Think of a school budget like a fitness plan for our district—it keeps us strong, stable, and moving towards achieving healthy financial goals. Let’s break this down together!
What’s In a Budget?
School budgets and tax rates are divided into two distinct parts, each available for very specific types of expenses.
Maintenance and Operations (M&O)
Think of the M&O budget for Alief ISD like a daily fitness regimen for our schools. It covers everything necessary to keep the school day running—from staff salaries to utilities and transportation. Like getting your steps in, staying hydrated and eating well, it’s all about ensuring our schools operate smoothly and effectively every day.
Interest and Sinking (I&S)
The I&S fund is our district’s way of preparing for the future, used only for paying off bond debt and interest for construction and capital improvements. Just like investing in good fitness equipment, this fund focuses on upgrading and maintaining our facilities. School districts can take on new debt only after voters approve a school bond proposition.
How Do Enrollment and Attendance Affect the Budget?
School districts set budgets based on projected enrollment, but get funded based on attendance.
In Texas, school districts find themselves navigating a complex fiscal landscape where expenditures are determined by enrollment numbers, but revenue hinges on attendance. It can feel like gearing up for the big game only to have half your team show up to play.
Districts adopt their budgets based on demographic enrollment projections, but state funding is calculated based on who shows up each day, measured by Average Daily Attendance (ADA).
The ADA is the key player here, calculated by averaging the number of students present each day, making each school day a crucial opportunity to secure the necessary funding.
It’s a challenging scenario. You are told how many students to expect so you hire a teacher, provide a classroom, buy desks and books, ensure there are enough supplies and other resources, only to find out either not as many students show up for school or the ones who do attend so sporadically that, it lowers the funding you were expecting to receive – not to mention the lost teaching and learning time.
What Does That Mean for Our District?
What is the daily impact on Alief ISD when students miss school?
In Alief ISD, each student’s daily attendance contributes roughly $35 to the district’s budget. If attendance falls below 90%, the district loses $138,145 in just one day. This means when over 10% of students are absent, the financial impact is equivalent to losing two teachers’ salaries every day.
Zoom out and look at that number on a larger scale, if every day of attendance is at exactly 90% (and we know that attendance is fluid daily) the district would be losing over $24 million a year in state funding.
Texas and only five other states remain the only states that still base school funding on attendance rather than enrollment.
Tailoring the Fiscal Fitness Plan
Armed with the essentials of robust financial health, let’s delve deeper into your local school budget specifics.