1. “Educating Today’s and Tomorrow’s Future” “Improving LISD for Today and Tomorrow is an obligation for all citizens” Maintenance and Operations Tax Election 2001

2. In General School board cannot unilaterally increase the maintenance and operations (M&O) tax limit. The Texas Constitution and the Texas Education Code require that the question to establish a limit on M&O taxation be approved by the vote of the people.

3. District Strategic Goal Maximize resources and utilize sound fiscal planning 82% State Funds  $105,748,799 17% Local Funds  $21,650,741 1% Federal Funds  $923,500 FYI: Lowest Tax Rate in Region and Ranks #55 lowest among 1,000 in property values

4. Goal and Objective GOAL: Maximize resources OBJECTIVE: Provide adequate revenues to finance operating costs by: Allowing LISD to bring in more state GRANT funds at a ratio of $6 in state funds for every $1 in local tax funds

5. Today’s Situation Current tax rate for 2000: ---------  $1.28 Proposed tax rate for 2001:--------  $1.32 State Tax rate cap in 1955 ------  $1.50 Most District’s Cap---------------  $1.50 LISD Tax rate cap passed in 1969:  $1.35 LISD Proposed Tax rate cap 2001:-> $1.50 FYI: 1978 –100% taxable value 1986 -86 cents required to generate state funds

6. How Did We Get Here? Before 76 th Legislature: Tax rate for operations --------------------------  $1.02 After 76 th Legislature: Tax rate for operations --------------------------  $1.22  20 cent shift from the debt rate to the operations rate  Interest & Sinking collections are no longer eligible for state funding

7. Impact of Placing a Cap of $1.50 on M&0 tax rate If Approved: More state funds $6 to $1 More funds for student services More funds for teacher & other employees salaries More funds for inflation costs If not Approved: Less state funds, Less ability to meet financial obligations Less ability to compete with other districts for attracting and retaining teachers Less services to students

8. Call and Notice for M&O Election M&O tax election called on August 2, 2001 Election to be held Saturday, November 17, 2001 No immediate tax increase to $1.50 Over 65 taxpayers -exempt from additional taxation More funds at ratio of $6 per $1 spent by local taxes NOTICE OF ELECTION

9. Form of Ballot Proposition For“AUTHORITY TO LEVY MAINTENANCE TAXES UNDER CHAPTER 45, AS AMENDED, TEXAS EDUCATION CODE, AT A RATE NOT TO EXCEED $1.50 FOR EACH $100 ASSESSED VALUE ON TAXABLE PROPERTY IN THE DISTRICT.” Against

10. Who May Vote; Qualification of Voters. All resident, qualified voters of the District shall be permitted to vote at the M&O election.

11. Holding and conducting election Election date is Saturday, November 17, 2001, to be held at regular District polling places. Early Voting shall begins Wednesday, October 31, 2001, and ends Tuesday, November 13, 2001 (weekdays only). Main Early Voting location Webb County Justice Center, 1110 Victoria St. Branch Early Voting locations: Laredo ISD Board Room and Cigarroa High School.

12. Additional Information For Additional information, Contact Marco Alvarado, Communications Director --  At 795-3295 or Jesus J. Amezcua, Chief Financial Officer ---  At 795-3254