The overview
FIRST is used to “assess the qualities of financial management in Texas public schools,” according to a presentation by the district.
Out of a possible score of 100, the district scored a 96, which is two points higher than last year’s score of a 94, TEA data shows.
Diving in deeper
The FIRST rating uses 21 indicators. These include whether the district submitted financial documents to the TEA within the required timeframe; if the district complied with debt payments by the end of the fiscal year; if cash on hand was sufficient; and whether the current assets and liabilities ratio was sufficient to cover short-term debt.
The only indicator in which the district did not receive a 10/10 score was “Indicator 12,” which evaluates the ratio of assessed property value to future interest and sinking payments. I&S payments are used to pay debt services, or bonds, according to district documents.
AISD scored a 6/10 on this indicator, per the presentation.
AISD Chief Financial Officer Daniel Combs said this indicator is a “known challenge for fast-growth school districts.”
“On the ... debt service side, the state really makes very little provision to help fast-growth districts build schools,” Combs said. “They really rely on school districts, school boards and bond elections to be able to accommodate new growth coming in. As students come quickly into particular areas it causes a strain because the local community bears the responsibility for taking care of those new kids.”
Community Impact has previously reported bonds are the main way districts raise funds to build out and repair schools.
