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Katy Citizen Watchdog$ |
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We’re Taxpayers. It’s Our Money. |
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Opening 5 New Schools To Boost Spending In 2008-09/Katy ISD Budget Officer Foresees Little Increase In State Funds |
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Officials say keeping Katy Independent School District in sound financial shape during a period of unvarying state funding will be a challenge in preparing the 2008-09 budget. Trustees learned from a financial report Wednesday that the district expects to incur about $20 million in additional costs this year compared to last year because of the opening of five new campuses, inflation and salary increases. During the workstudy meeting, district chief financial officer Bill Moore presented what he called the first of several updates before the budget is finalized. Referring to the budget as a "work in progress," Moore said the spending plan is based on a projected enrollment of 56,685 students, a 5.6 percent increase compared to last year. Under the current forecast, Katy has a preliminary 2008-09 budget showing expenditures of $417.9 million and revenues of $398.6 million, leaving a projected deficit of about $12 million after budget adjustments during the fiscal year. Last year's budget included $389 million in expenses and $379.9 million in revenues with a deficit of $2.1 million after budget adjustments. "We still expect to see some movement in the numbers over the next several weeks as we work to finalize the budget for next year," district spokesman Steve Stanford said. The district expects to incur additional costs of $9 million to open five new campuses in August. WoodCreek Junior High and Bonnie Holland Elementary will open on the southside of the district, while Morton Ranch Elementary, Cardiff Junior High and a ninth-grade center at Morton Ranch High School will open on the north. "These are costs the district did not have last year," Moore said. Because state funding has not kept pace with inflation, Moore said the district expects an extra $3 million in fuel and utilities costs. Salary increases could add $8.1 million, he said. To cope with budget gaps, district officials continue to look for places to save money, Moore said. Budget adjustments would create reductions of $6.9 million to offset increases. Reductions would include adjustments to teaching schedules, campus administrators and staffing substitute budgets, and central department baseline budgets. By raising ticket prices to some events, the district anticipates a revenue increase of $560,000. Like other districts in Texas, Katy's operations are primarily financed through state funding and local property tax revenues. Vigorous residential and business development won't translate into higher tax revenues for the district because under House Bill 1, passed by the Texas Legislature in 2006, state revenues are disbursed on a per-pupil allotment. Moore said Katy is close to the state's average expenditure of $6,500 per pupil. As the local tax base increases, the school district receives less money from the state. For example, the district is projecting an increase in its tax base of $16,171,736,868 this year of 10.1 percent to $17.8 billion due to higher appraisal values, but no new revenues are generated. Moore said in essence the district is on a fixed income. In 2007-08, the district received $189.7 million in state revenues and the amount is projected to increase slightly in 2008-09 to $193 million. Local revenues this year are anticipated to be $204.8 million compared to last year's $189.6 million. Katy ISD has to work with three separate tax authorities in Harris, Fort Bend and Waller counties as the result of a Texas appraisal district bill passed in 2007. The bill allows appraisal districts to only appraise properties within their county lines. Moore said the maintenance-and-operation tax rate of $1.1266 remains unchanged at this time, and information on the debt service tax rate will be presented in July. The district's total 2007-08 tax rate is $1.5266. As the budget process unfolds, the district will have to make major decisions regarding salary increases, staffing plans, use of fund balance and tax rates, Moore said. helen.eriksen@chron.com
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Helen Eriksen, Houston Chronicle |
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Date: 06/23/2008 |
