Posted Date: 10/17/2021
In August, the Pampa ISD School Board voted to conduct a Voter-Approval Tax Rate Election (VATRE) to be held on Tuesday, November 2nd. The VATRE involves moving two pennies from the Interest and Sinking (I&S) side of school finance to the Maintenance and Operations (M&O) side. The move will not raise the tax rate and will generate an estimated $600,000 for the district from the state. These two pennies are considered high-yield pennies and are weighted in the funding formula to generate more money at the state level than at the local level. The move of the two pennies from the I&S side is possible because the district was able to refund the largest portion of their debt last February to a lower interest rate, thus saving the district $3,139,175 for the life of the debt. The roughly $185,000 saved annually from the refunding allows the district to reduce the I&S rate by two pennies. By moving the two pennies to the M&O and generating the additional income from the state, the district will be able to help PISD be more competitive in compensation and complete other projects. The additional $600,000 revenue from the state is provided annually, under current legislation.
The ballot will state:
Ratifying the ad valorem tax rate of $1.2384 in Pampa ISD for the current year, a rate that will result in an increase of 0.97 percent in maintenance and operations tax revenue for the district.
The wording is a little confusing because the overall tax rate will remain the same and will actually be slightly reduced. The two penny M&O increase is offset by the reduction of the two pennies from the I&S. If you have any questions or concerns, please do not hesitate to contact me by phone (806) 669-4700, email: firstname.lastname@example.org, or in person.
Hugh Piatt II
Hugh Piatt II