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| Where the other half lives in Travis County |
UPDATE: Tax swap proposal on hold (at least for now).
More.
In a move being billed as a way for Austin ISD to get around a high amount of "recaptured" funds under the state "Robin Hood" school funding scheme, the Austin City Council voted 6-4 this month to initiate part 1 of a "tax swap" plan with the school district.
But could the tax swap also be retaliation against the Texas Legislature's recent action to reign-in big city annexation powers? A Republican House member suggests it may be related (see below).
The
first step of the tax swap plan, which the City took on Aug. 10, raises the city’s property tax rate to 46.51 cents per $100 in appraised property value. It's a move that had bipartisan opposition, with Council members
Ellen Troxclair (R),
Jimmy Flannigan (D),
Delia Garza (D) and
Ora Houston (D, with fiscal conservative sympathies at times) voting no.
Step two: What's known as an interlocal agreement between the city of Austin and the Austin ISD to do the swap would have to be approved by both entities. This seems like a done deal -- Austin ISD will gladly lower its tax rates to keep
Robin Hood away and the City would provide some services to the school (which hearkens back to the days before Independent School Districts became the norm in Texas public education -- more on that little irony in a future article).
Here's
step three: That tax hike happens to be 2 cents higher than what's known as the "rollback rate" of 44.51 cents. It amounts to an increase of around 14 percent over the current budget year, by the way. That means the taxpayers, if they successfully circulate a petition with enough signatures (38,000, we understand), will defer final approval of the tax rate to the voters in a yet-to-be-scheduled rollback election (rumor has it on the March primary ballot).
Confused yet? Here's what it all boils down to: According to
KXAN-TV, it's a move that may save Austinites money, but every other resident in the non-Austin ISD portions of the city (see chart above) will be stuck with the full 14 percent tax hike (though Mayor
Steve Adler is promising perks for neighboring hamlets like funds for a youth center for Del Valle).