Clear Creek Independent School District Fiscal Year

FY 2008 – 2009 Budget Detailed Budget Analysis

CLEAR CREEK INDEPENDENT SCHOOL DISTRICT League City, Texas

FISCAL YEAR 2008-2009 BUDGET

DETAILED BUDGET ANALYSIS

September 1, 2008 to August 31, 2009 As Adopted August 25, 2008

BOARD OF TRUSTEES

Stuart Stromeyer, President Dee Scott, Vice President Ken Baliker, Secretary Robert Davee Ann Hammond Ralph Parr Winifred Weber

ADMINISTRATIVE STAFF

Dr. Greg Smith, Superintendent of Schools (Effective January 2, 2008)

Dr. Steve Ebell Deputy Superintendent – Curriculum & Instruction Paul McLarty Chief Financial Officer Ron McPherson Associate Superintendent for Operations Tina Farrell Assistant Superintendent – Curriculum & Instruction Alex Torrez Assistant Superintendent – Secondary Education Holly Hughes Assistant Superintendent – Elementary Education Dr. David O’Neill Assistant Superintendent – Human Resources Sheila Haddock Director of Policy and Legal Affairs Elaina Polsen Director of Public Information

www.ccisd.net

FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District FY 2008 - 2009 Budget Table of Contents

Introductory Section: Executive Summary ...... 1 2008 - 2009 Board of Trustees and Administrators ...... 30

Organizational Section: The District ...... 35 Mission and Vision Statements ...... 36 Portrait of a Clear Creek Graduate...... 37 Strategic Planning at CCISD ...... 38 Strategic and Performance Goals...... 39 Organization Chart ...... 41 Budget and Financial Policies ...... 43 Budget Process ...... 49 Budget Calendar for the Year 2008-2009...... 53 Staffing Standards ...... 54 Budget Control and Management Process ...... 58

Financial Section: Financial Structure ...... 59 Governmental Funds Revenues, Expenditures and Changes in Fund Balance ...... 62 Proprietary Funds...... 63 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 64 General Fund...... 65 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 65 Analysis of General Fund Revenues ...... 66 Analysis of General Fund Expenditures...... 68 Analysis of Fund Balance...... 70 Special Revenue Funds ...... 71 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 72 Analysis of Special Revenue Fund Revenues ...... 73 Analysis of Special Revenue Fund Expenditures...... 74 Debt Service Funds ...... 75 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 76 Analysis of Debt Service Fund Revenues ...... 77 Analysis of Debt Service Fund Expenditures...... 78 Schedule of Aggregate Debt Service ...... 79

FY 2008 – 2009 Budget Detailed Budget Analysis

Estimated Overlapping Debt ...... 80 Capital Projects Funds ...... 81 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 82 Capital Projects Revenue...... 83 Current Approved Bond Programs ...... 84 Recently Completed and In-Progress Capital Projects ...... 85 Three Year Capital Improvement Plan ...... 86 Enterprise Funds...... 87 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 88 Internal Service Funds ...... 89 Combined Statement of Revenues, Expenditures and Changes in Fund Balance ...... 90 Supporting Financial Schedules ...... 91 Combined Statement of Expenditures by Function and Object Code ...... 92 Overview of Account Codes ...... 96 Basic System Code of Composition ...... 97

Schools and Programs: Schools: High Schools Clear Brook High School...... 101 Clear Creek High School ...... 102 Clear Horizons Early College High School...... 103 Clear Lake High School ...... 104 Clear Path Alternative School...... 105 Clear Springs High School ...... 106 Clear View High School ...... 107 Intermediate Schools Brookside Intermediate School ...... 108 Clear Creek Intermediate School ...... 109 Clear Lake Intermediate School ...... 110 Creekside Intermediate School ...... 111 League City Intermediate School...... 112 Seabrook Intermediate School ...... 113 Space Center Intermediate School...... 114 Victory Lakes Intermediate School...... 115 Webster Intermediate School...... 116 Westbrook Intermediate School ...... 117 Elementary Schools Armand Bayou Elementary School...... 118 Henry F. Bauerschlag Elementary School...... 119 James F. Bay Elementary School ...... 120 Brookwood Elementary School ...... 121

FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Lake City Elementary School ...... 122 Falcon Pass Elementary School ...... 123 Lloyd R. Ferguson Elementary School ...... 124 Darwin L. Gilmore Elementary School ...... 125 Art & Pat Goforth Elementary School ...... 126 P.H. Greene Elementary School ...... 127 Walter Hall Elementary School ...... 128 I.W. & Eleanor Hyde Elementary School ...... 129 C.D. Landolt Elementary School ...... 130 League City Elementary School...... 131 Margaret S. McWhirter Elementary School ...... 132 Dr. Sandra Mossman Elementary School ...... 133 North Pointe Elementary School ...... 134 Ralph Parr Elementary School...... 135 G. W. Robinson Elementary School...... 136 James H. Ross Elementary School ...... 137 LaVace Stewart Elementary School...... 138 John F. Ward Elementary School ...... 139 Arlyne & Alan Weber Elementary School...... 140 Wedgewood Elementary School ...... 141 G.H. Whitcomb Elementary School ...... 142 Edward H. White II Elementary School...... 143

Departments Office of the Superintendent...... 144 Office of Curriculum and Instruction ...... 145 Office of Secondary Education ...... 146 Office of Elementary Education ...... 147 Office of Policy and Administrative Services ...... 148 Office of the Chief Financial Officer ...... 149 Office of Public Information ...... 150 Office of Human Resources ...... 151 Office of the Chief Technology Officer ...... 152 Office of Support Services ...... 153

Informational Section: The Economy ...... 155 State and Local Funding of School Districts in Texas ...... 158 Current School Finance System...... 159 Tax Information...... 162 Current Student Enrollment...... 169 Student Enrollment Projections ...... 170 Debt Schedules ...... 171 Financial Forecasts...... 175 Governmental Funds ...... 176 General Fund ...... 177

FY 2008 – 2009 Budget Detailed Budget Analysis

Capital Projects Funds ...... 182 Debt Service Funds ...... 186 Special Revenue Funds...... 187 Educational Performance Measures...... 188 Financial Performance Measures...... 196 District Achievements ...... 202 Employee Resource Allocations ...... 203 Notice of Public Meeting on Budget and Proposed Tax Rate ...... 204 Glossary of Terms ...... 205

FY 2008 – 2009 Budget Detailed Budget Analysis

September, 2008

Board of Trustees Clear Creek Independent School District 2425 East Main St. League City, TX 77583

Dear Board Members:

We are proud to publish the Fiscal Year 2008–2009 Budget to the Board of Trustees and to the community. We welcome the opportunity to present and discuss operational plans and related financial impact with all interested parties. Interaction among interested groups consistently leads to operational and educational improvements, which become available to students of the Clear Creek Independent School District (CCISD).

The development, review, and consideration of the FY 2008-2009 Governmental Fund Budgets (the General Fund, the Special Revenue Funds, the Capital Projects Funds, and the Debt Service Funds) were completed with a detailed and exhaustive review of every revenue and expenditure item within the context of the District's Mission Statement, Strategic Goals, Operational Goals, Performance Objectives, and Board Policy. Information on each of the fund budgets is provided in this budget document.

We have also included financial information on the District’s Proprietary Funds for comparative purposes. The largest fund in this group is the Food Service Fund which is treated as an Enterprise Fund at Clear Creek ISD. The Food Service Fund, along with the General and Debt Service Funds, are the only budgets that must be legally adopted by the Board of Trustees.

The document is organized into the following sections:

• Introductory Section - Introduces the reader to the document as a whole. It highlights important information contained in the budget. Users rely on this section to get an overview - a snapshot of what they can expect to find in the rest of the document.

• Organizational Section - Provides the context and framework within which the budget is developed and managed. The context for the budget is substantially predicated on the type and level of service to be provided to the students of the community. The framework also includes the District's organizational structure as well as the controls that direct and regulate the development and administration of the budget.

• Financial Section - Presents the heart of the school budget document. This section includes a description of the District’s financial structure. It also includes financial schedules that present the adopted budgets for the District compared with the results of past budget plans.

• School and Programs - Provides the Mission Statements carried out by the school or program, objective methods of results by school or program, and includes the resources, both personnel and dollars, allocated to the school or program to carry out the stated mission.

