District reports narrower year-end deficit than projected; expects deficit near $3M-$4M

The Northwest ISD finance director told trustees on Tuesday that preliminary year-end numbers showed a negative net change in fund balance of about $6.75 million, but updated state revenue adjustments should narrow that deficit to an estimated $3 million to $4 million.

Presenting the August financial report, the director said revenue and expenses were tracking normally for the early fiscal year and noted that the negative fund-balance figure reflected an interim position at the close of the prior year. "I think we're gonna be closer to $3,000,000 or $4,000,000 deficit at the end of this year," the presenter said, adding that TEA had updated its summary of finance and owed some funds to the district.

Debt service and timing: The report noted the district makes major debt service payments in August and February; one large payment shown on the report was approximately $49 million while the taxes collected to date were about $743,000 of an expected $178 million for the fiscal year, consistent with early-year timing for tax collections.

Why it matters: The district had adopted a $16 million deficit budget earlier; staff said midyear budget cuts and adjustments reduced last year27s projected shortfall substantially. The presenter said the auditor had arrived and that current estimates were accurate to a high degree, subject to audit confirmation.

Caveats: The presentation focused on August data, which the presenter warned contain limited information because the fiscal year had only just begun to record salaries and other recurring costs; the transcript did not include the full audited financial statements.

Next steps: Staff will finalize audited figures with the newly arrived auditor and report further updates to the board; no new board action on budget adjustments was taken during the meeting excerpt.