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Language: en

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On November 3, Eanes ISD residents can consider their overall tax rate and local control of revenues.

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While COVID-19 affects how we operate schools right now Eanes ISD must continue looking forward, the pandemic will someday be in our rearview mirror.

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But if we don't take the forecasted financial shortfalls seriously today serious budget was will be in our windshield tomorrow.

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Eanes ISD's tax rate has two parts that apply to the assessed evaluation of homes and businesses,

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the maintenance and operations or M&O rate is for staffing and operating schools and programs.

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In Eanes ISD, the current M&O rate is 99 cents per $100 of our property's assessed value.

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The interest and sinking or I&S rate is for constructing and equipping facilities and acquiring technology and new school buses.

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The current I&S rate is 14 cents per $100 of a property's assessed value.

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So the total tax rate when the M&O and I&S parts are combined is presently $1.13 cents per $100 of assessed value for residential and commercial properties.

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Texas allows school districts to access up to eight golden pennies in the M&O rate with voter approval.

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The revenue from golden pennies isn't recaptured by the state so the money stays in the local schools.

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The Penny Swap, also known as a voter approved tax rate election adds funds to the district's operating budget

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by swapping two cents from the district's I&S rate to the districts M&O tax rate.

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Under the school's finance system, the Eanes ISD tax rate will be compressed from $1.13 cents to $1.1164

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This election will not change the compressed tax rate, but it will allow the district to dedicate more of the money it collects the teachers and students.

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Approval by voters would move two cents from the I&S tax rate to the M&O rate, resulting in a $1.1164 overall tax rate after compression

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from the current rate of $1.13 cents.

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Swapping two golden pennies protects about $3.3 million more in locally controlled revenue every year from being recaptured by the state.

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Because Eanes ISD is responsibly retiring it's past bond debt and reducing interest payments, the school district can now afford a lower I&S rate,

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pay off its debts and still have enough capacity to finance future bond projects all without a tax rate increase.

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If the Penny Swap is not approved the school districts current tax rate will still be $1.1164

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but less revenues would be generated for Eanes ISD students, staff and schools.

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Voting for the proposition would protect approximately $3.3 million in new revenue from being recaptured by the state.

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When you head to vote, know that the required ballot language may be confusing.

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The language states approval will result in an increase of 1.8% and maintenance and operations tax revenue

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which may cause voters to only focus on an increase, and not recognize the tax rate compression or that $3.3 million stays locally.

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Remember the Penny Swap on November 3, keeping your tax rate even while locally controlling more money for students and staff.