An alternative to ACC annexation
There's a better way: the Pflugerville Promise.
The city covers ACC's $201-per-credit-hour out-of-district fee on every class a local student passes, for about a seventh of annexation's cost, reviewed every year instead of forever. You can want Pflugerville students to attend ACC affordably and still vote no.
The plan, in short
The Pflugerville Promise: a City–ACC completed-credit agreement.
The City of Pflugerville partners with Austin Community College to cover the $201-per-credit-hour out-of-district fee for local students committed to finishing. Every Pflugerville resident qualifies, whether a recent graduate or an adult, along with Pflugerville ISD graduates just outside the city who start ACC right after graduation. The city pays only for credits a student actually passes, and only after grants and scholarships. That brings the cost to about $1.9 million a year, a fraction of the roughly $23 million a year in new ACC property taxes annexation would bring.
Voters approve the funding directly, at about $62 a year on the average Pflugerville home, compared with ACC's own estimate of $407 a year in ACC taxes on that home under annexation. No new taxing district is created, and the city keeps an off switch: the council sets the budget each year and can adjust the rules or end the agreement with 90 days' notice.
How it is legal
Buy the same thing directly, and keep the off switch.
Texas Education Code 130.0081 lets a community college contract with “any person, including an employer, political subdivision, or other entity” to provide educational services, and students covered by that agreement “are entitled to pay tuition and fees at the rate applicable to a student who resides in the district.”
So the city covers the difference and Pflugerville students pay the in-district rate. ACC lists the city as each student's sponsor through its existing Sponsored Billing process, bills the city each term, and receives the same money per student it receives today, only without a new taxing district, without a permanent tax, and with the freedom to adjust or end it in any budget year.
Texas Education Code Section 130.0081 and Section 130.0032 (Sponsored Billing).
Who qualifies
Two tracks, one set of rules.
Dual-credit and Early College high school courses already carry no out-of-district fee, so the Promise begins after graduation. Both tracks get the same time limits and credit caps.
Any Pflugerville resident
A graduate of any public, charter or private high school, homeschool or GED program, or an adult who lives in the city. Start any fall or spring semester. Track A students keep the benefit while they live in the city.
Up to 60 city-paid credit hours over 3 years for an associate degree, certificate or transfer; up to 120 over 5 years once accepted to an ACC bachelor's program.
Pflugerville ISD graduates
Graduates of any Pflugerville ISD high school who live in Pflugerville ISD but outside the city limits. Start the semester right after graduation, the fall after a spring graduation, with a summer start optional. Track B students keep the benefit while they live in Pflugerville ISD.
Same time limits and credit caps as Track A. The start-right-away rule ties the city's support for non-residents to the pipeline from local high schools.
Every participant also:
- Completes the FAFSA each year, or the TASFA for students who cannot file a FAFSA.
- Stays continuously enrolled through their time window, with at least one ACC credit course every fall and spring unless an exception applies. Summer courses are optional and covered too.
- Passes each course they take and meets ACC's satisfactory academic progress standards.
- Shows residency at the start and each year after, with a utility bill, lease or appraisal record.
What students get
Room to work, time to finish, and no loans.
$4,824 to $6,030 a year. A full-time student taking 12 to 15 credits a semester saves that much, because the $201 out-of-district fee is covered on every class they pass. That is $603 on a typical three-hour class.
No out-of-district fee
The $201 per credit hour is covered on every course a student passes. Paired with ACC's Free Tuition Pilot, a recent graduate who starts the fall after graduation and passes every class owes no tuition and no out-of-district fee.
Room to work and study
There is no minimum course load. One class each fall and spring keeps a student in the program, so students can work while they study.
Time to finish a degree
Three years and up to 60 credits for an associate degree, certificate or transfer, or five years and up to 120 credits once accepted to an ACC bachelor's program.
No loans required
Grants and scholarships apply first, and the city covers the remaining fee, so no student has to borrow to take part.
Side by side
Annexation vs. the Pflugerville Promise.
