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We believe every child deserves the highest quality education. - Allen ISD Belief Statements Introductory Section

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Page 1: We believe every child deserves the highest quality ... › web › Finance › PDF › 2008Intro_Section.pdf · We believe every child deserves the highest quality education. We

We believe every child deserves the highest quality education.

- Allen ISD Belief Statements

Introductory Section

Page 2: We believe every child deserves the highest quality ... › web › Finance › PDF › 2008Intro_Section.pdf · We believe every child deserves the highest quality education. We

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Administration Building 612 East Bethany Drive, Allen, Texas 75002

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Victoria Sublette, President Gary Stocker, Vice President

Benny Bolin, Secretary Mark Jones, Member

Louise Master, Member Lois Lindsey, Member Jayne Grimes, Member

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Dr. Ken Helvey, Superintendent Sheri Sides, Deputy Superintendent

Mary Clark, Assistant Superintendent Learner Services Dr. David Vroonland, Assistant Superintendent Administrative Services

Mark J. Tarpley, CPA, Chief Financial Officer Kent Turner, Executive Director of Human Resources

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Mark J. Tarpley, CPA, Chief Financial Officer Scott Weber, Director of Finance and Operations

Laura Edwards, Administrative Assistant

Introductory Section 1

Page 3: We believe every child deserves the highest quality ... › web › Finance › PDF › 2008Intro_Section.pdf · We believe every child deserves the highest quality education. We

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STB Architects 8144 Walnut Hill Lane, Suite 460 Dallas, Texas 75231

AAuuddiittoorrss Rutherford, Taylor & Company, P.C. 2802 Washington Street

Greenville, Texas 75401

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Fulbright & Jaworski 2200 Ross Avenue, Suite 2800 Dallas, Texas 75201

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First Southwest Company 777 Main Street, Suite 1200 Fort Worth, Texas 76102

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Gay, McCall, Isaacks, Gordon & Roberts 777 East 15th Street Plano, Texas 75074

Thompson & Knight LLP 1700 Pacific Avenue, Suite 3300

Dallas, Texas 75201

Walsh, Anderson, Brown, Schulze & Aldridge, PC Rapier, Wilson & Wendland, PC

6300 La Calma, Suite 200 Austin, Texas 78752

103 W. McDermott

Allen, Texas 75002

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American National Bank 720 South Greenville Avenue Allen, Texas 75002

Introductory Section 2

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Introductory Section 3

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Introductory Section 4

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Allen Independent School District

The Allen ISD Mission Statement

In Allen ISD, in every school, every day,

every child will be provided with

engaging school work.

Executive Summary

We are pleased to present the 2008/09 budget for the Allen Independent School District. The budget has been prepared in accordance with state regulations and local policies covering the required twelve-month period from July 1 through June 30.

Allen ISD has a rich heritage of providing the best possible education for its students. Voices from the past speak to the emphasis that Allen has always placed on a quality education program. Allen ISD’s actions of today aptly echo these sentiments from the past. We know it today as the “Allen Way.”

For the seventy-fifth anniversary of Allen ISD held in 1985, Mr. L. C. Summers collected remembrances from former students of Allen ISD describing the district as far back as the early 1900’s. An excerpt from these recordings by former Superintendent W. C. Moseley (1944-1950) sums it up like this – “….but there is something unique about Allen. It is a school-minded community and it is my desire and my hope and my wish that the Allen community in the years ahead will continue to have the same type, the same unique strong school-minded community in the years ahead that they had in the years gone by.”

Introductory Section 5

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Executive Summary (Cont).

And thus today the Allen Way is still as strong as ever. Allen’s belief statements reflect that we are a school-minded community.

� We believe every child deserves the highest quality education.

� We hold ourselves accountable to every child who walks through our door.

� We believe the development of citizenship in all students is essential to a complete education.

� We are responsible for building upon the sense of community we have inherited.

� We believe the development of leadership throughout the organization is critical to our success.

These beliefs are the constant for Allen ISD from days as a rural education system begun in 1886 as a common district to its formation as an independent school district in 1910 to today’s modern and complex educational system.

The organization of this document fulfills a number of needs. First and foremost, the budget document reflects the district’s roadmap of resources used to achieve its goals. The document is prepared in a manner to help our constituents, staff and Board of Trustees understand how resources are being used and to what end all desire to see accomplished. Lastly, the document has been prepared to achieve the Meritorious Budget Award status from the Association of School Business Officials for the seventh consecutive year.

The allocation of resources is designed to maximize student achievement. We believe that the district is accountable to meet the needs of all its students. Focusing resources to accomplish this end is of highest priority. Campus leadership is actively involved in making focused requests that target dollars to improve student performance.

One former student said it well about his children’s education . . . “that they will have received the benefits of a school system which has been nurtured by the pioneer spirit and is flourishing in a community that still believes – education is the answer.”

“They were a people with a set determination, but with all the hard times they went through, they still wanted the school and the best community they could have. They looked at their school with pride.”

- L. C. Summers

Introductory Section 6

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Executive Summary (Cont).

The district’s budget is organized into four separate sections: Introductory, Organizational, Financial, and Informational.

� Introductory Section

The Introductory Section provides a complete overview of the entire budget document. The Introductory Section is the budget in narrative form rich with charts, tables and graphs to assist the reader. This section is organized in the same order as the rest of the document.

� Organizational Section

The Organizational Section defines Allen ISD – who we are, where we are located, how our organization is structured, how our financial system functions, what are our significant internal processes. This section informs the reader on the district’s account code chart, budget policies and development process, major board goals and strategies to accomplish these goals, and the budget administration and management processes.

� Financial Section

The Financial Section is typically what most consider to be “the budget.” This section is organized in a hierarchal order starting with a schedule of all funds followed by separate sections which break the budget down into the different funds. Charts, tables and graphs explain significant budget data. Included in this section are schedules for the General Fund, Student Nutrition Fund and Debt Service Fund. Schedules are also provided that focus on each campus and department.

� Informational Section

The Informational Section is the final section of the budget document. This section is full of explanatory information such as trends, projections, and historical data. Student demographic data, staffing history, academic achievement and performance rounds out this section.

Facts About Allen Independent School District

Allen ISD began in the 1880’s as a common school district. Allen ISD is a political subdivision of the State of Texas created in 1910 and is located in the southwest quadrant of Collin County, approximately 25 miles north of downtown Dallas. The District is bisected by State Highway 75, more commonly known as North Central Expressway, and lies between the cities of Plano to the south and McKinney to the north.

Many things have changed since the creation of the Allen Independent School District. During most of its existence, Allen ISD was a rural farming community growing cotton, wheat and corn. Not until the 1950’s did it begin to transform into a suburban district. The largest growth has occurred since the mid 1990’s.

