We have talked about what type of impact the possible legislative budget cuts will have on San Saba ISD. We are making plans and assessing all of the needs we have for our students. From this information we will make the necessary cuts accordingly. However, from that originally discussion I have been asked about how we can consider proposing a building program while we are also considering cutting the budget. The difference is there are two different types of budgets and two different types of tax rates and revenue sources.
The regular daily operating budget is called M & O or Maintenance and Operations. This type of budget is supported by the local $1.04 tax rate dollar and the funds the school earns from daily attendance and the state revenue program. This rate is the same each year unless the taxpayers change this rate through a tax ratification election(TRE). The revenue that funds this maintenance and operating budget (M & 0) is the budget that will be impacted by the proposed legislative cuts.
The other budget is supported from revenue collected from a voter approved Interest & Sinking tax rate that provides funds for a very specific project. For example, the last voter approved election in 1994 approved a .09 cent tax rate for the building of the middle school, building trades building, renovations to the white gym and the elementary school office complex and satellite dining. The .09 cents per $100 of property value collected by the appraisal district goes specifically to the payment of these voter approved projects. The funds cannot be diverted or spent on other projects except those approved by the voters. This .09 cents will expire in the year 2024 unless it is paid off early.
The same will be true if voters approve any new bond at a May election. The building program will be set out before the voters, a certain number of pennies per $100 valuation will be determined is needed to fund the project and that will be offered to the voters for consideration. Generally, the bonds are offered for 25 years. When the time period is completed then the program is paid off. The building program for schools is much like a home mortgage except that many people are paying for the project and the school district is the beneficiary. Fortunately for San Saba ISD, a portion of their mortgage could be at a no interest or a very low interest rate because of the Qualified School Construction Bonds that were were awarded. I hope that this explanation of how the collection of voter approved pennies can support a specific project and that project only. I would welcome answering any question regarding this discussion, so please give me a call.
Please visit www.san-saba.net to view events and find information you need to know about SSISD. As well, don’t forget to sign up for the "alerts" available from the website, and don’t miss the opportunity to sign up for the Parent Portal giving parents access to grades and attendance. Parents, let us know how we can help you the first day of school all the way until the last day of school!! If you have any question about this article or any other question about school happenings please contact me at 325/372-3144 or email me at firstname.lastname@example.org . We are San Saba! We are together!