Same goal, the in-district rate for local students. Two very different deals.
| Annexation | The Pflugerville Promise | |
|---|---|---|
| Cost per year | about $23 million | about $1.9 million |
| Who pays | Every property owner and renter, forever | The city budget, approved by voters |
| Paid to | ACC | ACC |
| What the student pays | $85 per credit hour | $85 per credit hour |
| What it buys | Enrollment, finished or not | Only credits a student passes |
| When it ends | Never | Any year we choose |
| If it isn't working | Nothing we can do | Adjust it or stop, 90 days' notice |
| Requires a permanent tax | Yes | No new taxing district |
What it costs
About $1.9 million a year, 8 percent of the annexation tax.
The starting point is ACC's own records for students who live in Pflugerville ISD but outside the ACC taxing district: in 2024–25, fee-paying students completed 13,949 credit hours, or $2.80 million in out-of-district fees. Of that, about 7,970 hours fall under the graduate tracks, which all qualify, and the rest are mostly adults. Only city residents qualify as adults, which cuts eligible adult hours to about 2,820.
| Scenario | Assumption | Graduate hrs | Adult hrs | Annual cost | Share of ACC tax |
|---|---|---|---|---|---|
| Low | 75% of graduate hours and 50% of city adults' hours qualify | 5,978 | 1,409 | $1.48 M | 7% |
| Middle | 85% of graduate hours and 65% of adult hours, each plus 10% from new students | 7,453 | 2,014 | $1.90 M | 8% |
| High | Every eligible hour qualifies, plus 25% from new students | 9,964 | 3,521 | $2.71 M | 12% |
- It pays for finished work. The city pays only for credits a student passes. Of Pflugerville ISD-area students who started ACC in fall 2017 to 2019, 58% neither earned an award nor transferred within six years; this design directs money to the students who finish.
- Aid comes first. Grants, scholarships, waivers and the Free Tuition Pilot pay before the city does, so the real cost runs below these figures, which are drawn before aid is applied.
- A cap holds the line. A council-set annual cap, for example $2.0 million, keeps spending to budget. If claims would exceed the cap, continuing students are served before new ones.
- It stays a bargain as it grows. Even the high scenario, with a quarter more students, lands at $2.71 million, about 12 percent of the annexation tax, which stays $23 million no matter how many students enroll.
ACC public-records response for Pflugerville ISD students outside the ACC taxing district, 2016–2025; projected 2026 ACC levy on the Pflugerville ISD area not already in the district, about $0.1036 per $100 of value; ACC published fee schedule.
How the city pays
Aid first, then the city covers passed credits only.
ACC runs eligibility and billing; the city approves the budget and pays invoices. City staff never handles student records.
Aid first
Grants, scholarships, waivers, the Free Tuition Pilot, and employer or Capital IDEA payments go toward tuition, fees and the out-of-district fee. Loans and work-study are not counted.
City pays at registration
ACC lists the city as each student's sponsor, so students pay nothing for the out-of-district fee when they enroll. Students sign up for the program before registering.
Invoice after census
ACC bills the city each term after the census date, listing each student, course and the hours. The city pays within 30 days. A course dropped before census is refunded.
True-up after grades
For any course not passed, whether withdrawn after census, failed, or left incomplete, ACC moves the city-paid fee back to the student's account and credits the city on its next invoice.
Repayment
ACC collects that balance from the student under its normal rules, including a registration and transcript hold until it is paid. The student owes ACC, never the city.
Warning term, then exit
The first course not passed puts the student on a warning term; they stay in the program. A second course not passed ends participation the next semester, unless an exception applies.
In-district tuition is $85 per credit hour including fees, covered by aid, the Free Tuition Pilot or the student. The program fills the fee gap for families who earn too much for a full Pell grant. Because ACC's completed-hours count includes F grades, the agreement defines completed as passed.
Staying eligible
Stay enrolled, pass your classes, keep the benefit.
Students keep the benefit by staying continuously enrolled through their time window, one class each fall and spring is enough, and passing their courses. Each student gets one warning term. Credits already earned and paid always stay paid.
- The clock. The time window starts with the first semester in the program and runs continuously, except during an approved pause. A student accepted to an ACC bachelor's program moves to the five-year window.
- Not passing a course. Dropping before the census date has no effect. A withdrawal after census, a non-passing grade, or an unresolved incomplete means the student repays the city-paid fee for that course. The first time, the student stays in on a warning term; a second time ends participation the next semester, unless an exception applies. A skipped fall or spring without an approved exception also ends participation.