• Information Section – Provides information on the local economy and a brief narrative of the Texas funding system along with recent legislation and court cases that may significantly impact the direction of educational funding in Texas. It includes more detailed schedules and charts outlining district operations as well as a three year financial forecast for all governmental funds.

The information included in the budget document is structured to meet the requirements of the Meritorious Budget Award (MBA) of the Association of School Business Officials International (ASBO) 1 FY 2008 – 2009 Budget Detailed Budget Analysis

and the Distinguished Budget Presentation Award (Budget Awards Program) of the Government Finance Officers Association (GFOA).

To receive these awards, a school entity must publish a budget document as a policy document, as an operations guide, as a financial plan, and as a communications medium. We believe our current budget conforms to the requirements of both programs. We are submitting this document to ASBO and GFOA to determine its eligibility for these awards.

These awards represent the highest level of recognition in budgeting for school entities. Their attainment represents a significant accomplishment by a school entity and its management. The awards are made after comprehensive review by a panel of independent budget professionals. Using extensive criteria, the reviewers not only evaluate the effectiveness of the budget in meeting the program criteria, but also provide commentary and feedback to the submitting entity as a basis for improving the presentation of the District's financial and operational plan.

While these awards would be a great accomplishment for the District, our most important concern in the presentation of the budget data is to improve the quality of information provided to our community concerning the District's financial plan for the educational programs and services for the 2008-2009 fiscal year.

♦ Mission Statement, Vision Statement, and Strategic Goals

As part of the budget development process the Board of Trustees and Administration reviewed the District's Mission Statement, Vision, Core Values, and Strategic Goals. Based on this foundation, operational goals and performance objectives were developed and reviewed with the Board of Trustees. The budget is an instructionally driven process. It is a balance of policy choices. It also represents a responsive balance between the educational needs of students and the ability of the community and the state to provide the necessary financial support to serve them.

Mission Statement The mission of the Clear Creek Independent School District is to educate all students to succeed, to equip them to contribute to the community and to instill in them a vision to excel.

Vision Statement The Clear Creek Independent School District is a highly educated and diverse community committed to excellence in education, ensuring all students graduate ready to meet the challenges of an ever-changing world with the desire to be life-long learners.

♦ Strategic Goals

The Strategic Goals that guided the preparation of this year’s budget include: • Improved student achievement • Physical, social and cognitive development for individual success • Involvement of parents/community in education process • Safe and effective learning environments • Efficient and effective management of resources • Implementation of efficient and effective processes

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♦ District Achievements

Clear Creek Independent School District is a leader in the field of education in Texas. This is evident by the many academic, financial, operational and administrative awards that the District has earned over the last few years. A partial list of these achievements is provided below:

Academic Success: • The District has been named a Recognized school district for eleven of the last twelve years. No other large school district in Texas can make that claim. A Recognized rating is the second highest academic rating in Texas’ accountability system. A large district is defined as one with more than 25,000 students. Texas has more than 1,037 school districts. • All of the District’s twenty four elementary schools are rated either Exemplary – the highest academic rating in Texas’ accountability system – or Recognized. • Forty seven percent (47%) of all CCISD campuses are rated Exemplary. • Fifty percent (50%) of the District’s high schools are either Exemplary or Recognized. • LaVace Stewart Elementary School was named a Blue Ribbon School of Excellence. Stewart is one of only 23 districts in the State of Texas and one of only 287 nationwide to achieve this honor.

Financial Success: • The District received the Distinguished Budget Presentation Award from the Government Finance Officers Association for the third consecutive year. • The District received the Meritorious Budget Award from the Association of School Business Officials, International for the first time this year. • The District received the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association for the second consecutive year. • The District also received the Certificate of Excellence in Financial Reporting from the Association of School Business Officials International for the second consecutive year. • The District achieved a rating of Superior Achievement under the standards set by the Texas State Legislature for the sixth consecutive year. • The District’s underlying credit rating was upgraded in April 2008 from AA- to AA by both Standard and Poor’s Investor Service and Fitch Ratings Service.

Operational Success: • CCISD successfully completed over $350 million in new school construction and capital renovations over the last five years. • The District suffered a direct hit by a Category 2 hurricane on September 13, 2008. Hurricane Ike’s eye passed directly over the District with winds in excess of 100 miles per hour and a twelve to fourteen foot tidal surge. Damage estimates could top $20 million. Despite major damage to thirty eight of the District’s forty plus buildings, school resumed on September 29, 2008.

