What is the purpose of this election?
Recent changes in Texas school finance laws require AISD to obtain voter approval for a proposed tax rate increase to access additional revenue for general operating expenses.

When will the election be held?
The tax ratification election will be held on November 4, 2008, which is General Election Day across Texas and the nation.

What is AISD Proposition 1?
AISD Proposition 1 is on the ballot to determine if voters will approve an increase in the AISD's maintenance and operations (M&O) tax rate of 3.9 cents, from $1.04 to $1.079 per $100 of assessed property valuation. The additional 3.9 cents will raise $17.7 million.

How will the additional revenue be spent?
The $17.7 million would be used to cover a 3% salary increase for teachers and other employees and to continue full individual health insurance coverage for all employees. The 3% salary increase depends on voter approval on November 4.

How much will this cost a homeowner?
The proposed tax rate increase would mean a $39 annual tax increase on a $100,000 home, or about $3.25 per month. For the average home valued at $233,324, the tax increase would be $91, or about $7.58 per month.

What about persons who are over 65 or those with disabilities?
The proposed tax rate increase does not affect the taxes on homes of persons who are 65 years of age or older, or those with disabilities.

Why does the district need additional revenue?
The district is experiencing increases both in uncontrollable costs, such as fuel and utility prices, and in greater demands for educational programs to meet rising state academic standards and the needs of Austin students.

How are the district's revenues affected by rising property values?
The state legislature changed the school finance funding formula in 2006. Under the new state funding formula, the District lowered the local school property tax rate by nearly one-third, to $1.04 from $1.50 per $100 of valuation, and the State replaced the lost revenue. However, the state regulations are set up so that when a homeowner's property value goes up and the tax payment increases, almost all of the increase goes to the state. If no election were held, taxes on the average person's home (valued at $233,324 in 2008) would increase $252 a year because of increased property values; AISD would retain $35 and send $217 to the state.

How much money does AISD send to the state?
For 2008-2009, the amount that AISD must send to the state is $172 million, an increase of $55 million over last year's $117 million. See Figure 1.

Figure 1:
AISD Budget & State Payments

How will this year's expenditures compare to last year's expenditures?
Excluding the additional payments to the state, the General Fund expenditures for 2008-09 total $692.6 million, which is $9.4 million (1.4%) above last year's expenditures of $683.2 million. See Figure 1.

What steps is AISD taking to reduce expenditures?
This fall, the Board will appoint financial and organizational experts, and local citizens, to conduct an in-depth analysis of the district's budget and health insurance programs to help balance AISD's revenues and expenditures in the coming years.

How does AISD's financial situation compare to other school districts?
AISD has not increased its maintenance and operations (M&O) tax rate in six years. Including the interest and sinking (I&S) portion of the tax rate, the new total tax rate of $1.202 per $100 of assessed property valuation continues to be among the lowest in central Texas. AISD also received a AA+ bond rating, one of only five districts in Texas to achieve this superior rating. This allows the district to sell school bonds at a lower interest rate.

Are other school districts holding elections for general operating expenses?
In 2007, 119 Texas school districts held tax rate elections. This fall, more than 100 districts are holding similar elections.