At the October 17th regular monthly board meeting, Victoria ISD (VISD) trustees reviewed the results of an efficiency audit, comparing the district's finances and demographics with other Texas districts. This audit, as required by law, is part of the preparation for the Voter-Approval Tax Rate Election (VATRE), set for the November ballot.
On August 15th, VISD trustees called for a VATRE that, if passed, would generate approximately $7 million in additional annual funding. These funds are earmarked for the 2024-25 Compensation Plan, Version Two, designed to address the longstanding issue of staff compensation, which has trailed behind market rates for several years.
Jacob Bowman, CPA, from Patillo, Brown, and Hill, LLC (PB&H) presented the findings of the VISD Efficiency Audit at the board meeting. The audit compared VISD’s financial metrics to those of nine peer districts and state averages.
Key findings from the PB&H presentation include:
Over the last five years, the District's average General Fund operating revenue per student totaled $8,707, while its peer districts average totaled $9,548.
Over the last five years, the District's average General Fund operating expenditures per student was $8,363 per student, while its peer districts average was $9,179 per student.
VISD’s maintenance and operations tax rates, which fund the district’s general fund, including payroll, were an average of 0.2149 cents lower than the nine peer districts.
These figures highlight the financial challenges VISD faces in maintaining competitive staff salaries and school programs, with 75.7% of all VISD funds spent on payroll, compared to the nine peer districts that spend 76.4% and the state average of 77.8%.
Michelle Yates, Chief Financial Officer of VISD, emphasized at the regular monthly board meeting on August 15 that the proposed VATRE revenue is crucial for fully funding the new compensation plan. "This VATRE represents a pivotal opportunity for us to ensure our staff are compensated fairly, which is vital for retaining and attracting quality educators," said Yates.
Potential Impacts if VATRE Does Not Pass
Should the VATRE not receive voter approval, VISD will maintain the state-compressed Maintenance & Operations tax rate of .6969 and would maintain the 2023-24 Compensation Plan, Version One that the board approved on May 15th.
For more information about the 2024 VATRE and to view the Efficiency Audit in full, visit www.visd.net/vatre.