The budget approved June 19 reflects what the board discussed during its June 5 workshop.
What officials are saying
GISD Chief Financial Officer Jennifer Hanna said the gap is based on projections and could change throughout the year as staff monitors the budget.
“We have worked this year to reduce our deficit and have come out better than budget,” Hanna said. “We hope to do the same for next year.”
At the June 19 meeting, the board of trustees also approved the final budget amendment for FY 2022-23, which demonstrated the increase in budget position. While the board initially approved a more than $7 million budget shortfall last year, the final budget amendment shows a $3.5 million surplus, Trustee Stephen Benold said.
“This is phenomenal,” he said. “I just want the public to be aware that our financial affairs are well-managed, and we are in good financial shape.”
The breakdown
Of the $192.2 million projected expenditures in the general fund budget, about 43%—or $82.4 million—will go toward instruction, according to GISD documents.
The next largest expenditure at $49.7 million is reserved for recapture payments the district is expected to make to the state.
On the revenue side, the vast majority—91%—will come from local property tax revenues generated through a proposed property tax rate of $1.1336 per $100 valuation.
The overall budget also includes a $6 million food service fund, which Hanna said is a self-sustaining fund, and a debt services fund.
The debt services fund is projected to bring in $68.9 million in revenue and spend $61.2 million on bond payments. Hanna said this $7.7 million difference will go into the fund balance, and be used to refund bonds and save taxpayer dollars.
Digging in deeper
While the board will approve the tax rate later this summer once the district receives final certified property values from the Williamson Central Appraisal District, this estimate accounts for an eight cent decrease in the maintenance and operations, or M&O, component of the rate, which funds daily district functions, Hanna said.
The proposed rate keeps the interest and sinking component of the tax rate steady. The I&S rate funds the district’s debt payments and has not increased in more than five years, she said.
However, Hanna said the M&O portion of the tax rate could change because of property tax relief conversations the Texas Legislature may have in special-called sessions this summer.
