PORT NECHES — A tax ratification election may be what keeps Port Neches-Groves Independent School District from a deficit budget.

The district is looking at the possibility of holding a tax ratification election in November. And while pennies will be shuffled from one fund to another, taxpayers won’t feel the impact in the pocketbook.

Sheri Drawhorn, business manager for the district, led the budget workshop following Tuesday’s noon meeting at the administration building in Port Neches where updates were given.

Projected revenues for the district come in at $45.6 million with projected expenditures at $44.6 million for a surplus of roughly $629,000. The calculation, she said, is conservative and takes into account the passage of the TRE.

Without the TRE comes a very different picture with projected revenues of $41.9 million and expenditures of $44.6 million for a $2.7 million deficit.

Expenditure-wise, the district is considering a 1 percent raise for employees, which would cost about $331,000.

Drawhorn said the figure is closer to $300,000 because cafeteria workers and staff have their own operating budget.

 

Texas school districts are required to calculate two tax rates — the effective rate and the rollback rate — after the district receives the certified appraisal roll or certified estimate of taxable value from the chief appraiser.

Generally, if a school board adopts a tax rate above its rollback tax rate, it must hold an election to ratify the rate, according to Texas Association of School Boards.

PNGISD has the option to move 13 cents from the district’s interest and sinking fund, or debt service, part of the tax rate to the maintenance and operations portion and not increase the total tax rate. The district’s total tax rate is $1.44441 per $100 valuation, which includes an M&O rate of $1.04. If 13 cents are moved, the I&S would change to .27441 cents with the total tax rate remaining the same.

Superintendent Mike Gonzales simplified the issue saying it is like moving money from a savings account to a checking account. There is still the same amount of money; it’s just in different accounts.