Allen continues to grow rapidly due to its prime location along a major north/south corridor. Allen ISD welcomed back over 17,500 students for the 2008/09 school year. Approximately 132 Lovejoy ISD transfer students are included in the Allen ISD student enrollment count in grade 12. By 2009-2010, all Lovejoy ISD students will have transitioned from Allen ISD.

Allen ISD is governed by a seven member Board of Trustees. The Board’s primary role is policy making. The operational functions of the district have been delegated to the Superintendent and administrative staff. An organizational chart appears in the Organizational Section of this report.

Allen Independent School District operates 14 elementary schools, 3 middle schools, one ninth-grade center, and one high school. Disciplinary and non-disciplinary student referrals attend the alternative education center.

Introductory Section 7

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Facts About Allen Independent School District (Cont).

The student ethnicity percentages of the District are demonstrated in the following table:

Table 1 Student Ethnicity Percentages for Allen ISD

2004/05 2005/06 2006/07 2007/08 2008/09

Anglo 73.8% 71.1% 69.0% 65.9% 63.6%

Hispanic 10.3% 11.3% 11.7% 12.3% 12.8%

African-American 8.9% 9.4% 10.0% 10.7% 10.9%

Other 7.0% 8.2% 9.4% 11.1% 12.7%

The State of Texas currently mandates a pupil/teacher ratio of 22:1 for pre-kindergarten through 4th grade. The district sets caps for grades 5-12 at a target of 25:1. Some classes may exceed this target at certain times, but every attempt is made to keep within this threshold.

The instructional year for 2008-2009 is 178 days. Teachers will be assigned 9 days for in-service training and campus work days.

The school calendar determines the beginning and ending of the school year as well as defined holidays and in-service days. The district functions with 6 six-week reporting periods. The administration works with an advisory group from both the community and staff to prepare the school calendar.

Budget Policies & Development Procedures

As with any major requirement, rules and laws govern certain aspects of the process. The budgeting process in the State of Texas is no exception. The Texas Education Code Sections 44.002-44.006 establish the legal basis for school district budget development.

The District’s budget must be prepared by June 20 and be adopted by the Board of Trustees by June 30. A public hearing for the budget and proposed tax rate must occur before the Board adoption. The District’s budget must be legally adopted before the tax rate is adopted. This budget document meets these standards.

Introductory Section 8

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Budget Development Process

To achieve the lofty goal of exemplary status, the budget development process must be designed toward this end as well. The diagram below represents the complete budget process. The process encompasses an entire year prior to the implementation of the budget. The Board of Trustees and Budget Action Teams are involved at the very beginning. Table 2 outlines the annual budget process.

Table 2 Budget Development Process

The annual board goals will remain constant for two years in order to facilitate the planning and strategies necessary to accomplish the established board goals.

On October 11, 2005 approximately 40 staff and community members met to develop budget action plans for the 2007/08 budget process. This group used the Board goals and parameters to brainstorm critical needs using the nominal group technique to identify the most important action plans. Action plans were prioritized for Curriculum and Instruction, Staffin

g and Compensation, and Fiscal Planning.

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Introductory Section 9

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Introductory Section 10

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Introductory Section 11

Financial Structure & Basis for Accounting

The District maintains approximately 50 separate funds to account for its operations and special programs. Each fund varies in purpose. All funds, including campus and student activity funds, are accounted for on a district level basis. The fund accounting system defines each fund by fiscal period and a self-balancing set of accounts including assets, liabilities, fund equity, revenues and expenditures. There are four major fund groups. The Governmental Funds includes the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. Other funds maintained by the district include internal service funds and fiduciary funds.

Accounting records are maintained in accordance with generally accepted accounting principles (GAAP). Budgetary controls, which employ encumbering purchase orders to reserve commitments to the budget, include periodic amendments to ensure compliance with state law.

Account Code Structure

The budget worksheets throughout this document will be summarized at the fund, function and major object levels. The actual general ledger is made up of hundreds of detailed line items that are the building blocks of this document. In fact, the State of Texas mandates the account code structure used by all public school districts.

The account code defines transaction detail. The account code will tell the reader what was generally purchased, which campus made the purchase, the purpose of the purchase and the major source of funds used. A detailed revue of the account code structure is included in the Organizational Section of this document.

The Account Code Structure

AccountClassification

X X X - X X - X X X X X X - X X X - X - X X - X - X X

Major

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Fund Codes (1XX - 8XX)

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FunctionCodes (11 - 99)

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Combined Funds

The 2008/09 Combined Budget includes three major funds - General Fund, Student Nutrition Fund and Debt Service Fund. The total revenues and other resources for these funds are $153,866,705 and total expenditures and other uses are $157,690,488. The planned deficits will be covered with excess fund balance.

Table 4

General Fund

Student Nutrition

Debt Service

Total

REVENUE5700 Local 70,407,579$ 4,972,518$ 27,712,351$ 103,092,448$ 5800 State 48,618,232$ -$ -$ 48,618,232$ 5900 Federal -$ 1,156,025$ -$ 1,156,025$

Combined Fund Revenue Total 119,025,811$ 6,128,543$ 27,712,351$ 152,866,705$

EXPENDITURES11 Instruction 77,912,654$ -$ -$ 77,912,654$ 12 Media Services 2,248,895$ -$ -$ 2,248,895$ 13 Curriculum & Staff Development 1,863,487$ -$ -$ 1,863,487$ 21 Instructional Administration 1,098,429$ -$ -$ 1,098,429$ 23 School Administration 7,515,401$ -$ -$ 7,515,401$ 31 Guidance & Counseling 4,945,811$ -$ -$ 4,945,811$ 33 Health Services 1,168,554$ -$ -$ 1,168,554$ 34 Transportation 2,628,084$ -$ -$ 2,628,084$ 35 Student Nutrition -$ 5,903,543$ -$ 5,903,543$ 36 Co-curricular 3,167,122$ -$ -$ 3,167,122$ 41 General Administration 3,991,525$ -$ -$ 3,991,525$ 51 Plant Maintenance 13,719,001$ -$ -$ 13,719,001$ 52 Security 1,046,971$ -$ -$ 1,046,971$ 53 Technology 1,670,160$ -$ -$ 1,670,160$ 61 Community Services -$ -$ -$ -$ 71 Debt Services -$ -$ 28,004,851$ 28,004,851$ 81 Capital Projects -$ -$ -$ -$ 93 JJAEP Services 35,000$ -$ -$ 35,000$ 99 Administration 546,000$ 546,000$

Combined Fund Expenditure Total 123,557,094$ 5,903,543$ 28,004,851$ 157,465,488$

Net Revenue Over (Under) (4,531,283)$ 225,000$ (292,500)$ (4,598,783)$

OTHER SOURCES / USES7900 Other Resources 1,000,000$ -$ -$ 1,000,000$ 8900 Other Uses -$ (225,000)$ (225,000)$

Net Sources Over (Under) 1,000,000$ (225,000)$ -$ 775,000$

Net Revenue/Sources Over (Under) (3,531,283)$ -$ (292,500)$ (3,823,783)$

Beginning Fund Balance (Estimated) 39,683,288$ 1,903,301$ 10,252,193$ 51,838,782$

Ending Fund Balance 36,152,005$ 1,903,301$ 9,959,693$ 48,014,999$

Allen Independent School DistrictCombined Funds

Statement of Revenues and Expenditures (Budget)2008/09

Introductory Section 12

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General Fund

The General Fund is commonly referred to as the “Operating Fund” or “Local Maintenance Fund”. State aid and local tax revenue make up the bulk of revenues received by this fund. This fund is used to pay general operating expenses through out the district.

