Deficit looms over Boyd ISD budget

By Richard Greene | Published Saturday, July 15, 2017
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Boyd ISD expects to dip into its reserves to cover expenses in 2017-18.

Based on figures from a first look at the budget Thursday night during the Boyd School Board meeting, the district will face a deficit of $620,693, including $612,719 on the maintenance and operations side.

The district officials anticipate a drop of $202,827 in revenues from $10.485 million to $10.282 million with preliminary expenses tallying $10.82 million.

Boyd Superintendent Ted West expects the district to trim the projected deficit over the next month before it is adopted Aug. 21. The district will hold a workshop Aug. 14.

“We’ll trim as much as we can. We’ll continue doing what we do,” West said. “We’ve got a healthy fund balance. We’ve been able to save when we needed in the past for tough times. This is one of the tough times. How much of the fund balance we’ll use is something we’ll have to address.”

The district has $7.237 million in the maintenance and operations reserves balance and another $301,986 in the interest and sinking fund reserves. The district will pull some money out of the interest and sinking reserves to cover the $7,974 projected shortage in the debt service account.

A significant drop in total property values has heavily impacted the loss in revenue. The district’s tax roll is expected to come in at $505.7 million, which is down $249 million in two years.

The district will get its certified values at the end of the month.

“The loss in mineral values has us in a bind,” West said.

The district is also facing the loss of the Additional State Aid for Tax Reduction (ASATR), which West estimates could be around $600,000. He added that the district’s total tax roll and enrollment will affect the impact.

“The ASATR fiscal cliff is here,” he said. “It’s not as bad as we were looking at two to three years ago. It’s still a significant amount of money that the students of Boyd ISD will be lacking for their education.”

In covering the deficit, Boyd School Board President Ernest Partin said the district will remain “focused on kids and do what’s best for the community.”

Partin added: “Our goal is to balance the budget, and it’s tough with mineral values being down.”

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