San Marcos — The San Marcos CISD has been put on notice that the district may be but a couple of budget cycles shy of having to give some of it’s funds away under the Robin Hood school financing system.
But, said Assistant Superintendent Mike Abild, if trustees and administrators are smart with their planning, it doesn’t have to happen.
The district put out word Friday that SMCISD has recently been notified of its status as a Chapter 41 property wealthy school district for the 2008-2009 budget year.
Such notice is issued when a school district’s property wealth per student in the Weighted Average Daily Attendance (WADA) is $319,500 or more — with that figure representing the “equalized wealth level” set by the state.
Abild said the SMCISD’s wealth per student for the 2008-2009 budget year is estimated to be $342,000; while the WADA at which districts actually have to pay into Robin Hood is $374,200.
Abild acknowledges that’ a confusing set of numbers, explaining that it’s easier to understand when broken down.
“The Legislature requires school districts compress their tax rates,” he said. “For most districts including San Marcos that meant the rate had to come down to $1 per $100 valuation” of property taxes.
And, that tax rate has two parts: The general fund supports teachers’ salaries and supplies and other operations of the school district, “what we commonly think of as school,” he said.
“The other component is the interest in the sinking fund portion, the debt service portion, the portion that makes the district’s house payment and retires bonds we sold to build new facilities.”
Only schools that have a WADA of $374,200 or more must use part of that first $1 for Robin Hood payments.
Above that initial $1, Abild said the state allows districts to levy “super pennies.”
“The thing that’s super about them is they are not subject to Robin Hood recapture at all. School districts can levy those four cents of taxes and not have any concerns whatsoever regarding Robin Hood payments.”
With voter approval, districts can actually levy up to six super pennies. But when they do, they have to pay Robin Hood for any WADA above $319,500.
“It becomes more regressive as the tax rate increases,” Abild said.
Should SMCISD actually be subject to Robin Hood payments, Abild said there are five ways districts can equalize the wealth: Consolidating with another district, detaching property, purchasing attendance credits from the state, contracting to educate nonresidents students, or consolidate tax bases with another district.
“The District’s designation as a Chapter 41 district will have no effect on the district’s 2008-2009 budget,” he reiterated. “But it will have to be taken into consideration and addressed when developing future budgets and tax rates.”
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