Based on wealth equalization (i.e., Robin Hood), the growth in PfISD property value doesn't generate additional revenue for PfISD, even though PfISD's property values have grown substantially. As a result, the funding the district receives from the state will go no higher. The VATRE allows the district to increase the tax rate on the M&O side above the "voted-approval tax rate" in order to generate additional revenues that PfISD can keep and help pay for daily operating costs. Notwithstanding the increase in the tax rate associated with the VATRE, the District's overall tax rate will decrease in this fiscal year.

The M&O tax rate would be increased by approximately $0.04. However, the I&S tax rate is going down by $0.10. The District's M&O rate was lowered by 6 cents due to compression as a result of HB3. Therefore, homeowners will still see an overall decrease of $0.12 in the overall tax rate in this fiscal year.

If approved, this ballot item would maximize the district’s Maintenance and Operations (M&O) funding allowed under HB3, adding approximately $6.9 million.

1) PfISD may be required to increase class sizes.

2) PfISD's funding for operations will be limited, reducing funds available for the programs that Pflugerville ISD students and parents have come to expect (CTE, Fine Arts, Athletics, Gifted and Talented etc.)

If a school district chooses to adopt a tax rate lower than the Voter Approval Tax Rate (VATR), the district will lose revenue when you consider both state and local dollars net of recapture. The legislature has put formula provisions in place to ensure that tax rates below the VATR result in cuts to overall revenue.

The No New Revenue Rate (NNR) is designed to calculate the tax rate that would produce the same tax levy in the coming year as was available to the district in the prior year. The no-new-revenue tax rate is intended to give taxpayers an apples-to-apples understanding of the change in tax levy, and only considers local collections and not the impact of recapture or state aid. The Voter-Approval-Tax Rate (VATR) is the tax rate a school district may adopt without an election. If the Board of Trustees adopts a rate that exceeds the VATR, a voter-approval-tax-rate election (VATRE) must be called. The NNR does not impact the VATR.