The Magnolia ISD Board of Trustees has called a Tax Ratification Election or TRE for Tuesday, August 14, 2018.
Magnolia ISD has proposed a change in the tax rate for the 2018-2019 school year that requires voter approval. It is important to note this penny exchange requires a restructuring of the tax rate but will not increase the school district tax rate.
School districts are funded through different sources: local tax dollars, state funding, and federal funding. Local taxes are collected and go into two different funds – maintenance and operations or M&O and Interest and Sinking, or I&S. The M&O fund pays for the everyday operations of the district including books, student resources, salaries and building maintenance. The I&S is similar to a mortgage and pays for debt on school bonds.
If the TRE passes, the additional M&O pennies will allow the district to:
• give teacher and staff raises to remain competitive,
• hire additional staff in areas of need,
• fund immediate security needs, and
• fund student program enhancements.
By Board Resolution, the TRE or Penny Exchange would keep the overall tax rate at $1.3795 by reducing the I&S (debt side) by $.10 and moving the $.10 pennies to the M&O (operations side).
If the TRE does not pass, the tax rate will roll back to $1.04 M&O and $0.3395 I&S for a total tax rate of $1.3795 (same rate the past four years).
This penny exchange would allow the district to keep the total tax rate at $1.3795, the same rate it has been since 2014.
Net change to the MISD Tax Rate = $0
No Tax Rate Increase.