A bond is debt paid by taxpayers within LISD. There are two taxes associated with a school district: M&O and I&S. M&O (Maintenance & Operations) is used for salaries, bus fuel, books, utilities and regular, ongoing operating expenses. I&S (Interest & Sinking) is used to make debt payments for bonds. A bond works like a mortgage; a school district takes out a loan and makes an annual payment with the I&S revenue it receives. I&S taxes used for this debt can only go toward the specific projects outlined in the ballot. And, they are the only taxes that go directly to LISD. The state has no control over these taxes.
The only way a school can borrow money for new construction projects (that exceed $1M) is if voters approve it. The idea is to put more local control within the school district. If you want a new facility or major improvement, there has to be a vote (election).
The school district receives funding in two ways; Maintenance & Operations (M&O) and Interest & Sinking (I&S). Prior to 2005, all school districts were able to charge a tax rate of $1.50 and use those tax revenues as they saw fit (M&O or I&S). This allowed a lot of districts to save money and pay cash for large capital improvements. However, in 2005, the state changed the tax rate structure and set the M&O rate at $1.04 effectively. This, of course, reduced operating budgets for schools and put local taxpayers in more control of capital improvements. Essentially, if you want new buildings, you have to vote on it. The state recently lowered the M&O rate again, reducing it to $0.9630 for the 2020-2021 school year. The state effectively controls the M&O budget which does not allow the district to save more money.
I&S funds cannot be used for salaries and regular operating expenses. I&S taxes are the ONLY TAX DOLLARS THAT GO STRAIGHT TO LISD BOND PROJECTS. In short, the state controls M&O dollars, which no longer allows a district to save excess money and the state has no control over I&S taxes.
If the bond is not approved, the large capital improvements would not be funded.
A school district is not allowed to utilize bond proceeds to pay salaries.
If you are 65 years old or older and have filed your homestead exemption, the tax you pay for LISD for your home will not change. Contact your local CAD for more information.
Portions of the proposed additions at the High School and Elementary would serve as storm shelters to be used by LISD students and staff during inclement weather.
The LISD Board of Trustees and Staff will work together to determine the list of projects to be included if the Bond is approved. Some potential examples include paint, flooring, science lab renovation, etc. LISD has committed to transparency during this process. Please contact Dr. Carter for more information.
A Facility Committee comprised of community members, parents and staff worked together to determine whether a bond would be recommended, as well as the associated projects.
While Football was discussed by the Lipan ISD Facility Committee, the final recommendation to the Board of Trustees prioritized projects related to Academics. Football is not included in this bond.
The District is requiring all trades be public bid and for all responses to be brought back to the board for selection or approval.