rate. Killeen, which received a great deal of federal funds through Impact Aid and state funds as a property poor school district, has an overall tax rate of $1.128 per $100 valuation. Bartlett, which has a debt service tax rate of just $0.11468, has an overall property tax of $1.15468.

The Salado operating budget is driven mostly by local revenues, but includes $5.56 million in state revenues, an increase of more than $800,000 over last year’s budget. Much of this is driven by the number of transfer students that have come into the district in the past two years.

A total of $14.1 million in operating revenues is offset by an equal amount of operating expenses in the proposed budget.

Instruction expenditures increase by almost 10 percent in the proposed budget to $7.6 million from last year’s $7.0 million. Other notable increases in the operating budget include Co-curricular/extra-curricular, which increase to $1.06 million from last year’s $907,855, an increase of more than 15 percent.

General administration also increased by more than double digits. Administration costs jump for $502,449 in 2015-16 to the proposed amount of $585,895.

A new line item on the budget is Data processing services, which will cost the district $188,075 in 2016-17.

Some expense areas decrease in the proposed budget. The budget slashes instructional services from $356,239 to $208,820. It cuts student transportation by about five percent from $566,961 to $539,249.

It also cuts plant maintenance and operations from $1.6 million to $1.48 million, almost 10 percent. Student transportation costs are being cut because the district is adding only one large bus to its fleet this year. Last year, it added a large bus and a small bus to the fleet.

Plant maintenance costs are being lowered this year because the district paid for a new VOIP phone system in this year’s budget.

Overall, the M&O budget increases expenses from $13.2 million to $14.1 million.

Before voting in favor of the proposed budget, trustees questioned superintendent Michael Novotny and finance director Brandy Stanford on the impact of the proposed 8.2 percent increase in student enrolled and weighted average daily attendance (WADA).

Administrators assured trustees that if enrollment and added transfer students do not meet budget that there were contingencies built in to meet the needs of the district.

Trustees discussed the proposed tax rate, which was built into the budget at $1.2604, at length before agreeing on lowering the proposed tax rate to $1.2238 per $100 valuation. When the board formally adopts the budget and sets the tax rate on Aug. 31 it can go lower than the proposed rate but cannot go higher than the proposed tax rate without issuing another public notice and hearing.

Historical Budget Comparisons

2016-17 Salado ISD Proposed Budget and historical comparison

2014-15 Adopted versus Amended Final SISD Budgets

2013-14 Adopted versus Amended Final SISD Budgets

2012-13 Adopted versus Amended FInal SISD Budget