6 Nov 2008
District rules out further reduction in force
DALLAS-Dallas ISD Board trustees were updated today that the 2007-08 budget deficit, originally estimated at $64 million, has been lowered to approximately $52 million. The result is that the district will now have approximately $68 million remaining in its fund balance, up from an initial estimate of $56 million.
Additionally, the initial projected budget deficit for the current school year has been revised from $84 million to approximately $75 million. The savings realized as a result of the recent reduction in force and cuts to several programs have reduced the projected deficit to approximately $28.2 million.
The recent reduction in force cut the projected budget deficit by approximately $26 million. Additional program cuts in the areas of central services, capital outlay, overtime and stipends have further reduced the deficit by approximately $20.8 million.
"Because of the very difficult and painful choices that have been made over the course of the last couple months, the financial outlook has improved," said Superintendent of Schools Michael Hinojosa. "As a result, there will be no need for an additional reduction in force during the rest of the school year."
Superintendent Hinojosa noted that there are still other opportunities to reduce the deficit even further, including an ongoing request to state and federal officials for alternative funding, revenues from unexpected increases in average daily attendance and pending legal settlements.
"The worst-case scenario at this time is that the district will need to access the fund balance a second time for approximately $28 million," said Hinojosa. "That will still leave $40 million in the fund balance."
The district's financial team will present an updated 2008-09 budget to the board in December.