Analyzing M&O

Hico ISD is a small school district with a refined ADA of 528.364.  Our district has suffered financially due to rapidly declining enrollment.  Over the past 4 years, we have made numerous cuts in personnel and continue to analyze the operations of our district looking for areas in which we can decrease spending.

     Hico is not a property rich school district.  Therefore, we rely heavily on funding from the state.  Our current WADA is 846.266, with a RACR per WADA at $4,897.  The Tier 1 Allotments from the state total $2,453,885.  We have a high percentage of economically disadvantaged students which allows us to receive additional compensatory ed funds ($404,099).   Other sources include Career Tech allotment ($303,084), Special Education ($372, 581), Gifted and Talented allotment ($18,565) and a bilingual allotment ($21,054).   The M&O revenue from local taxes is $1,794,083. 

     When comparing the source of funding with allocations and expenditures, I believe there is no question that Hico ISD is making excellent budgeting decisions.  We are fortunate to have an outstanding business manager and superintendent who are not only knowledgeable and intelligent, but also work very well together.  The budgeting decisions of our district are beyond reproach.

     As in most districts, the majority of our funds are spent on teacher salaries.  The state currently requires that 52% of comp ed funds are spent on instruction.  Due to our lack of funds and efforts to keep the number of staff necessary to provide the best instruction possible, we spend the other 48% of comp ed funding on salaries and other areas.  This is becoming more and more necessary as our funding decreases.  We try to make cuts in areas where students will be the least affected.  Unfortunately, we have already made cuts in those areas and are now having to make decisions that negatively affect class size.  Our teachers provide before and after school tutorials which allows us to code part of their salary to comp ed funds.  This seems like an effective budgeting decision as it will free up money in other areas that might normally be coded to salaries.

     The Career and Technology program at HISD is another area worth mentioning.  Most of our Career Tech courses are technology and agriculture.  The additional funding provided for CTE is spent on teacher salaries and instructional supplies.  We have considered cutting personnel in the area of CTE, but realized that the teachers are “paying for themselves” with the additional funding.  Cutting CTE teachers, means cutting CTE courses which results in fewer CTE funds.  That does not seem like a wise business decision.  We are always looking for way to add CTE courses that will meet the needs of our students.

     Hico ISD’s Team of Eight has some very difficult budgeting decisions to make in the coming months.  From combining campuses to cutting personnel, there will be very little good news coming from the business office.  However, the teachers, parents and community have a great amount of confidence and trust in the superintendent and the board.  I have no doubt they will continue to make the best decisions for our district during these difficult times.