Coppell ISD’s estimated tax rate for the 2020-21 budget fell slightly, but the district could face a deficit of nearly $7 million.
Diana Sircar, the district’s chief financial officer, during Tuesday’s Board of Trustees meeting, said that the estimated revenue for the 2020-21 school year came in at $154 million with expenses surpassing $161 million, resulting in a possible deficit of $7.2 million.
Sircar said the district’s revenue is estimated to increase by $2.3 million (1.5%), mainly from a $3.7 million increase in state funding. Local revenues are expected to fall by $1.3 million. Expenses were projected to increase by $7 million (4.6%), led by instruction expenses rising $5.2 million.
Coppell ISD’s recapture payment to the state accounts for 21% of its expenses and is estimated to be around $35 million in 2020-21.
Revenue from the debt service fund was estimated at $35.3 million while expenses came in at $35.6 million, resulting in a potential $327,460 decline in fund balance. Sircar said this deficit will be covered by funds moved into debt service several years ago.
The reason for the assumed budget is due to the Dallas Central Appraisal District’s delay in certifying tax values because of COVID-19. Sircar said Coppell ISD used the estimated values received on July 23 to create its estimated budget.
She added the certified tax roll was released on Aug. 20, and the district will revisit the tax rates during its Sept. 14 meeting.
The Board of Trustees was presented with an estimated maintenance and operations (M&O) tax rate of $1.05 for every $100 of valuation – a reduction from last year’s $1.06 – and a debt services rate of $0.269 for every $100 of valuation. This is a slight increase from last year’s rate of $0.2626.
The proposed tax rates result in an overall reduction of $0.0072.
Sircar added that both the M&O and debt services rates will be recalculated once the final certified values are received. The Board of Trustees will adopt the 2020-21 tax rate in September.