During a recent government meeting, officials discussed the financial status of the school district for the 2022-2023 fiscal year, revealing a significant revenue shortfall and outlining strategies to manage expenditures effectively.

The district reported a decrease in overall revenue of approximately $1.6 million, primarily attributed to a reduction in tax collections linked to a $100,000 homestead exemption and adjustments in property values. However, there was an increase in foundation school funding, which partially offset the losses. The general fund budget reflected a net loss of $1.8 million, while food service operations managed to maintain a surplus of $336,000.

In response to the financial challenges, district officials implemented several cost-saving measures. These included early spending cuts, which saved around $840,000, and reductions in staff development expenses, yielding an additional $260,000 in savings. Transportation costs also decreased due to fewer repairs and lower fuel usage, contributing to a total expenditure reduction of about $788,000.

The meeting highlighted the district's current fund balance, which stands at approximately $8.1 million after accounting for the year's losses. Officials noted a commitment of $50,000 annually towards the replacement of athletic turf at Riceburg Stadium, with a total of $400,000 set aside for this project.

Looking ahead, the district is optimistic about recouping some of the lost funds. They are working with the Texas Education Agency to recover approximately $690,000 of the $800,000 lost due to a CAD error, with expectations of receiving these funds in the next fiscal year. Additionally, potential recovery from a separate appraisal mistake could yield between $660,000 and $900,000, which would also contribute to future revenue.

Overall, the district is navigating a challenging financial landscape while proactively seeking solutions to stabilize its budget and maintain essential services for students.