Austin school board hikes taxes, plans to send half of revenue back to the state

The Austin school board unanimously approved Thursday a tax rate estimated to increase taxes for homeowners by 2%.

The new rate of $1.0617 is lower than last year's and the district's lowest in 20 years, but it will translate to an average tax increase of $276.12 for the average home valued at $472,823, according to district estimates shared earlier this month.

That's because average home values in the district increased by an estimated 10% over the past year.

Homeowners could have seen their taxes increase by $469.97, but state lawmakers passed a 2019 law directing more state money toward local school funding.

The district expects to collect almost $1.5 billion from local taxes for the upcoming fiscal year, but it is expected to send 49% of its revenue to the state under a long-standing school finance formula.

More:Average Cedar Park homeowner will pay $115 more in taxes in approved budget

The district also approved plans to finalize the budget for the 2022-2023 fiscal year by next June.

Earlier this month, Superintendent Stephanie S. Elizalde said the district is bracing to cut jobs by leaving vacancies unfilled because of financial constraints and lower than expected enrollment, which helps determine state funding for schools.

In June, the school board approved a $1.8 billion budget with a $43 million deficit, with plans to use money from reserves to cover COVID-19 expenses, among other things.

On Thursday, Chief Financial Officer Eduardo Ramos told the school board the district needs to avoid spending more of its reserves or it could risk lower bond and financial ratings.

More:Round Rock adopts budget, tax rate for upcoming fiscal year