Understanding NEISD Finances
2010-2011 Adopted Budget
On June 21, 2010, the North East ISD Board of Trustees adopted the 2010-2011 Budget for the General Fund, Debt Service Fund, and School Nutrition Services Fund. The adopted General Fund reflects $504 million in revenue and $494.8 in expenditures. The adopted Debt Service Fund includes about $99.4 million in revenue and nearly$86.5 in expenditures. The adopted School Nutrition Fund includes $30.3 million in revenue and $30.1 in expenditures. Under this fund, the district will maintain cafeteria tray prices at the same rate. There has been no increase to these prices since 2002. Read more about the 2010-2011 Adopted Budget -- Message from the superintendent on the adopted budget
The Texas Education Code (TEC), Chapter 44, governs the process for Texas school district budget preparation and adoption. The Board of Trustees must adopt annually a budget for the General, Debt Service, and School Nutrition Services funds. To comply with the TEC, districts must produce and publish certain reports related to the proposed and adopted budget each year. First, the proposed budget and its effect to local property taxes are discussed in a public meeting, and notice of the meeting must be published on the District Web site and in the local newspaper at least ten days prior to the meeting. Click here to view the 2010-2011 notice -- Notice of Public Meeting
The TEC also specifies the format of the official adopted budget. Click here to see the 2010-2011 official adopted budget -- Adopted Budget
At the public meeting, the Board of Trustees is presented with information regarding major components of the 2010-2011 budget. Click here to view the 2010-2011 presentation -- Presentation @ Public Hearing
Historical adopted budgets can be found at www.neisd.net/fina/reports.html.
2010-2011 Budget Study Sessions
Prior to the adoption of the budget, the Board of Trustees conducts public study sessions to review and discuss the district's financial projections. The district faces significant financial challenges because of
uncertain state funding, but is being very thorough in its research and decision making to ensure financial stability and stewardship of public funds.
Since 2006, Texas school districts operate under a state finance system where
state and local funding is capped based on revenue per student. This is commonly
referred to as the Target Revenue system. Even if property values go up and
property tax bills increase, school districts don't realize any more money per
student for daily operations. Any increase in property tax revenue from appraisal
growth simply reduces the amount of state money received by districts.
To avoid a tax rate increase at a time when the state's school financial system
isn't keeping pace with rising educational costs, NEISD is implementing a
spending reduction plan. By 2013, the district plans to reduce
approximately $63 million cumulatively in expenditures.
Further discussion about these spending reductions as well as the district's projected revenue and expenditures for 2010-2011 were part of the budget study sessions. Presentations from these sessions are posted below.
May 3, 2010 - Budget Study Session #1
May 17, 2010 - Budget Study Session #2
May 24, 2010 - Budget Study Session #3
June 14, 2010 - Budget Study Session #4
June 21, 2010 - Official Budget Adoption
Budget Book
Simply meeting the budget requirements of the TEC doesn't present the Board, NEISD staff, or our parents and taxpayers a complete picture of the District’s financial picture. That's why NEISD produces an annual "Budget Book" explaining in more detail the adopted budget and provides stakeholders a reference for learning more about District finances. Quality budget documents are essential if citizens and others with an interest in a government's finances are to be full and informed participants in the budget process. Better budget documents contribute to better decision making and enhanced accountability.
Not only is the Budget Book used locally, it is also reviewed annually by the Government Finance Officers Association (GFOA). NEISD has earned the GFOA's "Distinguished Budget Presentation Award" for its annual Budget Book. The 2010-2011 Budget Book will be available fall 2010. Click here to view the 2009-2010 Budget Book (2 files) – Budget Book & Budget Book Supplement
Historical adopted budgets and Budget Books can be found at www.neisd.net/fina/reports.html.
Investments
NEISD Treasury staff work diligently to ensure the District maximizes the use of every taxpayer dollar. All funds received by the District are invested in accordance with the Texas Public Funds Investment Act, Texas Government Code Chapter 2256. The results of the District’s investment portfolio are reported to the Board of Trustees monthly, and a Comprehensive Annual Investment Report is approved by the Board. The Annual Investment Report contains information on the District’s investment activity during fiscal year 2008-2009. Click here to view the 2008-2009 report – Investment Report
Historical Investment Reports can be found at www.neisd.net/fina/reports.html.
