The Lampasas Independent School District Board of Trustees on Monday called for a Tax Ratification Election after a public hearing and approval of a tax rate of $1.46 per $100 valuation -- 4 cents less than last year’s $1.50 rate.

The maintenance and operation rate of $1.17 is 13 cents higher than last year, and an election is required if trustees approve a budget that includes an M&O tax rate that exceeds $1.04.

Trustees James Briggs, Wesley Crow, Mark Bishop, Linda Floerke, Kirk Whitehead and Dan Claussen voted for the new tax rate and the TRE ratification, while Ron Farr cast “no” votes on both issues.

Election is set for Sept. 25.

If the initiative passes, the district will have the opportunity to lower its total tax rate from $1.50 per $100 valuation to $1.46, maximize state funding and generate an additional $1.7 million for operational costs, said Briggs, board president.

About $500,000 of that additional revenue would come from the state through its contribution of $1 in added funding for each $2 generated locally.

Briggs reiterated that by passing the TRE, the district will have access to state funds it otherwise would leave on the table.

Farr said he wants the total tax rate lowered to $1.33 and supports using $5 million of the district’s excess fund balance to run the district and give taxpayers a break. “I believe we have valid reasons for using that income,” he said.

Crow said though he supports the proposed tax rate, he does agree with some of Farr’s comments. “But my fear is that if we do that [use the excess fund balance], and we’re out of money, the state won’t help us any longer.”

Even with a successful September election, Briggs said the LISD will utilize some of its fund balance.

“In our five-year plan, we will actually use part of the fund balance each year along with part of the money we get if the TRE passes, and in four years we should have enough deficiencies corrected where we won’t have to keep dipping into it,” he said.

“When citizens passed the bond election, we took a big bite out of our deficiencies, but there are still so many things we need to do,” Briggs continued. “We are in a much better place facilities-wise than we were, and last year we cut $1.5 million out of the budget and we didn’t buy buses, and our transportation program suffered.

“I am afraid if the TRE fails, the district will go right back into the hole we are trying to get out of -- with salaries, our fleet run down and trying to keep up our facilities.”

Said Briggs: “We could do what Ron says for a little while, but we’ve been told we won’t have help from the state, at least from the next two legislative sessions -- and it’s not prudent for our board to assist the school district by hoping the state will bail us out.”

The LISD can actually lower its rate from $1.50 to $1.46 and generate $1.5 million more than what it currently brings in, making it a win-win situation for the taxpayers and the school district, Briggs said.

“We know people are struggling, and we know taxes aren’t popular,” he said. “It would be easy to sit here and say we’re just going to drop the tax rate to $1.33 and pray help comes down the line. But I don’t think it’s prudent. I don’t think we can survive.”

Farr said he believes the LISD’s deficiencies are addressed in a plan where it shows the fund balance being depleted. “But what’s not addressed is the $900,000 we would receive if we have staffing reductions over the first three years of the plan.”

With the fund balance sitting at slightly over $12 million, Farr said he believes over the next five years the LISD will be able to address each of the facilities issues outlined in the five-year plan.

Whitehead said he didn’t see where the LISD could make more cuts.

“At some point in time, and I think it already has, it’s going to affect the education of our kids,” he said. “I’m going to support this [TRE] because it comes down to the quality of education and transporting our kids on buses that won’t break down.

“The voters will have the decision on what we do. They will be the ones who have to decide. But we need this to educate our kids. We need more money to operate,” Whitehead said.

The LISD can’t take it all out of the excess fund balance, and nothing has been factored in or projected to cover unexpected occurrences in a district, Whitehead continued. “Maintaining a healthy fund balance is paramount. We’re looking down the barrel of a gun. I don’t like it either. And I can’t tell you we need to reduce the number of employees, then get mad when we can’t be a ‘recognized’ district.

“Can we get by? Yes, we’ve done it before, but we’re going to get to a point where we can’t do it anymore,” he said. “There haven’t been any spendthrifts here. We have an opportunity to maximize funding from the state, and we need to do it.”

If the LISD doesn’t pass the TRE, Crow said the district will lose thousands of dollars over the next few years.

Bishop said passing a TRE offers a school district the opportunity to gain additional funds.

“It’s just a good business decision.”