LGISD Weighs Pros and Cons of Changing Fiscal Year Timeline

Superintendent McHazlett lead a discussion about the possibility of changing the district’s fiscal year at April’s school board meeting.

Currently the fiscal year is Sept. 1-Aug. 31. The proposed change would be July 1-June 30 to align with academic year. Both pros and cons to making this change were addressed.

The Pros

• July 1-June 30 would align the fiscal year with the academic year.

• The campuses would have funds available to spend starting July 1 for that school year.

• It would eliminate earlyyear spending on prior budget. This aligns better with federal programs.

• Quarterly reports would align with calendar year quarters.

• There would be an easier year-end close during summer.

• The first year there would be a one-time fund balance increase due to 12 months of revenue with only 10 months of expenditures.

The Cons

• Certified property values arrive late July; preliminary vs. certified variance could force budget amendments and hearings.

• Reporting complexities (PEIMS, PEMS student data twice for conversion months).

• Possible inflated fund balance without matching cash flow; potential audit and reporting cost impacts.

• Need to coordinate with TEA, Region 13, auditors, appraisal district, tax collectors, banks, bond services, and staff.

• Micro-management of campus budgets required; training needed for campuses on spending across the revised year.

Timeline and Next Steps

This was a discussion only during this meeting. Additional information will be provided before any action at the next meeting.