Chapter 41 PropositionThe next general election is just around the corner. On the ballot you will see a proposition related to our school district’s funding known as Chapter 41 recapture.
Often referred to as "Robin Hood,” the state’s school funding system "recaptures" funds from the property-wealthy districts and redistributes them to the property-poor districts. Districts with a property value that is equal to or greater than $514,000 per WADA are considered property rich. Because property values in Georgetown are at $531,231, our district was required to put this proposition on the ballot.
The Chapter 41 Proposition must be written in accordance with state law and that means voters will be asked to decide whether to authorize future payments from GISD to the state by purchasing “attendance credits.” The ballot language will read:
“Authorizing the Board of Trustees of Georgetown Independent School District to purchase attendance credits from the State with local tax revenues.”
If voters do not approve the proposition to purchase attendance credits, TEA will detach about $1 billion worth of property within our district and the taxes of these local property owners in GISD will be paid to other districts in our State. That means we would have less property values to generate revenue for our required bond payments, which would result in higher tax rates. Purchasing attendance credits is the least expensive option that allows us to keep more local tax values in GISD.
Next General Election is May 6, 2017
Early voting is April 24-May 2
To view a list of voting locations, please visit https://www.wilco.org/elections.Frequently Asked QuestionsHow are districts determined to be property wealthy?
A district becomes property wealthy due to the amount of taxable property value that is above the allowable State funding threshold for public school districts. The relative wealth of the school district is measured in terms of the taxable value of property that lies within the school district borders divided by the number of students in weighted average daily attendance (WADA). It is not determined by rooftops, housing developments, or personal income levels.What funds are used to pay recapture?
Funds are recaptured from a district’s local Maintenance and Operations (M&O) tax revenue. M&O revenue is used to pay salaries, utilities, furniture, supplies, food, gas, etc.
What options are available for a district to pay recapture? A district has five options available to reduce its property wealth per WADA (pay recapture). Options 1 and 2 would not require an election. Options 3, 4, and 5 require an election. However, only Option 3 is included on the May 6 ballot. Option 3 is the least expensive and most beneficial method for paying recapture payments.Option 1: Consolidate with another district
Option 2: Detach property
Option 3: Purchase attendance credits from the state
Option 4: Contract to educate nonresident students from a partner district
Option 5: Consolidate tax bases with another district
Can GISD lower its property values below the “wealth” threshold?
No. The Board of Trustees does not establish property values.
Can GISD change its tax rate to avoid recapture payments?
- If the tax rate is raised, the District pays more recapture
- If the tax rate is lowered, the District would still owe recapture to the State and would simultaneously lose millions of dollars necessary to support the operations of the school district
What happens if the proposition fails?
- A failed election would trigger an irreversible detachment of properties that would be attached to other school districts.
- Of the District’s $9.3 billion taxable values, over $1.0 billion would be assigned to other districts.
- Some taxpayers in GISD would pay taxes to other school districts