2010 – 2011 Budget 2010 – 2011 Budget WorkshopWorkshop

2010 – 2011 Budget 2010 – 2011 Budget WorkshopWorkshop

Jessica N. Hunt, CPAJessica N. Hunt, CPABusiness ManagerBusiness Manager

Industrial Independent School DistrictIndustrial Independent School District

May 27, 2010May 27, 2010

Budget BasicsBudget Basics

Legal Requirements for BudgetsLegal Requirements for BudgetsSections 44.002 through 44.006 of the Sections 44.002 through 44.006 of the Texas Education Texas Education CodeCode..Superintendent is the district budget officer.Superintendent is the district budget officer.A proposed budget must be prepared by August 20 of each A proposed budget must be prepared by August 20 of each year.year.According to the Comptroller, the Board According to the Comptroller, the Board shouldshould approve a approve a proposed tax rate to include in its publication (discussed proposed tax rate to include in its publication (discussed below). below). The board president must call a public meeting to discuss The board president must call a public meeting to discuss the budget and tax rate.the budget and tax rate.– At least 10 days, but not more than 30 days, before the At least 10 days, but not more than 30 days, before the

public meeting, the NOTICE OF PUBLIC MEETING TO public meeting, the NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE must DISCUSS BUDGET AND PROPOSED TAX RATE must be published (in newspaper) in strict accordance with be published (in newspaper) in strict accordance with the requirements of Section 44.004 of the Code.the requirements of Section 44.004 of the Code.

Legal Requirements for BudgetsLegal Requirements for BudgetsConcurrently, district must post summary of proposed budget Concurrently, district must post summary of proposed budget on the district’s web-site. Summary must include comparison on the district’s web-site. Summary must include comparison to prior year’s actual spending and information on per student to prior year’s actual spending and information on per student and aggregate spending on Instruction(11,12,13, 95), and aggregate spending on Instruction(11,12,13, 95), Instructional Support (21, 23, 31, 32, 33, 36), Central Instructional Support (21, 23, 31, 32, 33, 36), Central Administration (41), District Operations (51, 52, 53, 34, 35), Administration (41), District Operations (51, 52, 53, 34, 35), Debt Service (71), and Other (61, 81, 91, 92, 93, 97, 99). Debt Service (71), and Other (61, 81, 91, 92, 93, 97, 99). Post notice of meeting under Open Meetings Act (72 hrs.)Post notice of meeting under Open Meetings Act (72 hrs.)Conduct the public meetingConduct the public meeting– Any taxpayer in the district may be present and participate in the Any taxpayer in the district may be present and participate in the

meetingmeeting– Board Board maymay hear public comments, discuss the budget, adopt the hear public comments, discuss the budget, adopt the

budget, and adopt the tax rate at the same public meeting. budget, and adopt the tax rate at the same public meeting.

Adopt the budgetAdopt the budget***NEW*** Post a copy of the adopted budget on the district’s ***NEW*** Post a copy of the adopted budget on the district’s web-site. Web-site must prominently display the link to the web-site. Web-site must prominently display the link to the budget. Budget must be maintained on the web-site for three budget. Budget must be maintained on the web-site for three (3) years after adoption.(3) years after adoption.

Legal Requirements for BudgetsLegal Requirements for BudgetsNo funds may be expended other than as provided for in No funds may be expended other than as provided for in the budget. The board must amend the budget, as the budget. The board must amend the budget, as necessary, before exceeding a functional category.necessary, before exceeding a functional category.The budget must be prepared in accordance with GAAP, The budget must be prepared in accordance with GAAP, as well as Federal, State, and local requirements.as well as Federal, State, and local requirements.The budget must include the General Fund, the Food The budget must include the General Fund, the Food Service Fund, and the Debt Service Fund, at a minimum.Service Fund, and the Debt Service Fund, at a minimum.Budget must be adopted before the tax rate may be Budget must be adopted before the tax rate may be adopted (may be the same meeting).adopted (may be the same meeting).– ***NEW**** For 2011, a school district may adopt a tax rate based ***NEW**** For 2011, a school district may adopt a tax rate based

on “certified estimated property values” on “certified estimated property values” beforebefore adopting a budget adopting a budget (HB 3646). Must publish two (2) notices and hold two (2) hearings.(HB 3646). Must publish two (2) notices and hold two (2) hearings.

Budget must be Budget must be adoptedadopted by August 31. by August 31. The budget, once adopted, must be filed with TEA through The budget, once adopted, must be filed with TEA through PEIMS and the Annual Financial & Compliance Report.PEIMS and the Annual Financial & Compliance Report.

