Louise ISD trustees debating finances after taxes rollback
By BRENDA SOMMER bsommer@leader-news.com

Louise ISD trustees have a busy night ahead of them tomorrow as they adjust their budget to a lower tax rate after residents voted to roll back taxes last week.

Louise school district voters on Nov. 6 turned down a tax rate higher than the state recommended when the proposed rate failed by a 99-90 tally.

Although a tax rollback election, the rate LISD trustees had hoped voters would approve was actually 16 cents per $100 valuation lower than last year's rate of $1.47 per $100 valuation. The state requires a rate of $1.20, which triggered the rollback election.

The LISD board voted to set the tax rate at $1.31, but after the rollback that rate will decrease to $1.20. At that tax level, the district will have about the same amount of tax revenue it spent the previous year: $4.2 million.

Since the election, LISD Superintendent Andy Peters has been working to find alternatives for trustees to consider as they look to cut $300,000 from their proposed budget. The district has been using a budget set at the lower rate since the fiscal year began Sept. 1.

At tomorrow night's special called meeting, trustees will get busy readjusting their priorities.

"I'm working on various contingency plans," Peters said yesterday. "We are going to go down the shopping list of issues and concerns. Obviously, softball and track and ag barns are probably off the table for now, but I will encourage the board to discuss these issues and tell me which ones they want me to concentrate on finding alternative solutions."

Peters, who is just back from seeking grant funds in Washington, D.C., said money is available for some projects, though those projects won't necessarily be the district's top priority.

"The issue I have to get the community and board members to understand is there are often funds available from outside sources, but those sources may not want to pay for our priorities, so we have to be flexible," he said.

A good example of that will be discussed at tomorrow night's meeting, when trustees will look over bids to put airconditioning in the physical education building.

In July, the district received a $200,000 federal grant for physical education equipment and teacher training.

Besides training PE teachers, the money can only by used for physical education equipment for students in all grades, specifically targeting elementary students. The grant funds cannot be used for athletics, buildings, sports fields or coaches.

Unused dressing room and storage space in the PE building is being refitted as a fitness center to contain the grant-funded equipment, but the space has never had air-conditioning.

"The board has already allocated those funds - $70,000 total for all of the fitness center upgrades," Peters said. "I have already laid some groundwork to get some grant funds to repay the district for a small portion of the $70,000.

"In addition, if the fitness plan improves student health and we document everything just right, we are guaranteed another $100,000 to continue the program. Other than the initial $70,000, the costs are paid for 100 percent out of the grant."

Peters said having a fitness center does fit into improved education.

"It will primarily be used by students to meet their health/ physical education requirements. It can also be used by the community as well - especially after school," he said.

"The problem of kids not being in shape is that we don't have things in Louise they like to do, so this grant helps change that. Second, research shows that when kids are active they think better, so I'm hoping by taking these grant funds and establishing a state-of-the-art fitness center, more of our students will become active and physically fit."

The board will also see if it's possible to buy a new bus, something not in the district's smaller budget.

"We do need to purchase a bus to keep our fleet current and safe," Peters said. "I'm actually looking at grants for that too. We may 'go green' if I can get some funds to pay for it."

The board could pay for a bus with its fund balance, which at the end of last school year was at $1,854,000, about 44 percent of the district's annual $4.2 million budget.

"The fund balance comes from funds not spent and interest made on our investments," Peters said.

"Ideally, the Texas Education Agency says you should have three months of operating expenses in the fund balance, which would be a bit over $1 million. However, any wise CEO would recommend six months' balance which would be about $2 million.

"The rollback doesn't directly affect the fund balance unless we need to use it. For example, if the board decides we need the bus, we mostly will have to dip into the fund balance to pay for it."

Peters plans to recommend trustees ditch plans to match money employees place in a newly offered employee retirement savings account, one similar to a 401(k) plan.

"The 457 plan is off the table as far as I'm concerned," Peters said. "This was an idea we had to provide some incentives to our staff to stay in Louise. It is on the agenda, but I won't recommend it at this time."

The board meets at 7 p.m. Thursday, Nov. 15 in the district's meeting room, in the administration building at 408 Second Street in Louise. Board meetings are open to the public.