This 2-cent “swap” will result in about a $23M increase in state and local funding to FWISD. Why?
The 2-cent swap will allow the District to take full advantage of the state’s enrichment funding. The State guarantees every school district the same amount of revenue that the Austin ISD raises with a penny of tax rate up to $1.06. By swapping the 2 cents from the Debt Service Tax Rate to the M & O Tax Rate we gain an additional $17 million dollars from state funding on an annual basis. The additional $6 million comes from the local tax collections that use to go to pay debt that was shifted to now serve as revenue to fund maintenance and operations.