Fort Bend Independent School District NEWS RELEASE FROM COMMUNITY RELATIONS Mary Ann Simpson, Chief Communications Officer maryann.simpson@fortbendisd.com    281.634.1100

**  FOR IMMEDIATE RELEASE  **

Fort Bend ISD Board adopts resolution declaring financial exigency

FORT BEND ISD — The Fort Bend ISD Board of Trustees approved a resolution declaring financial exigency at the March 8 regular board meeting.  As a matter of sound financial management, the district is in a position in which it must reduce costs significantly in upcoming school years. Expenses in other areas, including campus and department budgets, have already been reduced annually over the past several years.  Since the major portion of the district’s operating budget (approximately 90%) consists of employee salaries and benefits, the district must now seriously consider eliminating positions to adopt a balanced budget for the 2010-2011 school year. 

To put the situation in perspective, it is important to note that the district adopted a deficit budget of $18.6 million in 2009-2010, and is projected to have a continued deficit budget of $18 to $20 million in 2010-2011. Without significant changes in the district’s expenditure patterns, or a change in the state funding formula, the district is projected to be fiscally unstable within three years—unless serious actions are taken.

Both the Board and administration know these are difficult decisions to make; however, they recognize the need to act is now.  In order to implement financial processes to best address the fiscal needs of the district, it was necessary for the district to declare a reduction in force in accordance with Board Policy DFF.  The resolution passed by the Board allows the administration to move forward in its planning to restructure its programs in such a manner to allow the district to remain fiscally sound.  

Financial exigency is viewed positively by the financial community, including the district’s bond holders, in that the Board of Trustees is taking a positive action to reduce continued deficit spending.  The district will continue to conduct budget workshops and analyze all data and available cost-cutting options up until a final budget for the 2010-2011 school year is adopted in June.

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