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September 5th, 2008
SMCISD now a Chaper 41 District: "Property Wealthy" according to State

San Marcos CISD Assistant Superintendent Mike Abild says that the District has recently been notified of its status as a “Chapter 41” (property wealthy) school district for the 2008-2009 school year. This designation is given to any school district in the state with a property wealth per student in Weighted Average Daily Attendance (WADA) of $319,500 or more (the “equalized wealth level”). The District’s 2008-2009 wealth per student is currently estimated to be approximately $342,000. According to Abild, a district with property wealth above the equalized wealth level may use any of the following five options to reduce its wealth per student:

1. Consolidate with another district
2. Detach property
3. Purchase attendance credits from the state
4. Contract to educate nonresident students
5. Consolidate tax bases with another district

“An election is generally required for options three or four,” says Abild. “However, rules allow a district that is notified of its Chapter 41 status for the first time in 2006-2007, or later, to forego the requirement to conduct an election if its state funding for the school year is expected to exceed its recapture costs-i.e. Robin Hood payments-for the same year.”

Since the District’s estimated wealth per student for 2008-2009 ($342,000) will not be above the equalized wealth level at which Robin Hood payments actually begin ($374,200), its designation as a Chapter 41 school district will have no effect on the 2008-2009 budget. However, if the District were to exceed a General Fund tax rate of $1.06 (its “compressed rate,” plus six “super pennies”), it would be required to select one of the options above (or agree to have its state funding offset) and begin making Robin Hood payments.

Abild adds that the District’s designation as a Chapter 41 district will have no effect on the District’s 2008-2009 budget, but will have to be taken into consideration and addressed when developing future budgets and tax rates.

Submitted by IRIS CAMPBELL
Public Information Officer – San Marcos CISD

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0 thoughts on “SMCISD now a Chaper 41 District: "Property Wealthy" according to State

  1. That’s a lot of money for such limited return. I’m interested to see which option we choose, but I am more interested to hear again why it is that we have graduation rates and SAT scores that would lead one to believe we live in a much poorer district.

    What exactly are we getting for that money? I suggest that we purchase credits or detach property, rather than subject any more students to our mediocrity.

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