Jobs to be eliminated largely through attrition for next year
The Grapevine-Colleyville ISD board approved a $140.9 million 2013–14 general fund budget in June, but changes will be made in July based on the new school finance laws passed by the Texas Legislature.
The budget, approved before the governor signed the bills into law, includes no tax increase, eliminates eight positions and lacks cost-of-living increases for
employees.
The total is about $3 million less than the 2012–13 budget, in part because falling enrollment will mean a decrease in state funding.
Administrators expect the declines to level off in time. But the area served by the district is about 95 percent built out, said Megan Overman, communications director.
"Larger groups are graduating out, and groups coming in are smaller." she said. "When children graduate, the families stay here. It becomes a home base for the family, and there are fewer opportunities for younger children to move in."
The budget is based on a projected enrollment of 13,232—a decline from 13,386 in 2012–13. Enrollment has been steadily dropping since at least 2008–09, when it was 13,822.
Enrollment is a key factor in funding because Texas districts are paid by the state based on a weighted formula for average daily attendance, known as WADA (Weighted Average Daily Attendance). GCISD receives $5,510 per WADA.
Overman said iUniversity Prep, which allows enrollment from anywhere in the state, and the district's limited open enrollment program are efforts to shore up the figures.
Jobs
The district plans to eliminate the eight positions primarily through attrition, said Chief Financial Officer DaiAnn Mooney.
Because more than 80 percent of the district's budget goes to payroll, few other areas are available to cut, she said.
Mooney and her staff begin the budgeting process in December each year, after the previous year's budget is approved in July.
Staffing is studied continuously, with input from each campus. But administrators scrutinize projections and recommendations intensely in February and March.
This is the third year of the past four that district personnel, including teachers, received no cost-of-living increases. During 2012–13, employees received a
1 percent cost-of-living adjustment from a portion of an unexpected $9.1 million in federal flood control money.
State funding
The new school finance laws passed by the Legislature this year will restore
$3.4 billion to Texas public schools.
GCISD expects to have about $3.1 million restored under the new laws over the next two years—a fraction of the $14.2 million cut as a result of the state funding reductions approved by the Legislature in 2011.
GCISD likely will put its money into the fund balance to continue the current level of service, Mooney said.
"It helps, but it doesn't fix the problem," Overman said.
Tax collections are expected to be higher this year because of increased property values—for example, a home with an assessed tax value of $264,024 last school year is expected to be valued at $268,851 for 2013–14.
But the district has to send the additional money back to the state under Texas' "Robin Hood" recapture law.
Under the recapture law, the state collects money from districts considered wealthy and redistributes it to poorer districts. GCISD estimates it will have to return $27.7 million to the state in 2013–14.
The district expects to have $7.8 million less than it needs to operate in 2013–14, but the fund balance will cover the difference, Mooney said.
The fund balance, held in reserve for district needs during months when cash flow drops, is expected to dwindle to $39.5 million in 2013–14, down from $53.3 million in 2011–2012.
Mooney said that if state funding is not fully restored, the district will fall below its 20 percent fund balance threshold by 2015–16 and cuts in programs will be necessary.
Debt service, child nutrition
The board also approved a $31 million budget for debt service on 2013–14 bonds and $5.5 million for its Child Nutrition Fund. The debt comes in part because of a $124.5 million bond issue approved by voters in 2011.
That money is being used for safety, security and other improvements.
