Implement Reductions, Find Revenue

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LBB Estimates, Equity Center Formulas, Moak Casey Forecasts

WADA is the Key, Prepare to use Fund Balance

As School Districts continue to make estimates of the impact of less State Revenue, two key elements of the budget discussion must be considered by all.  Naturally, the single most dominate discussion at the local level of every school district focuses on reductions in spending.  The range of reductions is wide and deep and everyone is preparing to address the loss in state revenue with staff cuts, operational cuts, and lowering expenses. 

The second discussion that must take place in every school district and community is finding revenue for their budget.  Every forecast, formula, and estimate used to determine school district revenue for the next biennium is based on WADA.  WADA is the Weighted Average Daily Attendance.  The total amount of loss in revenue is derived from a reduction in the per student state appropriation based on WADA.  While many school districts are facing huge deficits, the ability to lessen the deficit lies in the ability to increase WADA.  Nearly every school district has the ability to increase WADA while maintaining current spending levels.  Increasing WADA does not necessarily equate to an increase spending.  Every school district should perform an analysis of the impact of loss in state revenue based on an increase in WADA.

Another revenue source that must be considered by all school districts is Fund Balance.  Governor Perry is of the opinion that nearly $12 Billion has been collected by local school districts and is held in ISD accounts.  Governor Perry has called on school districts to prepare to use their “Rainy Day Fund” to assist in operating schools over the next biennium while state revenues are down.  While there is a viable argument over the difference in “Rainy Day Fund” and “Fund Balance, the fact is that most school districts have a fund balance.  The Legislator will surely find some way to lessen the budget impact on local school districts but the Legislator will also call on local school districts to use some of their own Fund Balance to make ends meet.  Discussions of available funds, from Fund Balance, for operational purposes should be held at the highest level of all school districts.

Ideas for Legislators

School Personnel understand education, the cost of education, the day-to-day operations involved in education and the impact of education on a community, state and nation.  Sometimes Legislators don’t.

Educating Legislators, about education, is as important as it has ever been.  Providing ideas and solutions to Legislators will be the avenue to reaching a solution.  Maintain contact with your legislator with ideas, thoughts, and possibilities.  Here are a few ideas to express:

Raise the local tax effort ceiling so that school districts can raise revenue

Reduce the number of school days and contract days for the next biennium

Impose a 2-year moratorium on the state testing program for students in grades 3, 5, 6, 7, 9, 10, and 12

Use the state’s Rainy Day Fund to lessen the effect on education

Thought

Focus on the promise and possibility of today.