Tuesday, August 26, 1997
Direction: develop viable alternatives to $100
budget
By JONATHAN KRYDER Staff Writer
The Abilene ISD board directed administrators to develop viable
alternatives to their $100 million general-fund budget proposal
at Monday's meeting.
The board's reservations about the initial proposal revolved
primarily around the general-fund balance and retaining an appropriate
amount in that account by year's end.
Members of the board suggested allowing the fund balance to
fall no lower than $24 million by year's end. Monday's proposal
called for borrowing at least $6 million from the fund to cover
expenditures for operations and new construction and technology.
With a $2 million debit on the way to meet 1996-97 expenses,
the general fund balance will soon stand at $29 million.
The board's $24 million minimum represents the approximate
amount of money necessary to cover AISD operational costs for
three months. The Texas Association of Business Officials recommends
districts retain two to three months' worth of money in their
funds.
"This is on the conservative side; it's smart business,"
board president Betty Davis said of the suggested amount.
Superintendent Charles Hundley said his staff will prepare
several alternative plans in time for the next board meeting that
focus on reducing the current plan's deficit.
"We will have to go through account by account and recommend
some cuts that way; but I can tell you they will be non-payroll
items," he said.
The board plans a final decision on the new budget no later
than Sept. 15 to coincide with the appraisal district's tax-rate
deadline.
Davis said plenty of negotiations lie ahead.
"Tonight has just been the beginning," she said.
"Our goal was to start the conversation. We've done that."
Monday's $100 million proposed general fund represents a 3.5
percent increase over last year's fund. In addition to the $100
million, the administration's proposal called for $6.3 million
in food-service expenditures and $5.3 million in debt service.
Hundley said this year's figures maximize state aid because
of a 7.7 percent increase in the tax rate from $1.379 to $1.485.
Typically, state aid increases as local efforts increase.
Hundley said the substantial increase in the proposed tax rate
offsets this year's lower amount of taxable property. The district's
taxable property is down to $2.22 billion from last year's $2.31
billion because of the state's recent revision of the homestead-exemption
law.
The increase in the tax rate coupled with the decrease in taxable
properties would result in a 3.8 percent increase in last year's
total levy to $32,052,719.
Under the proposal, the average district homeowner would save
about $75 while the average business owner spends $300 in annual
taxes.
This redistribution of the tax burden reflects the latest state
changes to lighten the tax load on homeowners, Hundley said.
The general-fund budget calls for an end-of-year deficit of
$5.9 million. Last year's anticipated deficit of $6.6 million
shrank to $2 million by year's end, partly because of good interest
returns, said David Polnick, deputy superintendent for business
and finance. Typically, school boards budget revenues conservatively
and expenditures liberally to accommodate for unexpected outlays
during the year, Polnick said.
The administration continued its call for technology advancements
Monday by presenting to the board a slimmed-down version of its
original $2 million-a- year plan.
The latest plan requires $1 million the first year and $400,000
each of the two years thereafter.
The board briefly addressed a plan to earmark general fund-balance
money for construction projects at various AISD sites. Currently,
those projectsinclude renovations to fieldhouses at both high
schools, more classrooms at Clack Middle School, and expansion
of the Locust and Woodson early childhood centers.
Davis suggested the board coincide the budget proceedings with
its decision concerning the amount allocated to the construction
and where it would come from.
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Abilene Reporter-News / Texnews / E.W. Scripps Publications
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