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Proposition A is a voter-approval tax rate election (VATRE), which is an election required by the state that asks voters to consider approving a modified tax rate adopted by the Board of Trustees. If passed, it will allow San Angelo ISD to access the maximum amount of tax revenue from golden pennies.  Proposition A would provide 6 million dollars of new funding in the current fiscal year—and is expected to provide at least as much each year thereafter—for the district’s Maintenance and Operations instructional budget without raising the current tax rate. 65 percent of the money generated by Prop A will come from the state. 

Board Approves Adjusted 2024-2025 Compensation Plan Pending Prop A Passage

On October 2, 2024, the San Angelo ISD Board of Trustees unanimously approved the adjusted 2024-2025 Compensation Plan, contingent upon the passage of the voter-approved tax rate election (Prop A) on November 5, 2024. Key changes include:

  • Increasing the minimum starting teacher pay to $50,000
  • A $2,500 pay increase for each employee in the Teacher Job Family
  • A market adjustment for all other job families
  • All employees not in the Teacher Job Family receive the result of the market adjustment or 4% of the pay grade midpoint (whichever is greater)

If Prop A is approved, the funds will take effect from the start of the 2024-2025 school year. 

 

Election Outcome

Choice Absentee Voting Early Voting Election Day Voting Total
FOR 1,025 57.68% 15,201 59.88% 3,537 55.25% 19,763 58.88%
AGAINST 752 42.32% 10,185 40.12% 2,865 44.75% 13,801 41.12%
Cast Votes: 1,777 100% 25,385 100% 6,402 100% 33,564 100%
Undervotes 291   1,480   490   2,261  
Overvotes 0   0   0   0  

 

Prop A Funding Priorities

The board decided to focus on funding two major areas including:

Where do your tax dollars go?

School budgets and tax rates are made up of two parts: Maintenance and Operation (M&O) and Interest and Sinking (I&S). The money generated from each part can only be used for specific types of expenses. M&O funds pay for day-to-day instructional and operating costs like salaries, benefits, supplies, maintenance, food and fuel., while I&S funds pay for capital improvements like new construction, renovations, large repairs, and other projects in bond elections.

Tax Dollar Buckets

Prop A Has NO Tax Rate Increase

No Total Tax Rate Increase

PROP A SWITCHES PENNIES FROM I&S to M&O

This proposal presents a plan to leverage the two existing tax rates to meet funding priorities. Three pennies of I&S tax revenue are reduced, and if voters approve Prop A, the M&O collection increases by three pennies.This “tax switch” has a zero impact to the overall tax rate & provides an additional $6 million in new annual revenue. If approved, this restructure allows the district to make use of the dollars they are already receiving in order to address critical budget priorities without raising the overall tax rate. The recently approved overall $0.81231 district tax rate will not increase for homeowners in San Angelo ISD.

  Current Tax Rate Tax Rate if Prop A is Approved
Interest & Sinking $0.11741 $0.08741
Maintenance & Operations $0.6949 $0.7249
Total Tax Rate $0.81231 $0.81231

65% of New Revenue Comes from the State

This tax restructure will provide an additional $6 million in revenue, 65 percent of which comes from the State - with zero tax rate increase. The official ballot language says the proposal will generate an additional $2 million, but that is just from local taxpayers. Prop A will also require the state to kick in over $4 million to San Angelo ISD, for a total of $6 million in additional revenue, annually. For every dollar local taxpayers put in — the state will put in two. 

65 Percent New Revenue Comes From State
M&O Bucket

SAISD Tax Rate History

The current tax rate is 81 cents — the lowest it has been in the last 10 years and one of the lowest tax rates in the West Texas area. The district also refinanced a portion of its current bond debt resulting in an overall savings of $7 million to district taxpayers over the remaining life of the bond payments through 2034.

With the passage of Prop A, San Angelo ISD would transfer three pennies of tax revenue collected for the Interest & Sinking fund to the Maintenance & Operations fund. The recently approved overall $0.81231 district tax rate will not increase for homeowners in San Angelo ISD.

SAISD Tax Rate History

Click image to view larger.

