Information About the ASATR Cliff
Groesbeck ISD is facing what many across the State are calling an ASATR (Available State Aide for Tax Reduction) cliff. Questions have been posed to GISD administration whether or not the Board and the District administration were aware in 2011 that TEA said ASATR would run out. The answer is yes. In 2011 the State Legislature assumed that increasing values and student growth would naturally make districts less reliable on ASATR. This worked with many districts, but about 200 in the State had the opposite happen. Either decreased student enrollment or decreasing values made it impossible for them to gap this large percentage of funds. If you noticed, one commonality between the districts that were hurt is that many rely on a power plant or minerals as a large part of their tax base. These values have plummeted. Also, many are rural so they haven't had a population explosion like suburban areas that could have made ASATR unnecessary.
Bryan Moore, Assistant Superintendent of Finance, since 2011 has consistently talked with the Board about ASATR funds and the impending doom if the legislature did not do something. The general public may be unaware due to the fact that they don't attend Board meetings or financial public hearings (held annually). It's also been discussed in the community facilities committee meetings, and it was listed under “Financial Facts” in an article the District put in the The Journal in March:
- Without legislative intervention, Available State Aid for Tax Reduction (ASATR) funds from the State to the District will end in 2017-18. ASATR funds are $4.3 million of the $17.2 million budget, also net of recapture.
To read more of this story, pick up a copy of Thursday's edition of The Groesbeck Journal! You can also subscribe online or call 254-729-5103.