About Proposition B
About Proposition B
Proposition B: RepaymentOver the last 10 years, the district borrowed money to address emerging facilities and maintenance needs. This debt currently totals $8 million, and the district is drawing $1.6 million per year from the daily operating fund to repay the loan. Prop B would allow the district to pay back the loan using bond funds, thereby saving $1.6 million per year in the daily operating fund.
School districts in Texas are required to maintain a minimum fund balance of three months of operating expenses. For Bay City ISD, that amounts to $11.1 million. The district is projecting a fund balance of less than half that amount next year, with ongoing depletion projected in subsequent years. Prop B would provide the district with funds to address the projected deficit.
Debt Repayment
State Compression and Flat State Funding
Flat state funding, combined with inflation, and state-imposed reduction of the local school tax rate, have resulted in a $15.7 million loss of revenue to the district over the last six years, producing a budget deficit and dwindling fund balance.
School districts in Texas are required to maintain a minimum fund balance of three months of operating expenses. For Bay City ISD, that requirement is approximately $11.1 million. The district is projecting a fund balance of less than half that amount next year, with ongoing depletion projected in subsequent years.
Through House Bill 2, the state provided $55 per student, resulting in a $1,245 gap between state funding and the per-student cost of education. State-mandated tax rate compression reduced Bay City ISD's M&O tax rate by 32 cents from 2020 to 2025, contributing to a cumulative revenue loss of approximately $15.7 million. The M&O tax rate funds daily district operations, including student programs, safety and security, and staff salaries.