Inflation Impact

In the last 5 years, operating costs like salaries, supplies, and fuel continued to rise, while the state funding for school operations has not kept pace. The State of Texas has not provided additional funding for school districts since 2019 - even with inflation at record highs. Due to inflation, schools no longer have the same buying power they did in 2019 when the basic allotment was set at $6,160. According to the Consumer Price Index, inflation since 2019 has increased by roughly 24%. That means, in order to have the same buying power as they did in 2019, the basic allotment would need to be over $7,697.55. The Texas Legislature adjourned this most recent session without increasing the 2019 basic allotment. This puts constraints on the district’s ability to continue  providing a safe, supportive, and secure environment in San Angelo ISD.

Teachers also face rising health insurance premiums. This means teachers would experience a salary decrease without the raise from a successful Prop A. The district has made budget cuts where it can, but 85% of the budget is earmarked for salaries of teachers and support staff. Without additional in revenue, cuts will need to be made to staff and programs.

Inflation Graphic

How does San Angelo ISD Compare to other School Districts?

Teacher Salaries

San Angelo ISD starting teacher salaries are approximately $4,500 lower than the average of other  local districts in the West Texas area. With the  passage of Prop A, San Angelo ISD would increase the  minimum starting teacher pay to $50,000 and provide a $2,500 pay increase for each employee in the Teacher Job Family.

School District Starting Teacher Salary
Midland ISD $61,200
Ector County ISD $60,600
Greenwood ISD $55,686
Andrews ISD $54,086
Big Spring ISD $51,630
Abilene ISD $50,775
Abilene Wylie ISD $49,500
San Angelo ISD $47,500
Brownwood ISD $44,500
Average $52,066

 

SCHOOL TAX RATES

San Angelo ISD has the lowest tax rate in the region and one of the lowest tax rates in the West Texas area, at 81 cents per $100 of home valuation. With the passage of Prop A, San Angelo ISD would transfer three pennies of tax revenue collected for the Interest & Sinking fund to the Maintenance & Operations fund. The overall $0.81231 district tax rate will not increase for homeowners in San Angelo ISD.

Area Tax Rates

 

OVER 65, DISABLED, & VETERANS

Current homeowners ages 65 and over will not be impacted by the passage of Prop A. Their school taxes will not exceed the frozen dollar amount. Disabled veterans with 100% disability rating or surviving spouses of a member of the U.S. Armed Forces killed in the line of duty would not see an increase as a result of this election.

Over 65 No Tax Impact

 

What are Golden Pennies?

Golden Penny

The school finance system gives school districts the option to increase property tax rates to raise additional funding to “enrich” their educational offerings through the M&O Tier II tax rate. “Pennies” refer to the local tax rate calculated in cents per $100 of property value. The amount of revenue raised by a “penny” is determined by the taxable property value within a district. When school districts increase property tax rates through the enrichment tier, the first pennies per $100 of property value levied are golden pennies, so-called because of the high value the state guarantees to school districts that choose to access them. School districts can levy up to eight “golden” pennies per $100 of taxable property value for enrichment funding. These “golden” pennies generate a guaranteed yield of $98.56 per penny per weighted student. In other words, in districts with a tax base that does not generate this amount of funding, the state “equalizes” the yield by providing additional state funding to the school district up to the guaranteed yield.  The first five of the eight “golden” pennies can be accessed at the school board’s discretion without voter approval. However, the remaining three “golden” pennies require voter authorization through a VATRE.  This additional M&O revenue can be used to fund critical needs, like providing competitive salaries to attract and retain high-quality educators and investing in essential educational programs and resources. 

Financial Transparency

The district’s budget challenges are due to several factors beyond its control. In fact, the district has received the highest rating for financial management by the state and is recognized for excellence in budget accountability and transparency. Additionally, in August 2020, San Angelo ISD refinanced a portion of its current bond debt, saving taxpayers $7million in interest. San Angelo ISD has earned the following financial awards for transparency and financial integrity.

School FIRST Logo

Financial Integrity Rating System of Texas (FIRST) - Superior Achievement
21 years

Certificate of Excellence in Financial Reporting

ASBO Certificate of Excellence in Financial Reporting
23 years

Transparency Stars Logo

Texas Comptroller of Public Accounts' Transparency Star – Traditional Finances
9 years

Transparency Stars Debt Obligations Logo

Texas Comptroller of Public Accounts' Transparency Star – Debt Obligations
8 years