Surviving The Budget Surviving The Budget ProcessProcess

Budget TimelineBudget Timeline

Tentative 2010-2011Tentative 2010-2011Budget and Tax Rate Adoption ScheduleBudget and Tax Rate Adoption Schedule

February/March February/March Distribute 2010-2011 Budget Packets to Campuses/Budget CentersDistribute 2010-2011 Budget Packets to Campuses/Budget Centers

March 25, 2010March 25, 2010 Return Campus/Departmental Budget Requests to the Business OfficeReturn Campus/Departmental Budget Requests to the Business Office

April 30April 30 Approximate date for Appraisal District to provide IISD with Preliminary Approximate date for Appraisal District to provide IISD with Preliminary Appraised Values. Appraised Values.

  

May 27, 2010May 27, 2010 Board Budget WorkshopBoard Budget Workshop

  

July 15July 15 Deadline for Commissioner of Education to send notice to Districts required to Deadline for Commissioner of Education to send notice to Districts required to equalize wealth.equalize wealth.

  

July 20July 20 Deadline for Appraisal Review Board to approve appraisal records.Deadline for Appraisal Review Board to approve appraisal records.

  

July 25July 25 Deadline for Chief Appraiser to certify rolls to taxing units.Deadline for Chief Appraiser to certify rolls to taxing units.

  

July/August July/August Certification of anticipated collections rate by collector and calculation of Certification of anticipated collections rate by collector and calculation of rollback tax rate.rollback tax rate.

  

Tentative 2010-2011Tentative 2010-2011Budget and Tax Rate Adoption ScheduleBudget and Tax Rate Adoption Schedule

  August 6August 6 72-hour notice for meeting (Open Meetings Notice)72-hour notice for meeting (Open Meetings Notice)

  

August 9August 9 Regular Meeting and Budget Workshop. Meeting of governing body to decide Regular Meeting and Budget Workshop. Meeting of governing body to decide on public meeting date on budget and proposed tax rate. The school board on public meeting date on budget and proposed tax rate. The school board votes on proposed tax rate that will be published in the notice for the public votes on proposed tax rate that will be published in the notice for the public meeting.meeting.

  

August 13August 13 Last day to post “NOTICE OF PUBLIC MEETING TO DISCUSSLast day to post “NOTICE OF PUBLIC MEETING TO DISCUSS

(Tribune-9(Tribune-9thth)) BUDGET AND PROPOSED TAX RATE” published 10 to 30 days before public BUDGET AND PROPOSED TAX RATE” published 10 to 30 days before public meeting. Post proposed budget summary on the district’s Web site.meeting. Post proposed budget summary on the district’s Web site.

August 20August 20 72-hour notice for meeting (Open Meeting Notice)72-hour notice for meeting (Open Meeting Notice)

  

August 23August 23 Public meeting on budget and proposed tax rate. Approve 2010-2011 Budget. Public meeting on budget and proposed tax rate. Approve 2010-2011 Budget. Approve Final Amended 2009-2010 Budget.Approve Final Amended 2009-2010 Budget.

  

September 10September 10 72-hour notice for meeting at which governing body will adopt tax rate (Open 72-hour notice for meeting at which governing body will adopt tax rate (Open Meeting Notice)Meeting Notice)

  

Tentative 2010-2011Tentative 2010-2011Budget and Tax Rate Adoption ScheduleBudget and Tax Rate Adoption Schedule

September 13September 13 Meeting to adopt tax rate. School district subject to an equalized wealth notice Meeting to adopt tax rate. School district subject to an equalized wealth notice must wait to adopt the tax rate until the commissioner of Education certifies the must wait to adopt the tax rate until the commissioner of Education certifies the wealth is equalized (wealth is equalized (Texas Education Code Texas Education Code Section § 41.004c ). School Section § 41.004c ). School district must adopt the tax rate by September 30, or within 60 days of receiving district must adopt the tax rate by September 30, or within 60 days of receiving the certified appraisal roll, whichever is later.the certified appraisal roll, whichever is later.

Budget MessageBudget Message

Estimated RevenueEstimated Revenue

Appraised Property ValuesAppraised Property Values2003 - 20102003 - 2010

Estimated Property Value is $432,117,706. A decrease of $82,238,224 or 16%.

Tax Rates 2003 – 2010Tax Rates 2003 – 2010

Est. Rate for 2010 is 1.4410; M&O of 1.04 and I&S of .4010.

General Fund ExpendituresGeneral Fund Expenditures

General Fund BalancesGeneral Fund Balances2003 - 20092003 - 2009

Questions/DiscussionQuestions/Discussion