- When it ends. Participation ends at 60 city-paid credits or three years (120 credits or five years once accepted to a bachelor's program). It also ends when a Track A student moves out of the city or a Track B student moves out of Pflugerville ISD.
- Coming back. A student who leaves may return with an approved exception. Credits the city already paid count toward the same cap, and the time window resumes where it stopped.
Exceptions. With an approved exception, a student may keep eligibility, pause the window for up to two semesters, or return after leaving. Exceptions cover a serious medical condition of the student or an immediate family member, military service or deployment, death of an immediate family member, pregnancy, childbirth or adoption, or another documented event outside the student's control. ACC's financial aid office reviews requests under criteria written into the agreement.
Funding and voter approval
Voters approve it at the ballot box.
The program is funded by a city tax rate increase that voters approve. The city's current rate leaves no room for a new $1.5 to $2.7 million program, so any rate above the voter-approval rate goes to an election, and the voters decide.
| Scenario | Annual cost | Added city rate / $100 | Average home per year |
|---|---|---|---|
| Low | $1.48 M | $0.0127 | $48 |
| Middle | $1.90 M | $0.0163 | $62 |
| High | $2.71 M | $0.0232 | $88 |
On the average Pflugerville home, the middle case is about $62 a year, less than one-sixth of the $407 a year ACC estimates the same home would pay in ACC taxes under annexation.
- Timing. The council adopts the higher rate by a record vote, separate from the budget, in time for a November 2027 election. Tax bills go out that fall, and the first ACC invoice comes after the spring 2028 census date, so the program can start spring 2028.
- Dedication. The ballot states the purpose of the increase. The council pledges the added revenue to the program by resolution and reports on it each year. Under the current formula, an approved increase carries into later years, so the program does not need a new election each year.
- Other sources to explore. Pflugerville Community Development Corporation (Type B sales tax) funds for career-center projects, and a matching gift from the Pflugerville Education Foundation, could reduce the rate the city needs.
Rates use the city's 2025 taxable value of $11.68 B, and the average home at a reported $378,234. ACC estimates the average home would pay $407 a year in ACC taxes if annexed.
Benefits for Pflugerville
A fraction of the cost, and we keep control.
A fraction of annexation's cost
The program runs about $1.5 to $2.7 million a year before aid, roughly 7 to 12 percent of the $23 million a year in new ACC property taxes annexation would bring.
Every dollar buys a finished course
The city pays for passed credits. With 58% of local ACC starters neither earning an award nor transferring in six years, this design rewards the students who finish.
We set the budget each year
The council sets the cap each year and can adjust the rules or end the agreement with 90 days' notice. Under annexation, the ACC board, not Pflugerville, sets the tax rate every year.
No new taxing entity
Voters approve the funding at the ballot box, and no new taxing district is created. The average home pays about $62 a year, less than one-sixth of ACC's $407 estimate.
A stronger local workforce
Credentials and transfer credits stay with residents who live and work in Pflugerville.
Legal compliance review
Built to fit current Texas law.
The recommended structure is a Chapter 380 economic development program, run by ACC under an interlocal agreement and funded by a voter-approved tax rate. Here is how each requirement is met, and what the council must do to adopt it.
