The Katy ISD Board of Trustees last night approved the proposed budget that includes total revenues of $563 million, and total expenditures of $556 million for the 2011-2012 academic year. The budget was built on the same tax rate from the previous year at $1.1266 per $100 valuation for the Maintenance & Operations tax rate, and $0.40 per $100 valuation for the Debt Service tax rate.
Katy ISD and districts across the state are facing significant budget shortfalls due to $4 billion in cuts to public education in Texas. For Katy ISD, this translates to a general fund budget that is $27 million less than the previous year’s. Despite the cuts, this year’s budget will add $3.9 million to the general fund balance.
“The Board and I have conducted an extensive review of the 2011-2012 budget and considered many different options. It’s also important to remember that we have five new schools to open and operate over the next three years – and the Katy area continues to grow,” says Katy ISD Superintendent Alton Frailey. “Facing a major financial reduction is never an easy situation, and there were many areas where we had to cut back. However, at the end of the day, we have found a way to reduce spending while increasing the fund balance and, more importantly, eliminate any major negative impacts to student learning.”
The Katy ISD budget is composed of three fund types: General Fund, Special Revenue Fund and Debt Services Fund. The General Fund includes revenues and expenditures of $449.4 million and $442.8 million respectively, with the major expenditure being payroll (88 percent). The Special Revenue Fund includes revenues and expenditures of $27 million and $24.7 million respectively, covering the district’s food services operations. The Debt Services Fund covers the district’s long-term debt and includes expenditures of $88.7 million and revenues of $86.6 million – with transfers of $240,000 in interest earnings on bond projects, and $3.2 million for the subsidy from Build America Bonds.
Adds Frailey, “Although the budget is now final, we will continue to look for cost-savings opportunities in every area of the district.”
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