BROOKSHIRE, Texas (Covering Katy News) — Royal Independent School District voters will choose whether to send excess tax money to the state to avoid having valuable commercial property removed from their tax rolls in a special election May 3.
The ballot asks voters to approve purchasing "attendance credits" – essentially paying the state because the district collects more property tax than state formulas allow it to keep based on student enrollment.
"Basically, the way I explain it is our industry growth and tax revenue has outpaced our student enrollment," Superintendent Rick Kershner said. "But we have 14,000 or so homes under development right now, so that's why we're having to basically purchase credits of our attendance."
The district has 2,937 students, up 170 from last year, with projected growth of at least 10% next year.
The district says a "yes" vote would:
- Let the district keep all money for debt payments (called "interest and sinking fund" money)
- Keep all property within district boundaries for taxation purposes
- Maintain current tax rates or potentially lower them
"The voters are being asked to vote yes to where everything stays the same as it currently is," Kershner said. "If we collect more revenue than we're entitled to keep, we send the overage back to the state."
The district says a "no" vote would cause:
- The state to remove commercial property from the district's tax rolls, meaning the district could no longer collect taxes on that property
- Less money for classroom operations
- Reduced ability to borrow money for new schools
- Likely tax increases for remaining property owners
"If the voters say no, then there's a potential for a minimum of a 25% increase on the interest and sinking side of our taxes, and the state will come in and detach our annexed property up to about $2 billion worth of taxable value," Kershner said. The "interest and sinking" portion of taxes specifically pays for debt on construction projects like new schools.
The district's top 10 taxpayers make up about 29% of its tax base according to the school district.
Meanwhile, projects from a 2023 bond continue, including a new elementary school opening this fall.
"We've got that going," Kershner said. "The construction on the Agriculture Expo Center is on track and so is the transportation center."
Early voting runs April 22-29.
An information session is scheduled for 6-7 p.m. April 29 at the Royal Early Childhood Center in Pattison.