Jim Murphy - A Republican for Texas State Representative

SBISD passes last ‘fun’ budget

By NORM ROWLAND [ nrowland@hcnonline.com ]
May 21, 2008
Copyright 2008 Houston Community Newspapers

Spring Branch ISD trustees approved a 2009 budget with spending expected to exceed revenue by $10 million and urged patrons to pressure state legislators to fix public school financing.

“This cq is the last budget we will have fun approving if the Legislature doesn’t do something,” Mike Falick, board president, said at the board’s meeting Monday night, May 19. “I urge people to start calling and writing their legislators. Now is the time to get involved.”

Actually, approval of the $269 million general fund budget wasn’t all that much fun for the trustees.

“I’m for the budget, but it burns me that we are sending $19 million back to the state (in Robin Hood payments),” trustee Wayne Schaper Sr. said. “That’s money we should be using to educate our kids.”

Prior to the vote, state Rep. Jim Murphy addressed the board during a public hearing on the budget and pledged to work to provide relief for the state’s public school districts.

“I’m going to try to make sure we adjust for inflation and for regional differences,” he said.

Dr. Duncan Klussmann, SBISD superintendent, has said that every school district in Texas will be bankrupt in three to seven years unless the Legislature quickly fixes the funding formula adopted in 2006.

At that time, the Legislature froze the amount of revenue districts may raise locally at the per student level raised in 2006. As a result, higher amounts of revenue resulting from increases in valuation go to the state, not the district.

School districts may raise the maintenance and operations tax rate up to 13 cents, if voters approve.

The $10 million deficit for 2009 will reduce the district’s fund balance to $48 million. Under the present state funding system, the district projects a deficit of $17 million in FY 2010, reducing the fund balance to $31 million, and $25 million in FY 2011, reducing the fund balance to $5.6 million. The projected deficit is $33 million in FY 2012 and $41 million in FY 2013.

Passage of the 13 cents additional tax allowed by the Legislature could raise about $19 million a year but not enough to keep the district in the black without drastic cuts to programs and personnel.

Lacking the ability to cope with inflation, districts will ultimately become insolvent when their reserve funds are exhausted, Klussmann says.

So far, the district has managed to operate without cutting programs or teaching staff, trustee Dave Converse points out, but other districts haven’t been so fortunate.

Most of the budget’s 4.6 percent increase in projected expenditures is due to a jump in Robin Hood payments from $12 million to $19 million. Without Robin Hood, the budget is 1.6 percent greater than the current budget.

The budget projects a general fund tax rate of $1.09 per $100 of assessed valuation, same as 2008, and a debt service tax rate of 26.45 cents per $100, an increase of 6.95 cents, for an overall rate of $1.3545. The debt service tax rate increase is due to the sale of the first of the $597.1 million in building bonds passed by voters last fall.

Following approval of the budget Monday, the board approved designs for the new Hollibrook and Westwood elementary schools and instructed architects PBK and SHW to develop construction documents.

The board also approved naming the new field house adjacent to Tully Stadium the Mike Williamson Field House in honor of former athletics director Mike Williamson.

Earlier, the board recognized Rita Millan, lead custodian at Spring Woods High School, as Employee of the Month, and Maryellen McGlothlin, who volunteers at the Guthrie Center, as Volunteer of the Month.