General Fund net revenue is budgeted to decrease $1.2 million or 1.1% over the 2007/08 fiscal year unaudited actual. The decrease is the result of lower returns on investments and less state aid.

The largest increase in expenditures for 2008/09 is for new teaching positions in the District and a pay raise of four percent of the midpoint salary within each pay grade.

The transitioning of Lovejoy ISD 7th through 11th grade students to their new secondary campus impacts budget growth to some degree. Approximately 140 Lovejoy students did not return to Allen ISD from 2007/08, which affected revenue and expenditure growth. Allen ISD will continue to educate current 12th grade Lovejoy ISD students through the remainder of their high school career.

The District’s General Fund surplus grew by over $6 million in 2007-2008. Fund balance levels are a sign of fiscal health. The district goal is to maintain at least a 15% ratio of fund balance to annual operating expenditures. Allen ISD’s fund balance is expected to exceed that level by topping 20%.

Introductory Section 13

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General Fund (Cont.)

Table 5

2004/05 Audited Actual

2005/06 Audited Actual

2006/07 Audited Actual

2007/08 Unaudited

Actual

2008/09 Adopted Budget

$ Increase/ (Decrease) Over

Prior Year

% Increase/ (Decrease) Over Prior

Year

LOCAL REVENUE SOURCES $ 71,448,789 $ 77,959,137 $ 80,024,789 $ 71,179,294 $ 70,407,579 (771,715)$ -1.10%STATE REVENUE SOURCES $ 17,794,910 $ 20,033,335 $ 33,521,492 $ 49,113,600 $ 48,618,232 (495,368)$ -1.02%FEDERAL REVENUE SOURCES $ 4,349 $ 10,227 $ - $ - $ - $ -

GENERAL FUND REVENUE TOTAL $ 89,248,048 $ 98,002,699 $ 113,546,281 $ 120,292,894 $ 119,025,811 (1,267,083)$ -1.06%

EXPENDITURES11 Instruction 52,870,897$ 59,433,116$ 63,635,624$ 70,271,121$ 77,912,654$ 7,641,533$ 9.81%12 Instructional Resource & Media 1,298,761$ 1,384,955$ 1,706,152$ 1,938,536$ 2,248,895$ 310,359$ 13.80%13 Curriculum & Staff Development 1,293,818$ 1,189,182$ 1,360,472$ 1,792,381$ 1,863,487$ 71,106$ 3.82%21 Instructional Administration 661,509$ 833,204$ 865,397$ 844,164$ 1,098,429$ 254,265$ 23.15%23 School Administration 5,388,692$ 5,857,274$ 6,107,523$ 6,994,870$ 7,515,401$ 520,531$ 6.93%31 Guidance and Counseling 3,138,069$ 3,114,797$ 3,644,702$ 4,132,668$ 4,945,811$ 813,143$ 16.44%33 Health Services 788,681$ 872,121$ 999,801$ 1,045,103$ 1,168,554$ 123,451$ 10.56%34 Student Transportation 1,669,635$ 1,867,172$ 2,132,825$ 2,394,729$ 2,628,084$ 233,355$ 8.88%36 Co-Curricular Activities 2,146,565$ 2,321,493$ 2,512,519$ 2,817,611$ 3,167,122$ 349,511$ 11.04%41 General Administration 3,047,908$ 3,136,062$ 3,517,831$ 4,169,813$ 3,991,525$ (178,288)$ -4.47%51 Plant Maintenance & Operations 13,541,564$ 15,327,218$ 15,607,911$ 15,564,648$ 13,719,001$ (1,845,647)$ -13.45%52 Security & Monitoring 996,215$ 1,013,255$ 910,618$ 909,588$ 1,046,971$ 137,383$ 13.12%53 Data Processing/Technology Services 1,532,302$ 1,043,020$ 1,292,680$ 1,359,256$ 1,670,160$ 310,904$ 18.62%61 Community Services 6,393$ -$ 2,810$ -$ -$ -$ 71 Debt Service -$ -$ -$ -$ -$ -$ 81 Capital Acquisition 221,176$ 285,850$ 90,749$ 409,287$ -$ (409,287)$ 93 Payments to JJAEP 22,490$ 87,380$ 90,115$ 47,205$ 35,000$ (12,205)$ -34.87%99 Administration -$ -$ -$ -$ 546,000$ 546,000$

TOTAL EXPENDITURES 88,624,675$ 97,766,099$ 104,477,729$ 114,690,980$ 123,557,094$ 8,866,114$ 7.73%

NET REVENUE OVER (UNDER) 623,373$ 236,600$ 9,068,552$ 5,601,914$ (4,531,283)$ (10,133,197)$ -180.89%

OTHER SOURCES 569,868$ 1,009,041$ 1,979,569$ 822,000$ 1,000,000$ 178,000$ 21.65%OTHER USES 751,100$ 607,600$ -$ -$ -$ -$

NET SOURCES OVER (UNDER) (181,232)$ 401,441$ 1,979,569$ 822,000$ 1,000,000$ 178,000$ 21.65%

NET REVENUE/SOURCES OVER (UNDER) 442,141$ 638,041$ 11,048,121$ 6,423,914$ (3,531,283)$ (9,955,197)$ -154.97%

BEGINNING FUND BALANCE 21,131,071$ 21,573,212$ 22,211,253$ 33,259,374$ 39,683,288$ 6,423,914$ 19.31%(ESTIMATED)

ENDING FUND BALANCE 21,573,212$ 22,211,253$ 33,259,374$ 39,683,288$ 36,152,005$ (3,531,283)$ -8.90%

Allen Independent School DistrictGeneral Fund Budget

2008/09(by Function Code)

Introductory Section 14

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Introductory Section 15

General Fund (Cont.)

