GCISD Community,
I hope you are having a wonderful summer. It’s hard to believe how fast the weeks are going, and that it’s almost July. Although school is not in session, summer is an extremely busy time in GCISD, and I want to update you on some of the things taking place.
As I mentioned when I reached out in April to share a budget update, the Board will consider asking the voters to approve a three-cent tax rate increase in a Voter-Approved Tax Ratification Election, or a VATRE, planned to take place in the November 5 General Election. This three-cent increase will be made of “golden pennies.” Tax funds collected through these additional three pennies would stay within GCISD and not be subject to recapture, also known as “Robin Hood” in Texas, meaning that 100 percent of these funds would remain in the district. For the 2023-2024 school year alone, an estimated 22 percent ($31.33 million) of GCISD’s Maintenance & Operations tax levy will be sent back to the state in the form of recapture. Even with the three additional golden pennies from the passage of the VATRE, the total Maintenance & Operations (M&O) tax rate is projected to be lowered for the 2024-2025 school year due to an anticipated lower Maximum Compressed Tax Rate (MCR) from the Texas Education Agency, which is used in the calculation of the district’s M&O tax rate.
The primary reason for the need to have this election is that after five legislative sessions (the regular session and four special sessions), the lack of support from our Texas legislature and its inaction to spend any of the state’s historic surplus of $32.7 billion on public education has put districts across the state in a terrible financial position. Texas public schools have realized no increase to the basic allotment of funding per student since 2019, while during that same time period, we are all experiencing an inflation rate of 19 percent.
Last week, the Board approved the 2024-2025 general operating budget, which includes nearly $6 million in revenue for the district that would be generated through the passage of the VATRE. Failure to pass the VATRE would result in significant fiscal repercussions for GCISD. Click here to view the full budget presentation during the public hearing and click here to view the discussion and action taken on the adoption of the budget.
The adopted budget also includes a compensation plan with no salary increases this year. This was a difficult decision and is not a reflection of the acknowledgement and appreciation we have for the commitment and hard work of our staff. GCISD is proud to have given the largest raise last year with a 4% of the midpoint pay increase for all employees, and added a wellness day to the compensation package. This was a priority to place GCISD as a top competitor in the region, however, without any support from the state, it is unsustainable to continue raises into the 2024-2025 school year. Given this current situation, although the bonus structure outlined in my contract as superintendent includes the component of presenting a balanced budget and also stipulates various district academic achievements, I stand alongside our staff and will not accept additional compensation while our employees experience no salary increase.
To put the $6 million that the VATRE would generate in perspective, at an average $60,000 salary, these funds support the equivalent of 100 essential positions within our district. While the district has decreased positions over the last few years, it has been at a level that has enabled us to sustain all our current offerings. However, looking forward, maintaining this may no longer be feasible.
No campus or department will be exempt from potential cuts as we face the stark reality of projected deficits for the 2025-2026 school year and beyond if the VATRE were to fail, and while we’ve been able to avoid it thus far, the prospect of consolidating schools would also have to be under consideration. This decision to have this election is not taken lightly, and its implications are far-reaching.
Now more than ever, it is critical for all members of our community to become engaged. Your understanding and support during the election season are invaluable as we address this challenging financial situation together.
We also understand the concerns and uncertainties that this situation may bring. Please know that we share your concerns deeply. Our commitment remains steadfast in providing the best possible education for all our students, and there will be opportunities over the coming months for you to learn more about how you can help.
Looking ahead, we remain optimistic about state funding in the 89th legislative session, and will continue to advocate for financial support at every level. We encourage you to join us in those efforts and contact your elected officials, urging them to invest in public education. It is also important to note that regardless of the actions of our legislators, this VATRE will be crucial to the future of GCISD, as we proactively address our financial situation and explore opportunities for future raises.
Thank you for your attention and ongoing support. I hope you have a great rest of the summer, and I will be sure to keep you informed with any updates we have.
Dr. Brad Schnautz
GCISD Superintendent