The $95 million adopted combined budget is based on a tax rate of $1.38, up two cents from last year’s rate of $1.36. The initial proposal by Chief Financial Officer Jim Ross called for a 1-cent tax increase in the Interest and Sinking Fund, which is allocated to pay the district’s bond payments, and a 1-cent increase on the Maintenance and Operations rate, which funds the General Fund.

Last year’s I&S rate was $.35, while the M&O rate was $1.01.

However, the Board of Trustees requested that Ross look for other funding options rather than raise the M&O rate in order to fund the $75 million general fund.

The most likely option will stem from House Bill 3646, which was passed by the 81^st Texas Legislature on June 1, the last day of the Legislative Session. The bill allows school districts the use of federal “stabilization” funds, which, Ross said, is not “stimulus money.”

Ross explained that shortly before his Aug. 10 presentation to the board about the proposed budget, the Texas Education Agency issued an opinion stating that school districts could use the stabilization funds available from HB 3646.

It’s unclear how much or if Tomball ISD would receive the federal funds, but whatever the outcome, Ross said his department will now need to re-work the budget.

“I’m definitely going to have to amend it,” he said. “It’s definitely not the adopted budget at this point.”

According to district spokesperson Staci Stanfield, the district has until Aug. 20 to adopt the budget. The district is allowed to approve the budget prior to adopting its tax rate, Ross added.

At press time last week, Tomball ISD had yet to receive the certified taxable value from the Harris County Appraisal District (HCAD). The school district needs the official tax role from HCAD in order to set the tax rate.

Ross explained that with the recent opening of several new facilities in the district, including two new schools, the district’s bond payments have increased and that raising the rate on the I&S fund was needed.

“The one cent is absolutely necessary,” Ross told the board Aug. 10.

According to the budget report, the proposed Debt Service Budget is $17.6 million, with an estimated revenue of $17.7 million. The report also stated that debt payments for 2009-10 have increased over last year by 12.37 percent, or $1.9 million.

Even with the likely increase of the tax rate, Ross said Tomball ISD has one of the lowest rates.

“We’re way ahead of everyone else,” he said.

A public hearing for a proposed tax rate has yet to be scheduled. For more information about this year’s budget, visit www.tomballisd.net

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