Table 6 Allen Independent School District

General Fund Major Changes 2008/09

Increase / Decrease Millions

Property value and tax levy increase (net decrease): $1.4

� $520 million taxable value increase (8.4%) � State maximum M&O tax rate of $1.00 � Local Option increase - $0.04

Lovejoy tuition loss ($.27)

State aid decrease anticipated in 08/09 ($.8)

Salary cost increases ($9.5)

� Additional positions for enrollment growth � Approximately 4% increase for all employees � Campus Intervention Specialists (Strategic Plan Item #13) � Raptor System paraprofessionals

The above constitutes the major changes affecting Allen’s budget growth. Early in the 2008/09 budget process, costs were held at or below the 2007/08 spending. New dollars were added only where absolutely necessary. The budget deficit of $3.5 million will be covered with fund balance.

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Student Nutrition Fund

The Student Nutrition Fund accounts for the operation of the district’s cafeteria meal program. The 2008/09 budget totals $5,903,543 which represents a 10.7% increase from 2007/08. The increase is a result of higher food and labor costs expected for 2008/09. The emphasis of the Student Nutrition program is to provide a nutritional meal program without the fiscal support from the General Fund. The fund contributes significantly to kitchen construction upgrades each year.

Meal prices for 2008/09 will increase five cents over last year. The district meets or exceeds the mandated nutritional requirements set by national and state agencies.

The following table compares audited actuals to budget for a five-year period:

Table 7

2004/05 Audited Actual

2005/06 Audited Actual

2006/07 Audited Actual

2007/08 Unaudited

Actual

2008/09 Adopted Budget

% Increase/ (Decrease) Over Prior

Year

School Lunches $ 3,884,421 $ 4,377,531 $ 4,766,864 $ 4,847,937 $ 4,768,020 -1.65%Other $ 183,267 $ 155,220 $ 179,722 $ 274,605 $ 204,498 -25.53%TOTAL $ 4,067,688 $ 4,532,751 $ 4,946,586 $ 5,122,542 $ 4,972,518 -2.93%

State Matching Funds $ 25,791 $ 29,581 $ 29,334 $ 29,868 $ - -100.00%TOTAL $ 25,791 $ 29,581 $ 29,334 $ 29,868 $ - -100.00%

Federal Meal Reimbursement $ 553,782 $ 669,462 $ 887,233 $ 962,782 $ 936,989 -2.68%Federal Commodities $ 213,250 $ 274,935 $ 149,434 $ 224,015 $ 219,036 -2.22%TOTAL $ 767,032 $ 944,397 $ 1,036,667 $ 1,186,797 $ 1,156,025 -2.59%

TOTAL REVENUE $ 4,860,511 $ 5,506,729 $ 6,012,587 $ 6,339,207 $ 6,128,543 -3.32%

EXPENDITURES35 Food Services

Payroll Costs 1,654,645$ 1,839,421$ 2,065,121$ 2,209,765$ 2,355,753$ 6.61%Professional & Contracted Srvs. 34,708$ 36,358$ 62,423$ 76,334$ 101,400$ 32.84%Supplies & Materials 2,380,516$ 2,687,362$ 2,780,533$ 2,996,174$ 3,387,240$ 13.05%Other Operating Expenses 49,487$ 48,686$ 42,918$ 48,368$ 59,150$ 22.29%Capital Outlay 46,180$ 159,639$ 36,333$ 420$ -$ -100.00%TOTAL 4,165,536$ 4,771,466$ 4,987,328$ 5,331,061$ 5,903,543$ 10.74%

NET REVENUE OVER (UNDER) 694,975$ 735,263$ 1,025,259$ 1,008,146$ 225,000$ -77.68%

OTHER SOURCES/USESTransfer in 126,893$ -$ 1,316$ -$ -$ Transfer out to General Fund (232,288)$ (220,815)$ -$ (225,000)$ -100.00%Transfer out to Construction (775,000)$ -$ -$ (1,050,397)$ -$ -100.00%TOTAL (648,107)$ (232,288)$ (219,499)$ (1,050,397)$ (225,000)$ -100.00%

NET REVENUE / SOURCES OVER (UNDER) 46,868$ 502,975$ 805,760$ (42,251)$ -$ -100.00%

BEGINNING FUND BALANCE 589,949$ 636,817$ 1,139,792$ 1,945,552$ 1,903,301$ -2.17%

ENDING FUND BALANCE 636,817$ 1,139,792$ 1,945,552$ 1,903,301$ 1,903,301$ 0.00%

LOCAL REVENUE SOURCES

STATE REVENUE SOURCES

FEDERAL REVENUE SOURCES

Allen Independent School DistrictStatement of Revenue and Expenditures

Student Nutrition Fund2008/09

Introductory Section 16

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Debt Service Fund

Table 8

General Obligation Debt

Revenue Bonds

Total Debt Service

REVENUE SOURCESLocal Revenues 27,712,351$ -$ 27,712,351$ State Revenues -$ -$ -$ TOTAL 27,712,351$ -$ 27,712,351$

EXPENDITURES71 Debt Service Principal 13,094,363$ -$ 13,094,363$

Debt Service Interest 14,880,488$ -$ 14,880,488$ Fees 30,000$ -$ 30,000$ TOTAL 28,004,851$ -$ 28,004,851$

NET REVENUE OVER (UNDER) (292,500)$ -$ (292,500)$

OTHER SOURCESTransfer in from Local Maintenance -$ -$ -$ Transfer In from Athletic Fund -$ -$ -$ TOTAL OTHER SOURCES -$ -$ -$

NET REVENUE / SOURCES OVER (UNDER) (292,500)$ -$ (292,500)$

BEGINNING FUND BALANCE (ESTIMATED) 10,245,086$ 7,107$ 10,252,193$

ENDING FUND BALANCE 9,952,586$ 7,107$ 9,959,693$

Allen Independent School DistrictCombined Debt Service Fund

2008/09 Budget

The reserve level for the General Obligation Bond Fund represents about 35 percent of the total annual debt service obligation. A significant payment is due by August 15th, and a large balance is needed to cover this payment. The tax rate necessary to support the above debt service is $0.4303. This is the same rate adopted in 2007/2008.

As a result of the District’s strong debt position, the bond ratings for outstanding debt were upgraded by Moody’s and Standard & Poors to Aa3 and AA- respectively.

Introductory Section 17

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Introductory Section 18

Debt Service Fund

The primary type of debt instrument issued by the District is the General Obligation Bond. This debt instrument requires voter approval. Another name is the Unlimited Tax Bond due to voter authorization of the annual tax rate subject to the amount of outstanding debt as a function of taxable wealth.

In January 2008, the District sold the final remaining bonds for the 2002 and 2003 authorizations.

Table 9 Bond Authorizations

Authorization Election Date Issued thru 6/30/08 Remaining $ 55,500,000 September 2002 $ 55,500,000 $ -0-

71,500,000

As of June 30, 2008, the District has $273,791,580 in outstanding general obligation bonds. The outstanding debt represents 4.09% of the total taxable wealth of the district. Bond sales typically occur in January of each year.

