South San Antonio Impartial Faculty District will faucet into the state’s “catastrophe pennies” program to unlock $3 million of their finances for one-time bills.
Taken over by the state in February after a Texas Training Company investigation discovered the district’s elected board members mismanaged funds and violated governing procedures, the Southside district faces a multi-million greenback finances deficit throughout a state legislative session that’s been gradual to cross a public faculty funding invoice.
Although faculty districts haven’t seen a rise in base funding from the state since 2019, districts in areas declared as catastrophe areas by Gov. Greg Abbott are allowed to levy extra taxes for a singular tax yr for discretionary spending. The one-time tax improve is paid for by the state, not the varsity district’s taxpayers.
For each native tax greenback collected, the state places within the additional cents requested by the varsity district.
Throughout a daily board assembly Monday evening, South San ISD’s chief monetary officer Tony Kingman beneficial that the appointed board of managers approve a decision to undertake a 3-cent improve underneath the Tier II tax effort of the state’s tax code.
“With the legislative session nonetheless underway and key funding choices pending, this decision gives flexibility whereas defending the district’s monetary stability,” Kingman informed the board.
Kingman additionally steered utilizing catastrophe pennies to fund one-time expenditures, corresponding to bonuses, raises, recruiting efforts and district purchases.
“We’re conscious that the catastrophe planning can not proceed eternally.”
Solely faculty districts inside counties affected by excessive climate circumstances can use the tax measure, which for South San ISD will go into impact Sept. 1, ending Aug. 1, 2026.
Abbott issued a catastrophe declaration for Bexar County on Oct. 14.
On March 4, Abbott amended and renewed the October proclamation certifying states of catastrophe in sure counties based mostly on the existence of wildfires posing “an imminent risk of widespread or extreme injury, harm or the lack of life and property.”
The next day, two separate wildfires sparked on the South Aspect of Bexar County, inflicting native officers to name for necessary evacuations and deeming six properties a complete loss.
General, the 2 wildfires burned greater than 500 acres of land in primarily rural stretches of the county.
South San ISD has used catastrophe pennies earlier than, the district’s state-appointed superintendent Saul Hinojosa stated, calling them an “modern solution to result in $3 million” for the district.
“We have now been in a position to pay incentives to recruit,” Hinojosa stated in regards to the tax improve program. “So it has labored, and we’ve been in a position to buy buses and issues like that.”
The 1979 legislation that enables faculty districts to make use of catastrophe pennies, which is simply activated when Abbott declare a state of catastrophe of their particular counties, doesn’t specify or restrict what faculty districts can use these funds on.
Beneath the present tax charges, qualifying faculty districts can elevate taxes by 1 to five cents with out voter approval.
Final yr in June, largely rural Judson Impartial Faculty District activated the catastrophe pennies program to chop its finances deficit by $12 million, citing a extreme storm and separate catastrophe proclamation.
On the time, faculty board trustee Monica Ryan questioned why the district would approve the tax decision since Judson ISD’s amenities skilled little to no storm injury.
Equally, no important injury was reported by South San ISD in connection to the latest wildfires.
In a special effort to save cash, South San ISD will submit a “low attendance days waiver” to the Texas Training Company for varsity days missed by college students on account of climate, well being or safety-related points.
Since public faculty funding relies on pupil attendance, low attendance would negatively influence the district’s finances. If South San ISD’s waiver is authorised by the TEA, the state wouldn’t embrace low attendance days in its funding calculations.
Adopting the catastrophe pennies measure is a “sensible” transfer for the district, stated state-appointed board member Aurelia Prado.
“It doesn’t depart cash on the desk,” Prado stated earlier than the board unanimously authorised the measure. “That is mainly free cash that we’re getting from the state with out having to tax our native residents.”
