Forney Independent School District Superintendent Michael Holland delivered a state-of-the-district update at the Forney Area Chamber of Commerce's monthly meeting on January, 9, 2014.
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Holland's update began by ripping the band-aid off the still fresh and healing wounds caused by the district's financial turmoil which began in 2011 when the district was overfunded by the Texas Education Agency (TEA) approximately $13.6 million after overinflated attendance numbers were submitted.
“We found out that we were bankrupt [in 2011]… our board of trustees had been blindsided. They had been led to believe that we had a pretty good fund balance … and that we had plenty of money sitting in our budget,” said Holland. “In reality, we had a negative $4 million fund balance.”
“Great news is, we came in and the board made some changes and ended up that year with about a $500,000 surplus in that budget,” said Holland.
Forney High School also experienced a broken water pipe in early 2012 that sent three to six inches of water across over 180,000 square feet. Holland said, “We were able to use some of that insurance money to get everything fixed back like it was and with good management from [Forney ISD CFO Lucas Janda and Assistant Superintendent of Operations Dr. Brian Zemlicka] overseeing that insurance claim we were able to put some money into the fund balance.”
Eight days after the flooding, Crosby Elementary was in the path of an EF3 tornado that swept across the Diamond Creek subdivision in Forney. “Fortunately those kids were all at another campus just like we had prepared for. Again, we managed that [insurance] money very well. We put new roofs on, we fixed things that needed to be done … and we were able to put some money back into the fund balance,” said Holland.
“We had a negative $4 million fund balance [in the 2010-11 school year],” said Holland. “I'm proud to tell you that after two years we actually were $1.2 million in the black.” The board cut its total expenditures from $60.1 million in the 2010-11 school year by $6.3 million to $53.8 million in the 2012-13 school year. In 2013-14, the Forney ISD is projecting a $4.3 million ending fund balance.
Holland says the district also cut 150 positions – all through attrition. “We didn't have to get rid of anyone, but if people left we didn't fill those positions. 28 percent of that was in administration.”
“These things can't be done without the leadership of a strong school board, without a community who believes, and staff members who are willing to roll up their sleeves, pull up their boots, and say lets get after it,” said Holland. He also credited the implementation of a financial calendar, the efficient management of major insurance claims, strong fiscal management, improving energy efficiencies, and the review of all contracts to ensure vendor accountability and cost effectiveness for our taxpayers.
While the future tax rates depend on the Texas Legislature, a pending lawsuit against the TEA, and appraisal values, Holland says he is optimistic there will be no tax increases over the next several years under the current financial system.
Financial goals
The Forney ISD has a goal to have $12 million in fund reserves by 2017 or 2018 – which may equal two months of operating costs.
Forney ISD audit reports
In 2010-11, the Forney ISD was presented with an audit report reflecting the $4.02 million deficit. The report further expressed a going concern opinion about the district's ability to continue operations as well as uncovering 17 financial compliance issues. At that time, the proposition to dissolve Forney ISD into Mesquite ISD was discussed by the TEA.
However, the 2012-13 audit report showes the significant progress made by Forney ISD with a $1.28 million fund balance. It further expressed a clean audit opinion and uncovered no financial compliance issues.
Standard and Poor's Forney ISD ratings
2010 – A+ with a stable outlook
2011 – BBB+ with a negative outlook
2012 – BBB+ with a stable outlook
2013 – A- with a stable outlook
Student to teacher ratio
The average class size has also dropped in the 2013-14 school year over last year. In 2012-13, the Forney ISD reported 8,540 students and 513 teachers for an average class size of 16.65 – which is skewed because of some intentionally small classes. In 2013-14, Forney ISD reported 8,650 students and 536 teachers for an average class size of 16.10. The Forney ISD also had 25 class size waivers in 2012-13 and only seven in 2013-14.
“We found out that we were bankrupt [in 2011]… our board of trustees had been blindsided. They had been led to believe that we had a pretty good fund balance … and that we had plenty of money sitting in our budget,” said Holland. “In reality, we had a negative $4 million fund balance.”
“Great news is, we came in and the board made some changes and ended up that year with about a $500,000 surplus in that budget,” said Holland.
Forney High School also experienced a broken water pipe in early 2012 that sent three to six inches of water across over 180,000 square feet. Holland said, “We were able to use some of that insurance money to get everything fixed back like it was and with good management from [Forney ISD CFO Lucas Janda and Assistant Superintendent of Operations Dr. Brian Zemlicka] overseeing that insurance claim we were able to put some money into the fund balance.”
Eight days after the flooding, Crosby Elementary was in the path of an EF3 tornado that swept across the Diamond Creek subdivision in Forney. “Fortunately those kids were all at another campus just like we had prepared for. Again, we managed that [insurance] money very well. We put new roofs on, we fixed things that needed to be done … and we were able to put some money back into the fund balance,” said Holland.
“We had a negative $4 million fund balance [in the 2010-11 school year],” said Holland. “I'm proud to tell you that after two years we actually were $1.2 million in the black.” The board cut its total expenditures from $60.1 million in the 2010-11 school year by $6.3 million to $53.8 million in the 2012-13 school year. In 2013-14, the Forney ISD is projecting a $4.3 million ending fund balance.
Holland says the district also cut 150 positions – all through attrition. “We didn't have to get rid of anyone, but if people left we didn't fill those positions. 28 percent of that was in administration.”
“These things can't be done without the leadership of a strong school board, without a community who believes, and staff members who are willing to roll up their sleeves, pull up their boots, and say lets get after it,” said Holland. He also credited the implementation of a financial calendar, the efficient management of major insurance claims, strong fiscal management, improving energy efficiencies, and the review of all contracts to ensure vendor accountability and cost effectiveness for our taxpayers.
While the future tax rates depend on the Texas Legislature, a pending lawsuit against the TEA, and appraisal values, Holland says he is optimistic there will be no tax increases over the next several years under the current financial system.
Financial goals
The Forney ISD has a goal to have $12 million in fund reserves by 2017 or 2018 – which may equal two months of operating costs.
Forney ISD audit reports
In 2010-11, the Forney ISD was presented with an audit report reflecting the $4.02 million deficit. The report further expressed a going concern opinion about the district's ability to continue operations as well as uncovering 17 financial compliance issues. At that time, the proposition to dissolve Forney ISD into Mesquite ISD was discussed by the TEA.
However, the 2012-13 audit report showes the significant progress made by Forney ISD with a $1.28 million fund balance. It further expressed a clean audit opinion and uncovered no financial compliance issues.
Standard and Poor's Forney ISD ratings
2010 – A+ with a stable outlook
2011 – BBB+ with a negative outlook
2012 – BBB+ with a stable outlook
2013 – A- with a stable outlook
Student to teacher ratio
The average class size has also dropped in the 2013-14 school year over last year. In 2012-13, the Forney ISD reported 8,540 students and 513 teachers for an average class size of 16.65 – which is skewed because of some intentionally small classes. In 2013-14, Forney ISD reported 8,650 students and 536 teachers for an average class size of 16.10. The Forney ISD also had 25 class size waivers in 2012-13 and only seven in 2013-14.