Penny Swap & Drop
The Eanes ISD Board of Trustees approved unanimously for voters to decide whether to increase the maintenance and operations tax rate and decrease the interest and sinking fund rate, resulting in an overall reduction in the total tax rate, while keeping more money in Eanes ISD. If passed, the Penny Swap & Drop, also known as a tax ratification election (TRE) would:
- drop the interest and sinking (I&S) tax rate 3.25 cents;
- increase the maintenance and operations tax rate (M&O) 2 cents;
- have the combined effect to lower the overall tax rate to $1.20 per $100 of tax valuation (from the current total tax rate of $1.2125);
- increase the amount of local M&O tax dollars collected in Eanes ISD, that are not subject to recapture by approximately $3 million, allowing for more local control of local revenue.
Swapping the two cents from the I&S side to the M&O side will allow Eanes ISD to access two additional "Golden Pennies," which are NOT subject to recapture. All local revenue that is a result of Golden Pennies will stay in Eanes ISD.
The Eanes ISD Board has remained focused in its strategic objectives to
- attract and retain high-quality staff by remaining competitive in salaries and benefits with other local school districts;
- maintain or lower current class sizes;
- continue support for curricular programs that are in line with our objectives.
Many of these objectives are budget-dependent, which led to the unanimous support of the Board to call for the Penny Swap & Drop. This proposal, should it be approved by the voters in November, would allow the community of Eanes ISD to increase the amount of local revenue in the Eanes School District to achieve these objectives.
For the community members who do not have children in Eanes ISD, this proposal, if approved, will lower the Eanes ISD overall tax rate, allowing us to fulfill a fundamental commitment to the community for Eanes ISD to be fiscally responsible.
The action taken by the Board changes the tax rate and automatically triggers a TRE, set for November 7, 2017. By voting in that election, the community will be able to confirm the Eanes ISD overall tax rate. Early voting begins in October.
If voters approve the Penny Swap & Drop,
the overall tax rate would be 1.20
If voters do not approve the Penny Swap & Drop,
the overall tax rate would revert to 1.2125