Comprehensive Annual Financial Report
The Comprehensive Annual Financial Report (CAFR) is the annual financial statement for North East Independent School District. It is prepared to provide the Board of Trustees, taxpayers, bondholders, regulatory agencies, and District staff members with useful information about the District’s operations and financial position. The District’s financial statements are audited annually and the independent auditor’s report is included in the CAFR. Not only does it provide a snapshot of the District’s financial data for the prior year, the statistical section presents trend information over the past ten years that provides insight in the changes on the District’s financial position over time. North East Independent School District has received the Government Financial Officers Association (GFOA) Certificate of Achievement for Excellence award in Financial Reporting for 22 consecutive years. Click here to view the June 30, 2008 CAFR -- CAFR
Historical CAFRs can be found at www.neisd.net/fina/reports.html.
Financial Integrity Rating System of Texas (Schools FIRST)
The Schools FIRST rating system was implemented in 1999 by the Texas Education Agency. The primary goal of Schools FIRST is to achieve quality performance in the management of school districts’ financial resources, a goal made more significant due to the complexity of accounting associated with Texas’ school finance system. The Schools FIRST accountability rating system assigns one of four financial accountability ratings to Texas school districts, with the highest being “Superior Achievement,” followed by “Above-Standard Achievement,” “Standard Achievement,” and “Substandard Achievement.” North East Independent School District has received a rating of “Superior Achievement.” in each of the six years since Schools FIRST has been implemented. Click here to view the 2007-2008 Schools FIRST report – Schools FIRST
Historical FIRST reports can be found at www.neisd.net/fina/reports.html.
Administrative Costs
The official standard used by the Texas Education Agency (TEA) for Schools FIRST calculates Administrative Cost Ratio by dividing Administrative Costs (Instructional Leadership plus General Administration) by Instructional Costs (Instruction and Instructional Services plus Guidance and Counseling). TEA sets standards for districts based on the district’s enrollment. You can review NEISD’s administrative cost ratio for each of the last five years and the budgeted rate for 2009-2010 in the following - NEISD Administrative Costs Report
Check Register
If the District does not meet the requirements of Indicator #13 of the Schools FIRST report (above), it is required to post its check register to its Web site. Although NEISD has passed this indicator every year, the District chose to increase its transparency by posting its check register to the District Web site, beginning in November 2007. This register includes all checks, other than employee paychecks and workers’ compensation reimbursements, issued by the District. Click here to access the District’s check registers – Check Registers
Financial Exigency
On October 19, 2009, the Board of Trustees declared “Financial Exigency” exists in NEISD. While the district is not in financial turmoil now, this move was necessary to avoid a financial emergency in the near future. The action authorizes district staff to implement budget cuts starting in 2010-2011 to protect NEISD’s financial future. This presentation was made to the Board during the October 19th meeting. Click here to view the presentation – October 19 Board Presentation
Important Financial Message from the Superintendent
As superintendent of North East ISD, I have been faced with many challenges – yet not any as tough as the current financial situation of the district. Just as the country is in an economic downturn, our households are hurting and NEISD is no different. We have been making steps to protect our future financial viability, and there is a long road ahead of us. The steps we are taking in preparation for the 2010-2011 budget year will help us avoid a financial crisis in future years. Click here for the entire message.
Superintendent's Report: Austerity Program Update and NESA
To reduce our costs, NEISD is focused on making our high schools more efficient while maintaining their success. For example, replacing our high school A/B block schedule with a seven-period day will reduce the number of teachers needed to staff each school. We have observed other districts replace their block scheduling successfully while still responding to new academic mandates, scoring well on standardized tests, competing strongly in extracurricular competitions and enrolling students in advanced courses. Click here to view the latest Board presentation about the district's spending reduction plan for the next three fiscal years - February 1 Board Presentation on Budget Austerity.
District staff has also been reviewing the high school magnet programs in an effort to improve efficiency in our operations. Listed below are Board presentations about the North East School of the Arts (NESA), which will remain open for the 2010-2011 school year.
March 24 Board Presentation on NESA Tuition Update
February 1 Board Presentation on NESA.
Benchmarking
Superintendent's Contract
School Finance 101: Funding of Texas Public Schools
The Texas Education Agency Office of School Finance has created a document "School Finance 101: Funding of Texas Public Schools" (April 2010) to provide a general overview of the funding received by Texas public schools. You can view this publication at http://ritter.tea.state.tx.us/school.finance/School_Finance_101.pdf.
Texas Education Agency Snapshot
2009 Convocation Video
At the beginning of the 2009-2010 school year, Superintendent Dr. Richard A. Middleton addressed employees through a series of videos. This "Virtual Convocation" covered school finance, accountability, district growth and wellness. The Convocation video uses the Windows Media Player to play. Be sure to have your speakers turned on for audio. click here