Budget Update and House Bill 3
June 6, 2019
The recently concluded Texas legislative session addressed several education-related items, including school finance. House Bill 3, which passed at the end of the session, has many implications for school districts including Dripping Springs ISD. Elements in the bill are property tax rate compression, reduced recapture obligations for Chapter 41 districts, new educational allotments from the state, employee compensation, and more. The governor has until June 16 to sign the bill into law.
School districts are analyzing the 308-page bill to determine how it will impact their budgets. This poses the greatest challenge for districts like DSISD with a July 1 fiscal start date, which means budgets are approved in June. We are working diligently to rebuild our budget using the components of HB 3 as we interpret them, with the understanding that some amendments may be necessary as clarity comes from the state over time.
This new direction means that the budget presented later this month will be different than preliminary drafts that were presented to the Board in April and May. Assistant Superintendent for Finance and Operations Scott Drillette will share new information with the Board of Trustees at a workshop on June 17; this meeting starts at 6:00 p.m. and is open to the public. Then, on June 24, the budget will come before the Board for approval following a public hearing; this meeting also starts at 6:00 p.m. The public notice for this meeting will be posted with a Maintenance & Operations tax rate that reflects the recent legislation.