North Zulch ISD passed a proposed tax restructure after Monday’s Tax Ratification Election (TRE) by a total count of 68 votes for the restructure and 20 votes opposed.
This passage will not raise any taxes. In fact, the total tax rate for 2018-19 will actually be lower than it was in 2017-18. The successful TRE allows NZISD to now put more money into their Maintenance and Operations (M&O) tax rate and subtract the same amount from Interest and Sinking (I&S).
The rate sat at $1.3268, and the passage will drop that to $1.27. During the 2017-18 school year, the M&O tax was $1.04 with the I&S tax at $0.2868. The restructure would raise the M&O tax for 2018-19 to $1.10, an increase of six cents, but lower the I&S category to $0.17. If passed, the total savings from 2017 to 2019 would be over nine cents.
School districts are funded through different sources: local tax dollars, state funding and federal funding. Local taxes go to two different funds, M&O or I&S. The M&O fund pays for the everyday operations of the district, which include books, student resources, salaries and building maintenance. The I&S pays for new facilities for the district. If the proposal were to pass, the state would increase the district’s funding by $20,000.
Last month, North Zulch listed what they would touch on if the proposal was to be passed: increase and maintain safety in the district, retain current teachers at NZISD, recruit highly qualified new teachers to NZISD and build upon standards in preparing their students for the post-secondary school path, which would include Dual Credit and Career and Technology Education Certifications.