Administrative Success: • Former Superintendent of Schools, Dr. Sandra Mossman, was named the 2007 Region IV Superintendent of the Year and was one of five finalists for the Texas Superintendent of the Year award. • Dr. Mossman retired December 31, 2007 and the Board Trustees named Dr. Greg Smith as its 10th Superintendent effective January 2, 2008. • Dr. Greg Smith was elected Vice Chairman of the Fast Growth Coalition of Public Schools. • Creative web design and dynamic videos earned the Clear Creek Independent School District Office of Public Information five EMMY Awards from the Lone Star Chapter of the National Academy of Television Arts and Sciences. Clear Creek ISD is the only school district in the region to earn the coveted award, and only the second school district in the state of Texas to earn these honors.

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♦ The Budget Process

The Planning Cycle The budget process covers the entire financial cycle starting with budget planning and ending with the audited financial statements. The seven steps are:

• Budget Planning November – December 2007 • Budget Preparation January – August 2008 • Board of Trustee Budget Review March – August 2008 • Budget Adoption August 2008 • Tax Rate Adoption September 2008 • Budget Amendments Monthly 2008-2009 • Audited Financial Statements January 2009

Budget Planning The District budget process is instructionally driven. District budget planning begins with the senior administrative staff and the Board of Trustees holding goal-setting sessions in December. The Budget Calendar is also reviewed with the Board of Trustees. In addition, campuses prepare the required annual Campus Improvement Plans which is integrated into the budget process.

Budget Preparation Budget Preparation begins with a training session with principals and program managers. At that time the Budget Manual and budget worksheets are distributed. The District utilizes the Pentamation software to allow for on-line budget preparation instead of strictly paper submissions. Therefore, annual software training is provided.

The District uses site-based budgeting to enhance the ability of principals to serve as effective instructional leaders. Site-based budgeting places the principal at the center of the budget preparation process.

The Campus Budget Worksheet reflects the initial campus funding allocations. These allocations address equity issues between campuses. The initial campus funding allocation is based on projected enrollment. These funds are allocated to campus programs by the Principal and Campus Improvement Council per the Campus Improvement Plan. The allocation is adjusted in January based on actual enrollment and staff on hand at the end of the first six weeks.

After the completed campus and program budget packages have been returned, the Superintendent’s Budget Committee reviews them in detail with the principal or program manager. The review focuses on instructional needs and includes discussions on the reallocation of existing funds as well as any additional funding requests from the campus.

Board of Trustee Budget Review The Board of Trustees regularly receives budget updates that include revisions to the long range financial forecast, the long range staffing plan, the preliminary budget, the compensation & salary plan, and the capital projects/capital improvement plan. Since Clear Creek ISD is a growing district, staff asks the Board to approve a number of additional teaching units (fifty or more) at this time to accommodate growth. If funds are available, the compensation & salary plan for teachers is adopted at the May Board of Trustees meeting. Adopting the plan this early in the budget process provides Clear Creek ISD with a competitive advantage in recruiting new teachers and retaining existing staff. The compensation & salary plan for support staff is generally adopted in July. 4 FY 2008 – 2009 Budget Detailed Budget Analysis

Budget Adoption Once the District receives preliminary property value information from the appraisal districts, the Board is asked to approve the budget. The required legal notice for the FY 2008 – 2009 Budget was published on August 14, 2008. The Board of Trustees held the public hearing and adopted the budget on August 25, 2008.

Tax Rate Adoption Historically, the Galveston Central Appraisal District (CAD) certified all District property. This was true even though a high percentage of district property was located in Harris County. Recent legislation ended this process in 2008 and now appraisal districts cannot cross county lines to appraise property. As a result, the District did not receive its final certified values from the Harris County CAD until the first week of September. In years past, our property values were certified in July by the Galveston CAD. After receiving its certified property value rolls, the Clear Creek ISD Tax Office calculates the effective and rollback tax rate in early August. The required legal notice of the District’s effective and roll-back tax rates was published on August 14, 2008. The Board of Trustees held the public hearing and adopted the tax rate on September 22, 2008.

