Education blog: Dallas ISD has more reserves than expected, but will still have to borrow $80 million
05:59 PM CDT on Tuesday, June 8, 2010
Dallas ISD will have more reserves than expected at the end of this month, but it still will have to borrow $80-million to make ends meet next school year, the district's chief finance officer said Thursday. Larry Throm also said that the district's tax rate is expected to go down slightly for 2010-11, saving the average property owner about $55. With the 2009-10 budget year ending June 30, Throm painted a mixed picture of school finances, showing that controls on spending have boosted the district's fund balance from about $37-million to $60-million. But that won't be enough cash on hand to end a cycle of borrowing that has kept the district afloat. In August 2008, the district borrowed $125-million to be able to meet payroll and other expenses; in August 2009, it borrowed $85-million in so-called "Tax Anticipation Notes." The money is paid back once tax collections start rolling in. The district is expected to borrow another $80-million in the next few months, Throm said. DISD's Board of Trustees is scheduled to discuss the $80-million borrowing plan at its meeting next week. As to the reserves, Throm said that a number of factors led to the increase, including additional revenues from the state and lower spending in some departments. However, the $60-million is still inadequate - slightly less