The next bond election will be November 4, 2008. A complete discussion of the projects included in the bond proposition are included in the Financial Section of this book.

The inclusion of construction reports in this budget document is for information purposes only. The district’s enrollment growth continues to require the building of new schools and facilities. The Board of Trustees rely upon community volunteers to advise them on facility needs. Bond elections over the past decade have averaged one every 3-5 years. Typically, each bond authorization takes 4-5 years to sell as property values and tax rate limits allow. The next bond election for future needs has been called for November 4, 2008. Bonds will be sold in amounts necessary to accomplish the planned projects.

The table on the following page recaps the projects and historical spending (actual or planned) for each of bond authorizations currently under use.

$ September 2003 71,500,000$ $ -0-

-0-Total $ 127,000,000 $

Capital Projects

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Capital Projects (Cont.)

Introductory Section 19

TTaabbllee 1100

Capital Projects

Project Number Project Description

2004/05 Fiscal Year

Activity

2005/06 Fiscal Year

Activity

2006/07 Fiscal Year

Activity

2007/08 Fiscal Year

Activity

2008/09 Fiscal Year

Budget *

201 Dillard -$ -$ -$ -$ -$ 202 Bolin Elementary -$ -$ -$ -$ -$ 203 Kerr Elementary -$ -$ -$ -$ -$ 204 Ereckson Middle School 2,499,728$ 69,197$ -$ -$ -$ 206 Marion Elementary School 24,698$ -$ -$ -$ -$ 207 Boon Elementary School 11,202,275$ 882,399$ -$ -$ -$ 208 Chandler Elementary School 2,908,203$ 11,290,860$ 398,924$ 7,113$ -$ 209 Evans Elementary School -$ -$ 2,040,055$ 12,348,795$ -$ 210 Elementary #15 -$ -$ -$ 2,063,206$ -$ 302 Cafeteria Renvoations Boyd Elemantary School -$ -$ -$ -$ -$ 304 Cafeteria Renovations Reed Elementary School -$ -$ -$ -$ -$ 305 Cafeteria Renvoations Allen High School 1,456,827$ 2,205,858$ 11,000$ -$ -$ 401 Additions Ford Middle School -$ -$ -$ -$ -$ 402 Allen High School Phase 2B -$ -$ -$ -$ -$ 404 Allen High School Phase 3A 20,196$ -$ -$ -$ -$ 406 Renovations/Additions Boyd Elementary School -$ -$ -$ -$ -$ 407 Renovations/Additions Reed Elementary School -$ -$ -$ -$ -$ 408 Renovations/Additions Rountree Elementary School -$ -$ -$ -$ -$ 409 Renovations/Additions Story Elementary School 781,938$ 1,253$ -$ -$ -$ 409 Covered Walkways - Green Elementary School 87,792$ -$ -$ -$ -$ 409 Covered Walkways - Norton Elementary School 98,223$ -$ -$ -$ -$ 409 Covered Walkways - Anderdson Elementary School 91,366$ -$ -$ -$ -$ 410 Renovations/Additions Vaughan Elementary School 544,732$ -$ -$ -$ -$ 411 Lowery Freshman Center 5,305$ 1,057,608$ 502,951$ 2,236,014$ -$ 412 Portables 660,060$ 93,246$ -$ -$ -$ 413 Allen High School Phase 2C -$ -$ -$ -$ -$ 414 HVAC/Roofs 234,756$ 1,902,064$ 1,773,979$ 1,214,670$ -$ 415 Technology 2,206,514$ 1,041,916$ 1,899,143$ 2,244,581$ -$ 418 AHS House #7 159,724$ 1,464,378$ 6,443,673$ 569,123$ -$ 501 Keyless Entry Upgrades 117,494$ 286,604$ -$ 601 Land/Land Improvement 1,103,115$ 1,712,266$ 6,125$ 57,519$ -$ 744 Allen High School Parking Lot 286,268$ 1,408,081$ -$ -$ -$ 750 Ag Facility 142,539$ -$ -$ -$ -$ 800 Administration Building & Relocation 11,711$ 65,813$ 1,894,418$ 7,781,950$ -$ 801 Annex Building & Relocation 1,339,080$ 373,012$ -$ 805 Transportation 29,247$ 620,776$ 669,663$ 893,675$ -$

Grand Total 24,555,219$ 23,815,715$ 17,096,505$ 30,076,262$ -$

* Allen ISD is holding a $219.0 million dollar bond election on November 4, 2008. If approved, the 2008/09 Capital Budget will be amended to reflect the bond election results.

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Property Values

For the last ten years, the District’s taxable value growth has averaged 14.3%. In 2008 the increase was 7.9%. The lower increase is a result of the weakened economy and fewer housing starts in the area.

However, anticipated new commercial construction combined with housing construction will continue to keep the value growth at significant levels. Several large land tracts in the Allen ISD boundary along Highway 75 and Highway 121 are seeing extensive commercial development.

The following chart in Table 11 depicts the increasing growth rate of property values.

Table 11 Taxable Value Projection

Introductory Section 20

1.21131.4616

1.78452.1357

2.6606

3.22363.8404

4.12884.4351

4.8533

5.39466.1812

6.7019

7.06267.5678

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Valu

esB

illio

ns

Tax Year

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Property Values (Cont.)

On January 1 each year the property values are rendered for appraisal. The appraisal process is conducted by the Collin Central Appraisal District (CCAD). Properties are required to be appraised at 100% of market value. A ten percent appraisal cap controls runaway property value growth.

The CCAD submits preliminary values to the school district by May 1. These values are usually a conservative estimate of the ultimate certified values that come by July 25th. The preliminary values are good estimates upon which to base the tax levies for the operating and debt service budgets. Once the certified values are received by the district, the tax rate adoption and budgeting process can be completed for the new fiscal year. See Table 12 for a recap of the schedule for certification of the appraisal roll:

Table 12 Taxable Values At A Glance

Introductory Section 21

2008 - 2009

� Total approximate increase $520 million

� Tax Value Growth Rate – 8.4%

� Collin Central Appraisal District (CCAD )

� January 1 Rendition Date � January 8 CCAD confirms above projection � May 1 Preliminary Values � June 7 Taxable Values for Budget Purposes � July 25 Certified Tax Values

Table 13 Property Values (in millions)

2004 2005 2006 2007 2008

Total Market Value $ 5,327.3 $5,761.7 $ 6,399.3 $ 7,328.9 $ 7,721.3 Total Exemptions/Productivity Loss $ (892.2) $ (908.4) $( 1,004.7) $(1,147.1) $(1,019.4)

Taxable Value $ 4,435.1 $4,853.3 $ 5,394.6 $ 6,181.2 $ 6,701.9 Freeze Taxable Value $ (124.8) $ (144.1) $ (169.4) $ (206.2) $ (253.2)

Net Taxable Value $ 4,310.3 $4,709.2 $ 5,225.2 $ 5,975.0 $ 6,448.7

For budget purposes, the tax levy is computed off of the Net Taxable Value at a 99% collection rate. The actual taxes to be collected on the Freeze Taxable Values are added back. The Freeze Taxable Value is the property values of patrons over 65 years old. Their tax levy is frozen when they turn 65 and can never rise any higher no matter what happens to property values or tax rates. The combination of the Net Taxable Value levy and the levy on Frozen Values equals the Total Levy for the year.

