The Austin School Board on Monday called an election to raise property taxes by 9.1 cents to fund a $17.8 million compensation package for district employees and to offset the district’s massive $99 million budget deficit.
Voters will be asked to approve a tax increase in the Nov. 5 election that could add $41 million to the district’s $1.2 billion budget at a time when officials are grappling with how to cut $78 million in spending over the next two years and school districts across the state are struggling with budget problems.
The board agreed to call new elections. Eight members voted in favor, only Vice President Kevin Foster was against the measure.
The proposed tax rate of 95.05 cents per $100 of value is also 9.1 cents higher than the district’s 2023-24 tax rate of 85.95 cents per $100 of value and would cost the average Austin homeowner an additional $420 annually.
Although the tax increase, if passed, would raise an additional $171 million, Austin schools would keep only $41 million — 24 percent — of it. The rest of the money would go into state coffers and be redistributed to other Texas schools through a program called Recapture.
School districts receive state funds per pupil, and districts that generate more revenue than the per pupil amount set by the state must pay the extra money to the state. These funds are then directed to districts that do not generate enough property tax revenue to meet their needs set by the state.
For years, the Austin School District has spent nearly half of its property tax revenue on reclamation.
Early voting begins on October 21. Election Day is November 5.
