Taxes

Getting a chance to hear Texas Public Policy Foundation education policy analyst Brooke Dollens Terry speak at last night's Austin Townhall Conservatives Meetup was fortuitous because I learn this morning that AISD bureaucrats are looking to raise property taxes this year in a referendum that may go to voters in November:

The Austin school district is proposing a $862.5 million 2008-09 budget, 8.8 percent larger than the current budget. The plan calls for an operations tax rate of $1.0765 per $100 of assessed property value. Including the portion of the rate used to pay off debt, the overall rate would be $1.1995.

The district is already at the highest operations tax rate, $1.04, that can be set without going to the voters for approval in a rollback election. Because property values on average went up this year, staying at that rate would mean more revenue as tax bills increase. However, new school finance laws require that Austin send more of that revenue to the state to give to property-poor districts, $61 million this year. So to raise additional money that the district can keep, administrators are seeking the tax rate increase.

AISD's proposal, which includes a 3% pay raise for teacher salaries, would raise property taxes on an average-priced home ($233,324) in Austin by about $340 per year, but the union wants more:

Teacher groups and a school board subcommittee met Tuesday to discuss the teacher salaries and benefits after reaching an impasse in negotiations.

Education Austin President Louis Malfaro said the Fort Worth, San Antonio, Dallas and Houston districts pay their teachers $5,000 to $6,000 more than Austin on average. He said teacher pay in Austin lags behind that of other Central Texas districts by up to $2,500. His organization, which represents more than 4,000 local teachers and staff members, wants a 5 percent salary increase, family health coverage and a $10 minimum wage for hourly employees.

The union's proposal would raise property taxes on an average-priced home by more than $430 per year.

Here's an idea: we'll give you the money, but reduce the across-the-board rate of increase and use the rest to reward teachers who perform.

Update: somewhat surprisingly, the Austin American-Statesman has come out against the tax increase:

Both proposals are too high. The union's plan to squeeze 8 more cents from taxpayers is particularly egregious, given the economic slump in which many people are struggling to pay for basics — gasoline, housing, utilities and food.

Give them — and the rest of us — a break.

h/t: Texans for Fiscal Responsibility