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Progreso ISD discusses November tax-rate election to avoid $1.7 million budget cut
Summary
District financial advisers told the board that without voter approval to keep disaster-relief/tier pennies the district would face roughly $1.7 million in lost combined local and state revenue, prompting discussion of a November TRE and community workshops before an Aug. 18 election call deadline.
Progreso ISD trustees heard a detailed school-finance briefing on May 27 on a proposed tax-rate election aimed at preserving roughly $1.7 million in annual revenue. Ankit Marianas, a financial adviser with Desai & Ojosa, told the board the district—s funding relies on two tax components — maintenance and operations (M&O) and interest & sinking (I&S) — and on state aid that averages about $6,100 per student.
"You're right now, the districts are funded approximately $6,100 per student," Marianas said in the presentation, and he explained how M&O and voter-approved I&S interact with state formulas. He said the district currently carries about $22 million in outstanding bonds and pays roughly $2.1 million annually in debt service, a portion of which the state subsidizes (about 32% on the I&S side under current assumptions).
Board members pressed staff about mechanics and timing. Trustees and advisers described "golden and copper pennies," disaster-relief pennies, and an optional tier-2 component. Administration said the district had been using disaster-relief pennies in recent years and that losing 12 discretionary pennies would reduce local levy collections by about $336,000 and state aid by roughly $1.4 million, for a combined $1.7 million impact.
Trustees discussed outreach and logistics for an election. Staff advised that to place a TRE on the November ballot the board must call the election by Aug. 18. The board asked administration to provide plain-language materials and to hold community workshops explaining how the ballot language might state an "increase" even where the district—s published tax rate would remain level after compression. Administration said it would coordinate with legal counsel and prepare outreach materials and a community workshop if the board chooses to proceed.
What happens next: staff will return with proposed ballot language, an outreach plan and updated revenue projections once final property values are certified in late July.
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