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Tax Rate

The tax rate for 2008/09 remained at $1.4703. House Bill 1 (HB1) enacted by the Third Special Session of the 79th

Legislature significantly reduced the district’s maintenance and operations tax rate. Formerly, Allen ISD had been at the maximum $1.50 tax cap for five consecutive years. HB1 compressed the M&O rate to $1.33 in 2006/07. The district opted to increase this rate by the allowable four cents to $1.37. In 2007/08, the M&O rate was compressed even further to $1.04, the highest allowable M&O rate without voter approval. The Allen ISD M&O rate for 2008/09 is remaining at $1.04.

The tax rate is comprised of two component rates each having separate purposes and state laws governing them – Maintenance and Operations (M&O) rate and Debt Service rate.

Table 14 Tax Rate Comparison

1.40

33

1.46

00

1.50

00

1.50

00

1.50

00

1.50

00

1.50

00

1.37

00

1.04

00

1.04

00

0.48

96

0.30

20

0.33

14

0.30

80

0.37

23

0.43

35

0.41

25

0.40

51

0.43

03

0.43

030.0000

0.2000

0.4000

0.6000

0.8000

1.0000

1.2000

1.4000

1.6000

1.8000

2.0000

1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Com

bine

d Ta

x R

ate

Local Maintenance Debt Service

Note: For 1999/00 and prior years, the tax rate to repay Contractual Obligations was part of Debt ServiceRate. In 2006/07, legislative action compressed the M&O tax rate to $1.33 plus a $0.04 local option. In 2007/08

the M&O tax rate was compressed even further to $1.00 plus a $0.04 local option.

The M&O tax rate supports the major operational and educational programs of the district for such expenses as staff salaries and benefits, utilities, supplies and materials, equipment, and many other costs. The rate for 2008/09 is $1.04.

The Debt Service tax rate supports the repayment of debt authorized by district voters. The total amount of debt payable each budget year less any applicable state aid is divided by the taxable property values to determine the rate. The maximum debt service tax rate is $0.50. Allen ISD’s 2008/09 debt service tax rate is $0.4303.

Introductory Section 22

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Tax Rate (Cont.)

What does the proposed tax rate mean to local homeowners? The following example demonstrates the effect of the tax rate. The example also shows the effect of a property value inflationary adjustment to reflect how property value changes also affect the total tax levy.

Table 15 Example of Tax Levy on a $215,000 Residence

2004/05 2005/06 2006/07 2007/08 2008/09

Residence Value 185,000$ 195,000$ 200,000$ 205,000$ 215,000$

Less: Homestead Exemption (15,000)$ (15,000)$ (15,000)$ (15,000)$ (15,000)$

Adjusted Taxable Value 170,000$ 180,000$ 185,000$ 190,000$ 200,000$

Rate per $100 Value 1.9335$ 1.9125$ 1.7751$ 1.4703$ 1.4703$

Tax Levy 3,287$ 3,443$ 3,284$ 2,794$ 2,941$

Every homeowner receives a state mandated homestead exemption of $15,000 to reduce the amount of taxes owed. An additional exemption is provided for those 65 years and older. Their tax levy is frozen at the amount when they receive the exemption and can never go up even as their home value or tax rate increases.

The State of Texas places limits on how much tax rates can increase over the previous year’s rate. Each taxing entity must calculate its rollback rate. This is the maximum rate that can be adopted before an automatic rollback election takes place. If a rate is adopted that is higher than the rollback rate, the voters have an opportunity to affirm the proposed higher rate through an election or roll it back to the rollback rate.

The rollback rate is the amount of state and local revenue (on a per pupil basis) for the prior year divided by the new year’s taxable values. The maximum that this rate can be for 2008/09 is $1.04.

Individual property value increases are capped annually at ten percent. This prevents the housing market value increases from becoming rampant.

Enrollment Growth

Allen ISD continues to respond to the enrollment growth needs of the district. According to the District’s demographer, Population and Survey Analysts, Allen ISD’s enrollment should peak in 2014. At that point the district will be built out within its 29 square miles and no longer subject to the heavy growth of new houses which typically bring new students.

Growth in the number of students means growth in special sub-population groups such as bilingual students or special education students. Classroom space is impacted by these groups and the addition of regular education students. Enrollment provides the basis for staffing. However, the ADA is the basis for computing state aid. The correlation between the two is very important.

Introductory Section 23

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Introductory Section 24

Enrollment Growth (Cont.)

Allen ISD enrollments continue to rise at a steady rate. Total K-12 enrollments in Allen rose from 8,781 in 1997 to over 17,500 for 2008/09. Annual enrollment increases ranged from 550-650 students until 2001, which showed an increase of over 1,000 students. The greatest amount of growth since 1997 has occurred in areas now served by Kerr, Bolin, Boon and Marion Elementary Schools. The opening of Mary Evans Elementary School will help address elementary enrollment growth in west Allen.

The District’s demographer predicts an enrollment of over 21,000 students by 2014/15. Other previous district demographic reports have also substantiated this predicted enrollment number.

This projected enrollment growth over the next five years will continue to effect the educational capacity of Allen ISD’s elementary campuses. The opening of elementary schools over the next few years will relieve existing schools and reduce the dependence on portable buildings.

Long range enrollment projections prepared by the district’s demographer are shown in the following table:

Table 16

12,585

13,864

14,800

15,885

16,437 17,050

17,511

18,285

18,945

19,495 20,00020,

20,500 21,000

12,000

13,000

14,000

15,000

16,000

17,000

18,000

19,000

000

21,000

22,000

2002

/03

2003

/04

2004

/05

2005

/06

2006

/07

2007

/08

2008

/09

2009

/10

est.

2010

/11

est.

2011

/12

est.

2012

/13

est.

2013

/14

est.

2014

/15

est.

Student Enrollment History & Projections

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State Aid

The state aid system is made up of a multi-tiered funding formula that considers a district’s property wealth per student as a key variable in relation to tax effort by the district. House Bill 1 (HB1) has substantially altered the sources of funding to a greater reliance on state aid and a new business tax to take the place of property taxes.

