SAN BENITO — For the first time in 14 years, the school district’s tax rate is dropping.
Since the 2008-2009 school year, the property tax rate has stood at $1.3049 per $100 valuation.
Earlier this week, the school board’s majority agreed to cut the tax rate to $1.2915.
As part of the total tax cut, board members voted 4-2 to trim the maintenance and operations rate of $1.0250 to 1.0116, board member Rudy Corona, who voted against the tax cut, said Thursday.
Meanwhile, the Texas Association of School Business Officials opposed the cut, according to Monica Mata, the district’s chief financial officer.
Last year, the district’s tax rate generated more than $12 million, officials said.
The new tax rate is projected to generate a $383,000 reduction in revenue, Corona said.
This year, the district’s total appraised value jumped to $1.9 billion, up from $1.7 billion last year, a public notice states.
Mulling effect on state funding
Meanwhile, board member Ariel Cruz, who also voted against the tax cut, expressed concern the move could lead to a drop in state funding.
“This year’s state revenue per student is based on last year’s tax rate,” she said. “So this year, we don’t know how it’s going to effect state funding.”
As part of a formula, the state gives the district about $5,500 a year for each student in class.
On Thursday evening, district officials stated, “state taxes were not reduced.”
“San Benito CISD is pleased that it was able to provide a tax reduction that will help lessen the effects of increasing property values,” officials stated.
TASBO opposes cut
In a public notice, the district proposed a total tax rate of $1.3040 made up of a maintenance and operations rate of $1.0241 and an interest and sinking fund rate of 0.2799.
During a meeting Tuesday, Mata told board members Amanda Brownson, the Texas Association of School Business Officials’ associate director of policy and research, did not recommend such a tax cut.
“Amanda Brownson reiterated that she did not want us lowering 1 cent because it has repercussions every year from here on out,” Mata told board members.
District review pans out
“Since May of 2021, the San Benito CISD Trustees have reviewed the district’s tax rates,” officials stated. “The trustees that voted for the reduction have acknowledged that the district has one of the highest school tax rates in Cameron County.”
Meanwhile, Superintendent Theresa Servellon described the tax cut as a “win-win situation for our community.”
“San Benito CISD has conducted a deep dive into its financial obligations and is strategically allocating funding to support student and staff needs,” she stated. “Therefore, it is a win-win situation for our community. Our residents will receive the tax relief and our schools will continue to furnish the required resources and materials so that our students receive a gold standard education.”
Lopez proposes tax cut
During discussion, board member Janie Lopez proposed the tax cut.
“Our families in San Benito CISD are struggling right now and need property tax relief,” she said.
“I am proposing a modest 1-cent tax cut to our M&O to help our community as well as some of our employees that live in our community and are taxpayers. We can afford this tax cut,” Lopez said. “We are proposing a total tax rate of $1.3040. The proposed rate provides an additional $316 in local revenue per student in addition to the $346 increase in state revenue per student. The much-needed 1-cent tax cut will still provide for a significant increase in revenue per student. This proposed tax cut will put much-needed money back in the pockets of our taxpayers and our employees that are taxpayers while ensuring we have the resources necessary to provide a high-quality education to our students.”
Background
In February, Lopez proposed a tax cut.
At the time, she requested officials conduct a feasibility study to determine if the district could cut its tax rate.
Since 2012, the district’s annual expenditures have climbed from $1.13 million to $1.34 million, Lopez said.
Meanwhile, she said, the district’s student enrollment dropped from about 10,700 to 9,700 students amid the coronavirus pandemic.
On Thursday, Lopez and board President Ramiro Moreno did not respond to requests for comment.
