Pflugerville ISD voters to decide on tax ratification measure. Here's what you should know

Voters in the Pflugerville school district on Nov. 7 will decide whether to approve a voter approval tax ratification election to approve seven additional "copper pennies" that officials say will help provide an additional 3% pay increase to district staff.

More: Pflugerville school district approves $297.5M budget, including 3% pay raises

What is a VATRE?

A voter approval tax ratification election, or VATRE, is an election that requires school districts to gain voter approval to raise its maintenance and operations tax rate above a rate set by state law.

Copper pennies are the pennies a district accumulates in addition to eight cents above the set rate. They are called copper pennies because they generate less money to the district than "golden pennies," or the cents not subject to recapture to poorer districts in the state are sometimes called.

In August, the Pflugerville school board adopted a proposed tax rate of $1.1092 per $100 valuation, the lowest rate in over 30 years, district officials said. They said the proposed tax rate will result in a 5.5% decrease — or about $650 — in the yearly bill of the average homeowner. The average value for a home in Pflugerville is $342,502.

The tax rate last year was $1.2646.

Why does PfISD need a VATRE?

Officials said the additional pennies the district will get if the VATRE passes will add $10.7 million in revenue that is not subject to recapture by the state and will bring the district more money to pay its employee an additional 3% salary increase.

In August, the school board approved a 3% pay increase along with its 2023-24 budget.

The pay increase included in the budget will cost the district $6.4 million. Payroll makes up 86% of the district's budget, according to district officials.

Jennifer Land, the district's chief financial officer, said the VATRE is needed to increase revenue as attendance has not rebounded from pre-pandemic numbers.

Pflugerville school district voters last passed a VATRE in 2022 with nearly 52% support. The previous VATRE gave the district four additional pennies.

August Plock, the vice president for the Pflugerville Educators Association, said that because the Legislature is not giving schools any additional funding, the district has no way offer cost of living raises to its employees.

Plock said the VATRE is needed to ensure the district can keep the quality of teachers it has and remain competitive.

"If the voters of Pflugerville approved a second VATRE, that money could be used to give teachers a 3% pay raise," Plock said. "That is important because we need to maintain the teachers that we have here in Pflugerville and not leave to go to surrounding districts."

What happens if the VATRE passes?

If the VATRE is approved by voters, the district will have a $1.3 million surplus with a tax rate of $1.1092, officials said.

Based on property taxes received and a successful VATRE, the district is expected to pay $9.8 million in recapture payments.

The VATRE will decrease a homeowner's bill by about $650 a year, officials said.

What happens if the VATRE fails?

If the VATRE is not approved, the district is looking at a $2.94 million deficit with a lower tax rate of $1.0392, officials said. Additionally, they said, the district will face a recapture payment of $2.1 million.

If the VATRE is not approved, homeowner's bill will decrease by about $831 a year. Whether or not the VATRE passes, taxpayers will have a lower school tax rate.

How to vote

Early voting begins Oct. 23 and runs through Nov. 3. Election Day is Nov. 7.

During early voting, voters can cast a ballot at any polling location. You can look up locations at teamrv-mvp.sos.texas.gov/MVP/mvp.do by entering your name, county, date of birth and ZIP code. Hours of operation vary by location.

Most counties in Central Texas — including Travis and Williamson counties — allow you to vote at any polling location on Election Day. Polling locations are open from 7 a.m. - 7 p.m. on Election Day.

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This article originally appeared on Austin American-Statesman: Pflugerville ISD voters to decide on tax ratification measure