1. Budget Summary May, 2008

2. What do we know at this point?
Budget is always a work in progress
Likely to finish this year with a $7 million deficit

3. What do we know at this point?
Budgeted next year for
Inflationary increases
3% salary increase
Modest increase in campus supply budgets

4. What do we know at this point?
With nothing changed for next year in revenue or spending…
Likely will finish with $23 million deficit

5. What do we know at this point?
Fund balance will go from $53 million (6/07) to $25 million (6/09)
13 cents operating tax rate increase yields approximately $17.5 million in annual revenue

6. What do we know at this point?
Getting to a balanced budget next year is essential

7. State funding system is the real problem…
“Hold Harmless” to 05/06 revenue
Inflationary cost increases with no Inflationary revenue adjustment
Transportation allotment, technology allotment, etc.

8. State funding system is the real problem…
Targeted revenue per WADA (weighted average daily attendance)

9. WADA comparison to other area districts
$6,129 - Sheldon
$5,630 - Deer Park
$5,439 - Goose Creek
$5,415 - Tomball
$5,336 – Lamar
$5,286 - LaPorte
$5,174 – Katy
$5,092 – Spring Branch
$5,033 – Houston
$4,938 – Crosby
$4,923 – Aldine
$4,937 - HUMBLE
$4,874 – Fort Bend
$4,821 – Huffman
$4,809 – Galena Park
$4,800 – Klein
$4,792 – Spring
$4,699 – North Forest
$4,690 – Pasadena
$4,674 – Alief
$,4680 – Channelview
$4,489 – Cy-Fair
Humble ISD projected WADA
38,666
If we received the same target revenue per WADA as Katy ISD, we could receive an additional $9.2 million in state aid in 08/09

10. We knew this was coming…
House Bill 1 state funding system accelerated the crisis
Circling the drain faster and now close to falling in

11. We knew this was coming…
Waited as long as possible to severely impact campuses and classrooms
But – we didn’t sit idly by
Since 02/03, $17.5 million in reductions
Built fund balance from $16 million (6/02) to $53 million (6/07)

12. Every year we provide a list of possible reductions to the Board
Updated in terms of $ and possible new items

13. List of possible budget reductions always included…
Eliminate differentiated staffing
6 of 7 at secondary schools
Reduce/Share
Assistant Principals
Counselors
Nurses
Librarians

14. List of possible budget reductions will also include…
Reduce central administrative staff
Only JV & Varsity athletics at high schools
Only one team per sport at middle schools

15. Heading toward “Minimum ISD”
By attrition and reassignments

16. So what can I do?
Stay Tuned