How does the reduction in I&S monies affect LEISD in the future – near term and long term?
The near-term effect of the decrease in LEISD’s I&S tax rate is the use of I&S fund balance to pay current debt. However, LEISD’s I&S fund balance and predicted future tax revenue is forecasted to be sufficient to pay both current debt and all authorized bonds. As far as long-term effect, taxpayers would need to approve any future bond which would raise I&S rates at that time.
What has changed that the I&S monies can be reduced and the M&O monies should be increased (why wasn’t this done earlier if it’s win-win)?
According to forecasted property values the I&S fund’s balance is currently at a level which can sustain the $.13 decrease in the I&S tax rate without using M&O funds. This would not have always been the case. Therefore, LEISD is able to generate additional funds to run the school’s operations on the M&O side without increasing the overall tax rate.
LEISD’s enrollment has grown substantially over the past 3 to 5 years requiring additional operating funds. It is estimated that the additional $.13 on the M&O side will generate an additional $4 million to help fund the District's operations.