Spring Branch ISD ranked third-lowest overall
in a recent comparison of bonded debt per
student among Houston-area public school
districts.
Based on August 2006 data, the district’s
Financial Services Department found that
Spring Branch carries a debt per student
of about $11,326, placing it near the bottom
among 11 regional public school districts
and their enrollments.
Only Deer Park and Fort Bend ISDs have
a lower debt rate per student, while eight
other school districts carry far higher
levels of debt, beginning with Katy ISD’s
$19,819 per student burden. Following Katy,
in order, are Humble, Conroe, Clear Creek,
Spring, Tomball, Cypress-Fairbanks and Galena
Park ISDs.
Looked at from another perspective, SBISD
also ranked third-lowest overall in a recent
comparison of debt service tax rates. As
of October 2007, SBISD’s debt service
rate of 19.5 cents is lower than only Aldine
and Houston ISD, according to a recent district
survey.
SBISD’s current and projected rates
for debt service, known as Interest & Sinking,
also compare favorably to other districts,
based on rate data compiled by the district’s
Financial Services Department.
Debt Service
Tax Rates chart
Across all Texas, Houston ISD has held
the No. 1 spot since 1999 for highest debt
service with more than $3 billion in total
debt, the Texas Bond Review Board reports.
As of August 2006, quickly expanding Cypress
Fairbanks ISD held the No. 3 spot statewide
with more than $2 billion in total debt;
Katy ISD ranked eighth overall with about
$1.3 billion and Fort Bend ISD was 10th
in the state with $1.15 billion in total
debt. Spring Branch, by comparison, has
about $378 million in total debt.
Such good news about bond debt has a history
to tell: The district’s Board of Trustees
has held the line on taxes, including the
debt service portion of the tax rate, for
many, many years now.
After Spring Branch overwhelmingly approved
a $250 million Facility Improvement Plan
bond issue back in 1999, it was estimated
that completion of renovations and building
projects would take 10 years and increase
the district’s debt service by 9 cents
to pay off bonds.
In fact, the Board of Trustees held the
line on taxes and the total school tax rate
remained the same for five years – from
2002 through 2006. Due to favorable interest
rates, timely Board action on debt refinancing
and changes in property values, the debt
service portion of the tax rate increased
only by 4.5 cents during a six-year period.
“In our view, having the third-lowest
bond debt per student is a powerful statement
and a testament to strong fiscal constraint
by all of our Board of Trustees,” Superintendent
of Schools Duncan Klussmann says.
Unlike most of the district’s budget,
bond funds are not subject to the state’s
current Chapter 41, or “Robin Hood,” funding
formula. Millions of Spring Branch tax dollars
have been sent elsewhere due to this ongoing
state legislation, but 100 percent of any
bond funds approved by district voters will
remain in SBISD to directly benefit students.
SBISD taxpayers are expected to benefit
from a 34.65 cent reduction when the district’s
Board of Trustees adopts its proposed 2007
school tax rate on Oct. 29. The much lower
rate is expected to be adopted after a final
public hearing is held.
When adopted, SBISD’s tax rate will
fall to its lowest level since before 1994.
The new proposed school tax rate is $1.285
per $100 assessed value, down from a $1.6315
rate. These reductions are due to changes
in public school financing enacted by the
Texas Legislature.
Spring Branch residents who are 65 years
or older, or disabled, and who qualify for
homestead exemption and file for the Over
65 or disabled exemptions will also see
a decrease in their school tax rates. Tax
levies for these homeowners, in fact, will
be reset this year at an all-time lower
level and will not increase in the future.
These reductions for seniors and disabled
homeowners will occur as a result of a constitutional
amendment approved by state voters in May.
posted 10-26-07
