Amid budget woes, Austin teachers demand pay raises -- school board considers tax hike

Austin School Board Mulls Property Tax Hike to Stave Off Budget Deficit

Austin, Texas school board considers a tax hike to plug a $30 million deficit, giving pay raises & hiring more staff. It's a response to state legislators' failure to increase education funding, clashing with Gov. Abbott's push for school vouchers. The district's hand is forced by the 'recapture' program, sending 41% of its funds to less wealthy districts. A tough choice: "How do we keep the lights on and keep the doors open?" asks Trustee Candace Hunter.

Austin school board mulls a property tax hike to address a looming $30 million budget deficit for 2024-25, aiming to boost employees' pay & hire more on-campus workers. The context: Texas school districts face budgetary woes due to lawmakers' failure to increase funding amid rising inflation. Last year, Gov. Greg Abbott advocated linking education spending hikes to controversial "school voucher" legislation, using public funds for private school tuition. This was thwarted by a bipartisan coalition concerned about detrimental impacts on public education funding.

Tax Hike Proposals:

• Increase tax rate from 85.95 cents to 92.87 cents per $100 of property valuation, generating ~$44 million additional revenue.
• Alternatively, a reduction to 83.77 cents per $100 is also under consideration.

For the average homeowner (with a house valued at $563,069), this translates to an annual tax bill of $4,300 at the higher rate or $3,879 at the lower rate. The proposed hike requires voter approval as it surpasses the district's authority without voter consent.

"I have a hard time cutting really, really deep until I know our community won't support this... If that comes and goes, then we know. But to do that before that opportunity — it's just not what I think our community would want us to do.” – Superintendent Matias Segura

The district already plans $30.4 million in cuts, including eliminating unfilled positions & reducing contracted services, but these measures fall short, with a predicted $30 million deficit remaining. If voters endorse a higher tax rate via a potential November ballot initiative, the funds could facilitate teachers' & librarians' pay raises, enhance staffing, & provide broader compensation increases.

Staff Rally for Higher Pay:

• Members of Education Austin, representing district employees, rallied before Thursday's board meeting, demanding consideration for better pay.
• Bree Rolfe, who supports students experiencing homelessness, underscored the need for livable wages in Austin.
• Ken Zarifis, president of Education Austin, stressed that last year's pay raise was a step forward, but it's imperative to keep pace with regional salary averages.

“We're talking about taking a taxpayer's dollar and throwing 75 cents of it into the ether so we can get a quarter.” – Board Vice President Kevin Foster, on the challenge of 'recapture' payments to the state

Trustee Candace Hunter shrewdly summarizes the district's dilemma: "How do we keep the lights on and keep the doors open? It's a new funding source or deeper cuts." A tax rate election emerges as a potential strategy to navigate this predicament without imposing more drastic cuts. The clock is ticking for the Austin school district to navigate this financial conundrum.

Sources:

• Austin school district eyes property tax rate election to give employees raises, combat deficit
• Texas School Coalition