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Forney ISD finance update: district reports near-complete tax collections; TEA funding projection shows potential overpayment
Summary
District staff reported fiscal-year-to-date revenues and expenditures, high tax-collection rates and a Texas Education Agency projection that may result in an overpaid state funding balance; the district said it will record any overpayment as a liability.
John Chase, who presented the district's monthly financial report, told the board the general fund had received $151,000,000 in revenues and expended about $156,000,000 through the February reporting period (eight months into the fiscal year). Tax collections were cited as the largest revenue item for February, totaling $13,000,000; Chase said the district has collected roughly 97% of its tax levy to date.
Chase said the district's cash and investment report showed cash on hand across the general fund, food service, debt service and capital projects of about $23,037,000 at the end of the month.
Why it matters: The report frames the district's near-term fiscal position as it proceeds through the school year and plans for capital spending and staffing. Board members and administrators use the monthly statements to monitor cash flow and make procurement decisions for construction and furnishing of new facilities.
TEA funding projection and overpayment discussion
Chase also summarized a Texas Education Agency (TEA) update to the district planning estimates (DPE) and local planning estimate (LPE). The update incorporates revised property values, tax collections and counts of economically disadvantaged students. Chase said TEA is making cash payments based on an LPE of just over 18,000 students while the district's DPE projects just over 17,100 students on an ADA basis.
On the funding projections, Chase said TEA's report showed a projected overpayment to the district of $10,900,000. He added that the district's internal calculations indicate the overpayment is likely closer to $5,900,000. Chase said any amount determined to be an overpayment will appear on the district's balance sheet as a liability and will not be counted as revenue or included in fund balance at year-end.
Board questions and context
No public questions were registered during the meeting's public forum. The board did not take action on the TEA funding projections at this meeting; the TEA update is informational and will be reflected in ongoing budgeting and year-end accounting work.
Chase also reported food-service revenues of about $7,000,000 and expenditures near the same amount; average daily lunch participation for the month was reported at about 50%. In the debt service fund, Chase reported revenue of $57,000,000 and expenditures of $54,000,000 through the reporting period.
Next steps: Staff will continue to monitor TEA updates, finalize year-end accounting and present required budgetary information to the board. Any material changes to the funding picture will be returned to the board for discussion.