| Requirement | Law | How the plan meets it | Status |
|---|---|---|---|
| City authority to spend | Local Gov't Code 380.001; home-rule powers | The council creates a Chapter 380 program to build the local workforce; 380.001(b) lets ACC run it and lets the city accept contributions from PfISD or the Education Foundation. | Council action |
| Contract with ACC | Gov't Code 791.011 | Both governing bodies approve an interlocal contract stating its purpose, terms, rights and duties, resting on the catch-all for functions both parties share (791.003). The city pays from current revenues at ACC's fee. | Council action |
| No gift of public funds | Tex. Const. art. III, §52; KP-0204 three-part test | Public purpose: a stronger local workforce. Controls: residency, FAFSA, last-dollar payment, passed credits only, credit caps, reports and audit. Return: degrees and credentials earned by residents. The council adopts written findings. | Council action |
| No lending of public credit | Tex. Const. art. III, §52 | The city pays ACC, and ACC credits the city for courses not passed. Students owe any repayment to ACC, never to the city. | Complies |
| Graduates outside city limits | Art. III, §52; 380.001(a) | Chapter 380 reaches the city's extraterritorial jurisdiction. For graduates living elsewhere in PfISD, the school district or the Education Foundation funds their share, or the council adopts specific findings. | Attorney review |
| ACC tuition rules | Education Code 130.0032 | ACC's rates do not change. The city pays as a sponsor through ACC Sponsored Billing, which accepts government agencies. | Complies |
| Tax rate election | Tax Code 26.05 and 26.07 | The council adopts the rate by a record vote of at least 60% of members, separate from the budget. The ballot states the purpose. If the measure fails, the rate falls back to the voter-approval rate. | Council action |
| Student privacy | FERPA | Students sign a consent at sign-up. ACC handles records and exception requests, and public reports use totals. | Complies |
| Campaign communications | Election Code 255.003 | City resources give only factual information about the election. Any advocacy is paid for by a campaign or PAC, not city staff, email or social accounts. | Complies |
| Council deliberation | Open Meetings Act, Gov't Code ch. 551 | Council members discuss the proposal in posted meetings, not in social media threads or chains of one-on-one talks. | Complies |
| Future law changes | 2027 legislative session | A 2025 bill to cut cities' revenue cap failed. The Legislature meets January to May 2027 and could change tax-election rules before the vote. | Monitor |
This review is a roadmap, not legal advice; the city attorney should confirm each point before the council acts.
Administration and agreement terms
ACC runs it; the city approves the budget.
ACC identifies eligible students, verifies residency and grades, decides exception requests, and invoices the city each term. The city reviews invoices and promotes the program with Pflugerville ISD, the library and community partners. Proposed terms:
- Term. One year, renewable each year by mutual consent, with a council review after three years.
- Start. Spring 2028 semester, after a November 2027 voter-approval election and the 2027 tax collections.
- Funding. A voter-approved rate increase, pledged to the program by council resolution, with an annual not-to-exceed cap. Payments come only from current-year funds appropriated by the council.
- Privacy. ACC shares student-level data with the city only as FERPA allows, using a signed consent from each student at sign-up. Public reports use aggregate counts.
- Reporting. A report each term and a public annual report to the council: students by track, hours paid, pass rates, students lost to each eligibility rule, degrees and certificates earned, transfers, and total cost.
- Audit. The city may audit invoices against ACC records once a year.
- Termination. Either party may end the agreement with 90 days' notice. Students already enrolled finish the current semester under the old terms.
- Annexation. If the area is ever annexed into the ACC district, residents stop paying the out-of-district fee and the agreement ends on the date the fee no longer applies.
This already exists, twenty minutes away
Austin has done exactly this for 28 years.
Capital IDEA is an Austin nonprofit that has paid ACC tuition for local adults since 1998, funded by the City of Austin and Travis County. Austin's own council documents describe it as “a contract for workforce development services,” not a grant. That is what keeps it clean legally: the city buys a service from a vendor, the vendor pays the college, and no public money goes to an individual.
Capital IDEA sponsors only high-demand careers that lead to a living wage in the region, selected from labor market research. Its partner colleges are ACC and Temple College. It is a Texas precedent, twenty-eight years old, and it uses the same college annexation would tax us to join.
City of Austin council agenda, May 2023, contract with Capital Investing in Development and Employment of Adults Inc.; capitalidea.org; Tex. Educ. Code 130.0081.
Sources
Where the plan comes from.
- ACC public-records response, Pflugerville ISD students outside the ACC taxing district, 2016–2025 (credit hours, enrollment, six-year outcomes).
- Projected Pflugerville ISD annexation tax revenue, 2026 certified values.
- ACC tuition and fee schedule and the ACC Free Tuition Pilot.
- ACC Sponsored Billing process; Texas Education Code 130.0032 and 130.0081.
- Texas Government Code chapter 791 (interlocal cooperation).
- Texas Local Government Code 380.001 and 501.105.
- Texas Tax Code 26.05 and 26.07.
- Texas Attorney General Opinion KP-0204 (2018).
- City of Pflugerville tax rate worksheet, 2025.
- City of Austin–ACC interlocal agreement, Capital IDEA.
Make the case
Vote no. Then build the Pflugerville Promise.
A no vote stops the permanent tax and keeps this plan on the table. Spread the word that Pflugerville can give local students the in-district rate through a completed-credit agreement, for a fraction of the cost, without signing away control forever.