Budget savings from the prior year and proceeds from a maintenance bond combine to provide funding for Dew Independent School District which saw property values drop almost 25 percent this year.

DISD trustees approved a budget of $2.06 million for 2010-11 and combined tax rate of $1.105202 per $100 assessed property valuation, a fraction of a cent more than last year.

The budget approved in 2009 was $2 million, but the district carries over $400,000 from that amount.

Dew is considered a property wealthy school district and must share property tax revenue with the state for distribution to property poor districts.

In past years the district has sent 75 percent of its tax collections to the state under the Robin Hood school financing program.

This year, because of a drop in natural gas values, DISD will surrender about 82 percent of its tax revenue.

Property taxes are expected to generate $3.89 million this year, compared to $4.8 million in 2009, a drop of almost $1 million.

State recapture, however, is based on 2009 tax revenues instead of current revenues, creating a dilemma in funding school operations.

“We lost 25 percent in tax revenue because of lower tax revenues,” superintendent Thomas Weeaks says.

Of the $3.89 million in estimated tax revenue this year, the district will give $3.17 million to the state, or more.

Weeaks and business manager Sally Gregory question how the state arrives at natural gas values. The state is using a 2009 figure of $2.99 per 1,000 cubic feet and the average state price was $3.65 mcf.

“The state used the lowest price of the year, not the average price,” Weeaks says.

The DISD superintendent and business manager explain that they have estimated recapture at $3.1 million and the state is estimating $3.65 million. In an annual accounting next spring, the district and state will settle on the exact figure.

At the lower figure, that leaves DISD just $725,828 in property tax revenue to pay school expenses.

The difference is made up from foundation and state funding, federal funds and cafeteria receipts totaling $1.91 million.

Weeaks and Mrs. Gregory describe DISD funding as a flow through system in which the district surrenders property tax money and has it replaced through state and federal programs.

A year ago, Dew voters approved a maintenance bond to pay for items such as school buses, air conditioning equipment and other big ticket expenses.

The bond is $3 million repayable over 10 years. Benefit of a maintenance bond is that a district keeps 100 percent of proceeds instead of sharing a portion.

DISD took $600,000 in bond proceeds for school maintenance in 2009-10 and will use the same amount this year. Repayment is $244,119 per year.

“Thank God our taxpayers had the foresight to approve the maintenance bond,” Weeaks declares.

“Our board has been on top of this and was instrumental in educating the public to pass the bond,” he adds.

The maintenance bond is the only long term debt the district is carrying.

Largest expense in the new budget is $903,367 for teacher salaries. Other payroll costs are $211,899 for support personnel, $131,497 for administration and $8,100 in longevity pay.

Instructional and operating costs are pegged at $136,300, which includes supplies, testing materials, counselor and health services, library supplies, technology, staff development, athletic supplies and insurance, and student awards.

Other operating expenses, $375,035, go to school board training, appraisal and audit, transportation, buildings and grounds, utilities, property insurance, Freestone Navarro Bi-County Coop and Region 12 Educational Service Center.

Cafeteria expenses are $72,000, offset by $62,500 in federal funds and meal charges.

Property taxes are broken down into $1.04 per $100 assessed valuation for operations and 6.5206 for bond repayment.

DISD was slated to hold a trustee election in November, but none of the four trustees whose 4-year terms are expiring are opposed, so an election is not required.

Set to start new terms in November are board president David Fowler, Chuck Lopez, Laurie Lane and Eric Simpson.