Description: The article is about a brief explanation of state funding and how that impacts on education. It is presented by Kenneth Adix, CFO of Pflugerville ISD. He also gives explanation of differences between local tax and state tax.
My name is Kenneth Adix and I’m the CFO for Pflugerville ISD. I’d like to give you a brief explanation of state funding and how that impacts the twenty five thousand students that we educate each day, and impacts on the funding they receive, and ultimately on the taxes that you pay to support their education.
As you may know, state funding can get rather complicated, but I’m going to break it down specific to the taxes that you pay and how state funding works.
I’ll start by using this ruler as an example, because it is what the state is doing. The goal of the state trying to achieve is that for every child in the state[这句再修改下，两个is，并列的有问题，其中一个改成从句] regardless of where they live would be that they received this much funding.
This example would be that this ruler is fifty one point four inches tall. If every inch on this ruler was worth $100, that would mean that every child would receive five thousand, one hundred and forty dollars for their education.
That’s the goal that the state is trying to achieve regardless of whether they live in Pflugerville or Round Rock or anywhere in the state that toward their education, they’re going to be guaranteed this much money.
If their taxpayer of mother or father had to pay a dollar in tax on that first dollar of tax regardless of where they lived, their child would be entitled of this much money toward their education.That’s the promise now with which the state making and that is guaranteed.
The state doesn’t say I’m going to write the check for this full amount, because the understanding is that locally through your property tax, you can pay some of this based on your own local property tax payers, and what they pay is specific to Pflugerville.
This yardstick is the example of how much we can raise locally. It’s right at 36 inches, close to thirty six hundred dollars. That is what we can raise locally with $1 of tax rate.
With this amount being guaranteed by the state and being able to raise this much locally, the state is going to send us a check for the difference in that amount, that’s going to be the amount of the state payment.
The state is currently in special session and at this point there’s no intent to change the height of this ruler over the next two years. What that would mean is that from the 1516 school year two years ago all the way to the 1819 school year, the height of this ruler isn’t going to change, so the amount of funding that we’re receiving as Pflugerville ISD isn’t going to change, Even though currently our property value is this and the following year, you could pay more in property tax and more in property tax for the district.
The district is still going to receive this much money, because even if your property values raised, and you sent this much in locally for tax, we would have to send this much back to the state. This would be what’s known as recapture, if we raise more locally than the amount of the guarantee, then that difference gets recaptured and sent back.
I know there’s a lot of feeling in the community, because the reality is that we pay each year locally and our taxes keep going up each year. I keep sending more each year , why isn’t that enough?
The ruler shows you that what we’re getting locally in exchange for your increased property tax is literally nothing. because the basic allotment hasn’t been moved by the state legislature. That explains the first dollar of your called MNO tax rate, the maintenance and operations tax that pays operating cost of the district.
The other four pennies that you’ve paid historically, that is, a dollar for these four pennies, known as golden pennies. The reason why they’re golden pennies is that the level of guarantee that we receive on these pennies is considerably higher than on the first dollar.
To give you an example of that, this was the guarantee on the first dollar for the golden pennies. The entitlement is much higher than that, it literally goes to the ceiling of this room, because it’s tied to the Austen wealth level.
What we receive on these pennies is considerably higher than on the first dollar. It is to give you context, that’s how state funding works or how a dollar for on your mno tax rate is to generate the money that it does for the district.