1	G-PISD Finance Needs WHERE DO WE GO FROM HERE?
2	SCHOOL FUNDING RULES CHANGE In 2006, the State Legislature changed the way school districts are funded. School districts no longer benefit from rising local tax bases to fund Maintenance and Operations (M&O) budgets. Now, as local property values increase, state funding declines, so school revenue remains flat. The Legislature made no allowance for inflation, pay raises, or unfunded mandates.
3	SCHOOL FUNDING RULES CHANGE Now, insufficient revenue causes many districts, including G-PISD, to use fund balance (savings) to operate. In 2007-2008, G-PISD budgeted $1,550,000 from savings and the district will do so again in 2008-2009. This will exhaust district savings. Other districts report similar circumstances.
4	What Else Impacts G-PISD?
5	Local Industry Property Tax Protest of 8 Years Ago Continues to Impact G-PISD G-PISD would have received approximately $1.2 M in revenue each year had the industry protest not succeeded. Increased taxes paid by other property owners helped, but did not close the gap. Aggregate loss in funding to G-PISD is greater than $9 M.
6	WHAT DO DISTRICTS DO THAT ARE FACED WITH THESE CHALLENGES? Use Fund Balance to Operate Until Depleted Reduce Programs and Costs Pass Rollback Election Consolidate Districts
7	G-PISD Now Needs to Focus On Financial Survival The district is asking the G-PISD community for an increase in Maintenance and Operations (M&O) property tax rate of 13 cents, raising the rate from $1.04 to $1.17.
8	WHY IS AN ELECTION REQUIRED? The current M&O tax rate is $1.04. State law requires school districts to hold tax rate elections when the M&O tax rate rises beyond $1.04. G-PISD is holding an October 11, 2008 election to comply with the law.
9	Area Districts Holding Tax Rate Elections Mathis – last year (passed) Sinton – last year (passed) Odem-Edroy – last year (passed) G-PISD – this year Skidmore-Tynan – this year Beeville – this year Taft – this year Kenedy County – this year Most districts expect these elections in future years
10	WHAT WILL BE THE IMPACT ON TAXPAYERS? G-PISD is lowering its Interest and Sinking (I&S) tax rate in the 2008-2009 budget by $.13. With ratification of the Maintenance and Operations (M&O) tax rate increase of $.13, the net increase in the tax rate for taxpayers will be $0.00. This flat overall tax rate will generate $2.1 million that the district will use to maintain its operations. Gregory-Portland ISD Historical and Projected Tax Rates (includes the ratified rate.) Oct. 2005 $1.74 (M&O = $1.50 and I&S = $.24) Oct. 2006 $1.61 (M&O = $1.37 and I&S = $.24) Oct. 2007 $1.36 (M&O = $1.04 and I&S = $.32) Oct. 2008 $1.36 (M&O = $1.17 and I&S = $.19)
11	How is the Tax Rate Comprised? M&O - Maintenance and Operations Funds daily district operations Pays for items such as fuel, utilities, building and grounds maintenance, etc. I&S – Interest and Sinking Funds debt Pays for interest and principal on outstanding bonds.
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13	What Happens If Voters Do Not Approve Use Of The $.13? G-PISD will have to reduce the budget by more than $1.5 M no later than in the ’09-’10 school year. G-PISD could reduce or eliminate non-mandated programs. G-PISD could convert extra-curricular programs to “Pay to Play” status. G-PISD could reduce/eliminate elective courses to the minimum necessary to make master schedules work. G-PISD could reduce bus runs to rural routes only. G-PISD could raise pupil/teacher ratios in classes in 5^th-12^th grades. G-PISD could reduce/eliminate future pay raises.
14	What can $2,100,000 in additional dollars do for Gregory-Portland ISD? The overall flat tax rate will generate up to $2.1 M in funds for the school district annually. This funding for ’08-’09 will do the following: Provide for increased fuel costs Provide for increased utility costs Provide for replacement technology Restore Fund Balance (savings)
15	Cost Reductions Implemented for 2008-2009 UIL Athletics UIL District play is determined by the UIL District Committee and will be funded by G-PISD through state-level competition. Non-UIL varsity travel will be limited to 50 miles except where schedules have already been made; travel outside that distance will be supported with campus, booster, or team fund-raising; Travel for Jr. High, sub-varsity and JV teams will be limited to the same guidelines. Where feasible, boys and girls teams will travel together.
16	Cost Reductions Implemented for 2008-2009 Cheerleaders Cheerleaders will share transportation with other activities.
17	Cost Reductions Implemented for 2008-2009 UIL Academics (Drama, Speech & Debate, Subject Contests) & Music (Band & Choir) Student participation in UIL will be funded through state-level competition. Where more economical, student groups will be combined and Suburban type vehicles rented for transport. Participation in Invitational Meets and Tournaments within a 50 mile radius will be funded with District funds. Participation in activities beyond a 50 mile radius may be supported with fund raising.
18	Cost Reductions Implemented for 2008-2009 BPA, DECA Student participation will be provided for competitions through state level. Participation beyond the state level may be supported through fundraising. Clubs Club participation in District & Area competition and events will have limited district financial support.
19	Cost Reductions Implemented for 2008-2009 Ag/FFA Student participation will be supported with District funds through state-level competition. “Buying” trips will be limited and have pre-approval from campus principal. Individual or Invitational events will not be funded with District funds. Participation may be supported with fund raising.
20	Gregory-Portland ISD Can Maximize State Aid For Its Students In an election to approve the M&O tax rate, G-PISD voters can maximize state funding for its children by approving the $1.17 M&O rate adopted by the Board of Trustees. In doing so, the state will provide 66 more state dollars for every 100 G-PISD dollars to generate a total of $2,100,000 of additional revenue.
21	How Can We Return Our Tax Dollars Paid To The State Back To Our Community? The way to bring our share of state dollars back into the G-PISD community is by giving voters the opportunity to approve the $1.36 total rate adopted by the Board of Trustees ($1.17 M&O and $0.19 I&S).
22	Taxes Frozen On Over 65 And Disabled Homesteads Tax bills on Over 65 and Disabled Homesteads will not go up. They will never go up unless improvements are made to the Homestead. Taxes for Over 65 exemptions will not go down if the election fails, unless the value of the property declines.
23	Percent Reductions In Taxes for Over 65 Frozen Homesteads – Old Law to New Law
24	Other Information Future funding increases for G-PISD will occur only when enrollment and average daily attendance (ADA) increase. G-PISD needs to save part of the $2,100,000 so we can operate in the future.
25	What Financial Impacts Result From An Election That Passes and One That Does Not Pass?
26	G-PISD Community Members Have Clear Choices.
27	QUESTIONS?
28	THANK YOU!