Key State Funding Components for Allen ISD

� Compressed Maintenance and Operations Tax Rate - $1.00

� Local Option Tax Rate $0.04

� Hold Harmless Target Revenues per WADA at $5,171

� High School Allotment - $275 per 9-12 ADA

� Equalized Wealth Level - $374,200

� A guaranteed yield to $50.98 per penny of tax effort on the 4 cent local option

Legislative Issues

Constitutionally, the Texas Legislature is required to meet in regular session for 140 days every two years to enact legislation and set a two year state budget. Revenue estimates are determined by the State Comptroller. The 81st

Legislative Regular Session will be January through May 2009.

In 2006, the Supreme Court rendered a decision on the lower state court’s ruling that the existing school funding situation in Texas is unconstitutional. The Courts held that the state funding system was unconstitutional in regard to the $1.50 tax rate. The legislature successfully passed HB1 which met the court’s requirement.

The 80th regular session had little impact on the preparation and adoption of the 2008/09 budget, as no major finance legislation was passed. However, the 81st session beginning in January 2009 is expected to address school finance reform. Particular areas expected to be addressed include adjustments to the Target Revenue per WADA, tax rate limitations, and the state accountability system.

Introductory Section 25

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Staffing

The Allen ISD staff continues to grow. With the influx of new students into the district, new staff is essential to provide the necessary educational services ranging from teachers to bus drivers. Table 17 shows the staffing history for Allen ISD.

Table 17

2004/05 2005/06 2006/07 2007/08 2008/09Professional(Superintendent, Assistant Superintendent, Director, Other Professional, Principal, Assistant Principal, Counselor, Librarian, Nurse)

204 206 195 210 227

Teachers(Teacher - Secondary; Teacher - Elementary; Teacher - Special Education)

946 1,009 1,047 1,098 1,160

Other(Paraprofessional, Food Service, Bus Driver, Hourly, Other)

473 504 587 645 651

Total 1,623 1,719 1,829 1,953 2,038

Student Enrollment 14,723 15,885 16,437 17,050 17,511

Staffing Ratios: Teaching Staff 15.6 15.7 15.7 15.5 15.1 Total Staff 8.8 8.3 9.0 8.7 8.6

Allen Independent School DistrictStaffing History

Salary & Benefits

Outside economic factors drive much of what goes on fiscally in Allen ISD. Collin County, in general, is considered a fast growing area. Property values, one of the key variables in public education funding, have been rising dramatically across the county for the past decade. Property value increases in neighboring districts like Frisco, Plano or McKinney, as well as Allen ISD, fuel their growing budget requirements which include salary and benefit increases.

The largest single component of a school district’s operating budget (approximately 80%) is its salary and benefit costs. New resources in these districts applied to salary and benefit increases place economic pressures on Allen ISD whether or not its property values increase at an equivalent rate. Typically, when one of these districts sets a higher minimum teacher pay rate and a salary increase for all of its employees, Allen ISD must act accordingly or lose ground in recruiting and retaining its staff.

The Board of Trustees and the Budget Action Teams annually identify salary and benefits as one of the most important budget goals. Recruiting and retaining highly qualified staff for all positions is critical to the overall success and performance of our district. The Board of Trustees approved a 4% midpoint raise for all employees. The new starting teacher salary is $44,500. This amount is $1,875 higher than in 2007/08.

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Academic Programs

The intensity of our curricular and co-curricular programs combined with a highly qualified staff make Allen Independent School District a premier school district in the state and nation.

Elementary students receive a balanced offering of core subjects of math, language arts, social studies and science. In addition, students can participate in art, band, orchestra and other programs.

Special sub-populations of students like those with limited English proficiency are offered outstanding services. This segment of the district is a fast-growing population. Parents are offered adult literacy programs to mirror the learning of the students.

Middle schools are grades 7-8. Required courses beyond the core subjects include reading and keyboarding. Eighth graders may take Algebra 1 for one high school credit.

A wide variety of electives are offered at the middle school level. They include band, orchestra, art, athletics, cheerleading, advanced technology courses and many others. Special needs students receive assistance through alphaphonics, special education, speech therapy and English as a second language.

The Lowery Freshman Center gives all ninth grade students a chance to transition from middle school to high school. Though Lowery is considered a separate campus in every aspect, it is linked strongly to the high school campus by its curriculum and co-curricular programs.

Athletes, career and technology students, and band students are some that take classes at both campuses. Shuttle buses transport students throughout the day. The Freshman Center operates a schedule to accommodate students shuttling to and from the high school.

The high school focuses on student opportunities and success for future endeavors. The 90-minute periods enhance the learning process. A number of dual credit college courses are offered by Collin County Community College in a special section of the high school designed for that purpose.

Academic Rating

Allen ISD has been rated as a Recognized School District by the Texas Education Agency based upon results from the Spring 2008 TAKS (Texas Assessment of Knowledge and Skills) test. Texas school districts and campuses receive exemplary, recognized, acceptable or unacceptable ratings based on overall scores and scores from three separate categories including African American, Hispanic, and Economically Disadvantaged.

Allen students showed significant improvements “across the board” on the 2008 TAKS test according to results officially released by the TEA on August 1. Ten campuses are rated Exemplary for 2008. Seven more campuses earned Recognized ratings and one earned an Acceptable rating.

A total of 98% of all Allen ISD students passed the reading portion of the exam, which was administered in April. The passing rate was 95% for mathematics, 98% for writing, 99% for social studies and 91% for science. Last year’s total scores were: 97% for reading; 92% for mathematics, 98% for writing, 97% for social studies, and 85% for science.

Allen ISD’s most challenging area continues to be science, however significant gains were made in 2008. The percent met standard for all students rose to 91% from 85%; African American students rose to78% from 65%; Hispanic students rose to 81% from 72%; White students rose to 94% from 89%; and Economically Disadvantaged students rose to 77% from 65%.

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The “Allen Way”

For the past four years, Allen ISD has devoted a considerable amount of focus on defining the “Allen Way" and developing our capacity to institutionalize this philosophy in everything we do.

Generally speaking, education reform has focused on three strategies: continue to increase performance standards; assess student performance; and rate districts and campuses on their effectiveness at achieving these standards. In Texas, we have worked within this system for many years and AISD has been very successful at demonstrating its academic impact on students. However, we know that profound learning goes far beyond the results identified through the testing system and a restrictive "one size fits all" instructional approach might make average schools good but it will not produce great schools. This fact, along with the changing needs of our digital natives and the demand for a graduate that is considered "ready" for post-secondary opportunities, are compelling reasons to reposition our focus on the work we provide for our students.

The Allen Way begins with our core beliefs which speak not only to what we believe about our students, but also mandates our responsibility to cause these beliefs to be realized in every child and every member of our organization.

