Now that the Texas Legislature has finalized a budget for the 2012-13 biennium, school districts statewide can get on with completing their own financial plans.

For the past several months, the Tomball Independent School District and district Chief Financial Officer Jim Ross have worked on preparing a budget, but have faced a sizable road block: an unknown quantity for revenue.

The district was able to pinpoint how much it would likely spend in the coming fiscal year, but while Texas lawmakers hunkered down in Austin in first their regular session, then in a special session, it was impossible for Tomball ISD to formulate a revenue budget since a new financing plan had yet to be approved by the state.

Earlier this month, the Legislature passed Senate Bill 1, which details how state school districts would receive funding, but also included approximately $4 billion in cuts.

The cuts were felt statewide, with several school districts having previously announced massive teacher layoffs in anticipation of less revenue. However, Tomball ISD announced it would not be laying off teachers and stated it had money in reserves to deal with any potential shortfall.

Last week, that expectation came to fruition as Ross presented to the Tomball ISD board of trustees a plan that included $79 million in revenue for the district’s General Fund, $2.5 million short of expenditures, and $18.7 million in revenue for the Debt Service Fund, more than $2.1 million short of costs.

“This is not enough revenue to fund the budget,” Ross told the school board.

That proposal left the district more than $4.6 million short in the General Fund and Debt Service Funds combined. However, as predicted, Tomball ISD should have enough in reserves to cover the shortfall, Ross explained.

According to Ross, Tomball ISD has approximately $16 million in Committed Reserves, money the district has set aside for “fiscal stabilization” and future growth. In his proposal to the board, Ross called for the use of money from the “fiscal stabilization” portion of the Committed Reserves to make up the difference in the General Fund.

Additionally, the district reportedly has enough funds in the “Fund Balance Reserves,” or money left over from previous years’ budgets, to cover the $2.1 million deficit in the Debt Service Fund.

What should come as good news to district tax payers is that for the fourth consecutive year, Tomball ISD will retain its total tax rate of $1.36.

Ross explained that the General Fund budget will be funded primarily through maintenance and operation (M&O) tax rate of $1.01. Local property taxes will make up more than $53 million of the General Fund budget.

The Interest and Sinking (I&S) rate, which funds the Debt Service Fund, will also remained unchanged at $0.35.

Ross said the district retained the tax rate despite massive state cuts so that the economy may recover.

“We wanted to allow some time for the economy to go through some recovery,” he said.

However, soon district taxpayers will likely see a hike in their tax rates.

“We are going to have to raise the tax rate eventually,” Ross said. “Just holding it down is hurting us.”

Where Tomball ISD, like most other Texas school districts, saw the biggest shortfall in funding came in State Educational Funding. Proposed at approximately $20.3 million, Ross said that amount “should have been a lot higher.”

Texas was facing a budget shortfall of about $15 billion less than in its last budget due primarily to a business tax that did not meet financial expectations and a loss in sales tax as the economy collapsed.

In order to approve the budget, the board of trustees must hold a public hearing, likely to be held on Aug. 8. The board must also approve the expenditure of Committed Reserves for the General Fund.

For more information on the Tomball ISD budget, visit tomballisd.net.

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