1. 2010 – 2011 Budget Workshop Jessica N. Hunt, CPA Business Manager Industrial Independent School District May 27, 2010

2. Budget Basics

3. Legal Requirements for Budgets Sections 44.002 through 44.006 of the Texas Education Code. Superintendent is the district budget officer. A proposed budget must be prepared by August 20 of each year. According to the Comptroller, the Board should approve a proposed tax rate to include in its publication (discussed below). The board president must call a public meeting to discuss the budget and tax rate. –At least 10 days, but not more than 30 days, before the public meeting, the NOTICE OF PUBLIC MEETING TO DISCUSS BUDGET AND PROPOSED TAX RATE must be published (in newspaper) in strict accordance with the requirements of Section 44.004 of the Code.

4. Legal Requirements for Budgets Concurrently, district must post summary of proposed budget on the district’s web-site. Summary must include comparison to prior year’s actual spending and information on per student and aggregate spending on Instruction(11,12,13, 95), Instructional Support (21, 23, 31, 32, 33, 36), Central Administration (41), District Operations (51, 52, 53, 34, 35), Debt Service (71), and Other (61, 81, 91, 92, 93, 97, 99). Post notice of meeting under Open Meetings Act (72 hrs.) Conduct the public meeting –Any taxpayer in the district may be present and participate in the meeting –Board may hear public comments, discuss the budget, adopt the budget, and adopt the tax rate at the same public meeting. Adopt the budget ***NEW*** Post a copy of the adopted budget on the district’s web-site. Web-site must prominently display the link to the budget. Budget must be maintained on the web-site for three (3) years after adoption.

5. Legal Requirements for Budgets No funds may be expended other than as provided for in the budget. The board must amend the budget, as necessary, before exceeding a functional category. The budget must be prepared in accordance with GAAP, as well as Federal, State, and local requirements. The budget must include the General Fund, the Food Service Fund, and the Debt Service Fund, at a minimum. Budget must be adopted before the tax rate may be adopted (may be the same meeting). –***NEW**** For 2011, a school district may adopt a tax rate based on “certified estimated property values” before adopting a budget (HB 3646). Must publish two (2) notices and hold two (2) hearings. Budget must be adopted by August 31. The budget, once adopted, must be filed with TEA through PEIMS and the Annual Financial & Compliance Report.

6. Surviving The Budget Process

7. Budget Timeline

8. Tentative 2010-2011 Budget and Tax Rate Adoption Schedule February/March Distribute 2010-2011 Budget Packets to Campuses/Budget Centers March 25, 2010Return Campus/Departmental Budget Requests to the Business Office April 30Approximate date for Appraisal District to provide IISD with Preliminary Appraised Values. May 27, 2010Board Budget Workshop July 15Deadline for Commissioner of Education to send notice to Districts required to equalize wealth. July 20Deadline for Appraisal Review Board to approve appraisal records. July 25Deadline for Chief Appraiser to certify rolls to taxing units. July/August Certification of anticipated collections rate by collector and calculation of rollback tax rate.

9. Tentative 2010-2011 Budget and Tax Rate Adoption Schedule August 672-hour notice for meeting (Open Meetings Notice) August 672-hour notice for meeting (Open Meetings Notice) August 9Regular Meeting and Budget Workshop. Meeting of governing body to decide on public meeting date on budget and proposed tax rate. The school board votes on proposed tax rate that will be published in the notice for the public meeting. August 13Last day to post “NOTICE OF PUBLIC MEETING TO DISCUSS (Tribune-9 th )BUDGET AND PROPOSED TAX RATE” published 10 to 30 days before public meeting. Post proposed budget summary on the district’s Web site. (Tribune-9 th )BUDGET AND PROPOSED TAX RATE” published 10 to 30 days before public meeting. Post proposed budget summary on the district’s Web site. August 2072-hour notice for meeting (Open Meeting Notice) August 23Public meeting on budget and proposed tax rate. Approve 2010-2011 Budget. Approve Final Amended 2009-2010 Budget. September 1072-hour notice for meeting at which governing body will adopt tax rate (Open Meeting Notice)

10. Tentative 2010-2011 Budget and Tax Rate Adoption Schedule September 13Meeting to adopt tax rate. School district subject to an equalized wealth notice must wait to adopt the tax rate until the commissioner of Education certifies the wealth is equalized (Texas Education Code Section § 41.004c ). School district must adopt the tax rate by September 30, or within 60 days of receiving the certified appraisal roll, whichever is later.

11. Budget Message

12. Estimated Revenue

13. Appraised Property Values 2003 - 2010 Estimated Property Value is $432,117,706. A decrease of $82,238,224 or 16%.

14. Tax Rates 2003 – 2010 Est. Rate for 2010 is 1.4410; M&O of 1.04 and I&S of.4010.

15. General Fund Expenditures

16. General Fund Balances 2003 - 2009

17. Questions/Discussion