The Allen Way: Belief Statements

We believe every child deserves the highest quality education.

We hold ourselves accountable to every child who walks through the door.

We believe the development of citizenship in all students is essential to a complete education.

We are responsible for building upon the sense of community we have inherited.

We believe the development of leadership throughout the organization is critical to our success.

Academic Assessment & Accountability

The concept of accountability has been on the scene of education in the state of Texas for two decades. Allen Independent School District takes very seriously the idea of accountability with the understanding that we can improve student performance.

State testing requirements and No Child Left Behind (NCLB) will help Allen ISD focus on stronger accountability. The concept of Adequate Yearly Progress (AYP) through NCLB sets the stage for demonstrating incremental increases in proficiency for all students (White, African-American, Hispanic, Economically Disadvantaged, Special Education, and Limited English Proficient).

NCLB insists that students have a safe environment in which to learn and that those school districts only employ “highly qualified” teachers.

Allen ISD believes that assessment provides the information necessary to improve student performance through instructional decision-making, setting priorities, allocating resources, and for accountability to students, parents, the community, and the mandated state and federal education authorities.

Allen ISD is committed to the use of a variety of assessment techniques to capture both the breadth and depth of student learning over time. Another commitment is to a scaffold sequence of assessments that administers to all students an array of tests that serve as screening instruments for program identification and placement as well as student support team resources. Within that structured sequence, test scores are valid for two years, thereby reducing the need for specific testing of individual students for initial screening to meet program criteria.

Introductory Section 28

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Academic Assessment & Accountability (Cont.)

Tests administered by Allen ISD include: �� ITBS – Iowa Test of Basic Skills, Form M

Introductory Section 29

�� TAKS – Texas Assessment of Knowledge and Skills

�� Losgramos, Level 8 �� CogAT – Cognitive Abilities Test, Form 6

�� SDAA II – State Developed Alternative Assessment II

�� PSAT – Preliminary Scholastic Aptitude Test

�� TPRI – Texas Primary Reading Inventory �� SAT – Scholastic Aptitude Test �� RPTE – The Reading Proficiency Test in

English �� ACT – ACT Assessment �� Naglieri Nonverbal Ability Test (NNAT) �� TELPOP – Texas English Language

Proficiency Observation Protocols

The following tables show the district’s performance on the TAKS, SAT and ACT tests. These are but some of the tests used to benchmark student performance.

Table 18 Allen ISD 2008 TAKS Results

Allen ISD District Summary 2008 Scores (Blue) & Comparison to 2007 (Red)(Percentage of students meeting the Texas minimum standard)

READING MATH WRITING SOC. ST. SCIENCEAll Students 98 97 95 92 98 98 99 97 91 85

African Am. 97 93 87 80 98 98 97 93 78 65

Hispanic 96 95 89 85 99 95 97 94 81 72

White 99 98 96 94 98 98 99 97 94 89

Econ.Disadv. 94 92 86 80 96 95 95 90 77 65

Table 19

529 526 530 529 529540 541 541 543 554

0 0

521 512 516

1069 1067

1592 1584 1599

0200400600800

10001200140016001800

2003/04 2004/05 2005/06 2006/07 2007/08

Allen High School SAT History

Critical Reading (formerly called "Verbal") Math Writing Composite

Note: Writing test added in 2005 / 06

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Introductory Section 30

Academic Assessment & Accountability (Cont.)

Table 20

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

2007/082006/072005/062004/052003/04

23.5

23.5

23.5

22.9

22.6 22

.8

22.7

22.8

22.4

21.7

24.1

23.3

23.4

22.8

22.7

23.6

24.0

24.1

23.4

23.4

23.0

22.9

23.0

22.5

22.2

Allen High SchoolACT History

Composite English Math Reading Sci Reason

School Financial Integrity Rating System of Texas

Senate Bill (SB) 218 of the 77th Legislature (2001) authorized the implementation of a financial accountability rating system, which is officially referred to as School FIRST. The primary goal of School FIRST is to improve the management of school district financial resources. School FIRST was developed in consultation with the Comptroller of Public Accounts, and its development also benefited from the many comments that were received from school district and regional education service center personnel. The School FIRST rating is based upon an analysis of staff and student data reported for the school year and actual financial data.

Allen ISD received a rating of Superior Achievement under the School Financial Integrity Rating System of Texas (FIRST), which is the highest rating possible.

Each school district must hold an announced public meeting to distribute the financial management report that explains the district’s performance under each of the 24 indicators and the district’s rating. Each district is encouraged to provide additional information in the financial management performance report that is beneficial to taxpayers by noting special circumstances, if any, that may have affected the district’s performance indicators.

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Future Budget Years

The District’s budgeting process is more than just funding the next fiscal year’s operations. The Board of Trustees and district administration anticipate major budget concerns two to five years into the future. A list of these budget considerations is shown below:

1. Revenue limitations from HB1 will significantly impact future revenue growth. 2. Olson Elementary School is expected to open in August 2009. The impact of this will be

approximately $2 million. 3. Salary and benefit costs will continue to escalate due to competition for staff between

neighboring school districts. The budget scenarios anticipate 3% growth in payroll costs. 4. The district enrollment growth will require new staff increases both for direct instructional

positions and support positions.

Moderate deficit budgets are expected for the next several years. Fund balance should remain above the board goal of 15% of expenditures.

Table 21

2007/08 Unaudited 2008/09 Budget

2009/10 Projected

2010/11 Projected

2011/12 Projected

Revenues 120.3 119.0 130.1 138.2 141.9Expenditures (114.7) (123.6) (131.8) (139.4) (146.9)Net 5.6 (4.6) (1.7) (1.2) (5.0)

Other Sources 0.8 1.0 1.0 1.0 1.0Other Uses 0.0 0.0 0.0 0.0 0.0Net 0.8 1.0 1.0 1.0 1.0

Beginning Fund Balance 33.3 39.7 36.1 35.4 35.2Ending Fund Balance 39.7 36.1 35.4 35.2 31.2

Future Budget Projections (in millions)

Budget Contact

Individuals who have questions regarding this budget document should contact Mark Tarpley, Chief Financial Officer at (972) 747-3358 or via email [email protected].

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Summary

It is always difficult to match limited resources with the many needs of our educational system and there is never enough to satisfy all needs. However, we believe that this budget document demonstrates reasonable and prudent progress in an effort to satisfy the needs of the students, families and members of our community. It is our goal to provide the best possible education for our students, while still being good stewards of taxpayer money.

We appreciate the support provided by the Allen ISD Board of Trustees for the development, implementation, and maintenance of an excellent educational program for the children of our District.

Respectfully,

Ken Helvey, Ed.D. Mark J. Tarpley, CPA Superintendent of Schools Chief Financial Officer

Introductory Section 32