Budget Amendments Initial campus budget allocations are based on projected enrollment and are modified after the October Public Education Information Management System (PEIMS) snapshot. Budget amendments, if necessary, are taken to the Board monthly for consideration and approval.

The Final Amended Budget for the Year Ending August 31, 2008, was submitted at the August 25, 2008, Board meeting. It reflects all amendments previously approved by the Board of Trustees plus any final amendments. The Final Amended Budget for the Year Ending August 31, 2008, will be used by the District’s external auditors in compiling the annual financial statements.

Capital Projects Budget Process Clear Creek Independent School District is meeting the challenge of a fast growth school district by proactively analyzing facility needs and placing bond issues for taxpayer approval.

A $183 million bond election was held on May 12, 2007. Voters approved this bond proposition by the largest margin in Clear Creek’s long history. Over 72% of our voters were in favor of the projects included in the bond proposition. This bond program included funding for new schools, capital additions, roofs, and school buses. The District subsequently sold $37.1 million in July 2007 and $80 million in April 2008 so work could begin on time-sensitive capital projects. These funds are being used to build the State’s first “Educational Village” which includes an elementary, intermediate and high school campus with shared facilities. This one-of-a-kind educational facility will house over 4,500 students in a single location. The bond program also includes an additional 900 student elementary campus. All of these facilities are located in the District’s fast-growing League City area. Remaining bonds will be sold in the spring of 2009 and 2010 to complete all bond program projects.

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replacement appropriation budget ($4 million) to the fund the in the FY 2006 and FY 2007 budgets. By taking a proactive approach to capital replacement, future bond issues will include fewer major maintenance needs. The operating impact of the capital projects is integrated annually into the budget and is highlighted in the Informational Section of this document within our financial forecasts.

Fund Balance occurs when revenues exceed expenses in a given year. In fund accounting, this excess carries over to the next fiscal year and is available for any lawful purpose. By policy, Clear Creek’s goal is to maintain an undesignated fund balance equal to a minimum of two months operating expenses. The District currently meets this goal.

♦ Budget Issues

The Clear Creek Independent School District (CCISD), situated just south of Houston, lies within one of the fastest growing regions in Texas. This year, the District is expected to grow by more than 1,000 students, or about 3%. Student growth is expected to remain at this level for the foreseeable future.

Rapid enrollment growth continues to be a major budgetary concern. In order to manage this growth, the district has developed long range facility plans through the Long Range Facility Master Plan Committee. This group of sixty local citizens and District staff reviewed enrollment trends and facility needs for the next 15 years. They were tasked with developing a facility master plan that meets the growth needs of the District and predicts the cost and tax rate impact of future growth. Their work has provided the framework for bond programs through the year 2020. In addition, the District has used this work to develop long range major maintenance programs to meet the needs of aging facilities.

The District has also developed a five year staffing plan to proactively manage enrollment growth. This plan uses the long range facility plan as a template to estimate the need for staff at new campuses. Since the cost to fully staff a new 2500 student high school in the first year of operation is over $3.5 million, it is essential to include those costs in long range budget projections. This plan provides the Board with vital expenditure forecasts in support of student growth.

Less than two weeks after the FY 2009 budget was approved, southeast Texas and Clear Creek ISD experienced a major hurricane. Hurricane Ike came ashore on the east end of Galveston Island with its eye passing directly over the District’s administration building. The entire district had sustained 100 mile per hour winds for six hours as the storm made its way into east Texas. Damage was substantial and impacted virtually all of the District’s forty plus facilities. 6 FY 2008 – 2009 Budget Detailed Budget Analysis

Initial estimates point to $18 million in damage district wide. Insurance deductibles are at 2% per location and in a worst case scenario could result in a financial impact of over $8 million. The District is working closely with its insurance carriers and the Federal Emergency Management Agency (FEMA) to mitigate the cost of this disaster. We expect FEMA to cover 75% of the costs that were not reimbursed by the District’s windstorm and flood policies. However the process is usually a long one when dealing with a federal program so we do not expect immediate financial support. If FEMA reimburses the District as expected, it would leave the District with a final damage responsibility of just over $2 million.

Clear Creek has been able to fund this disaster through its strong financial position and the District’s proactive response to the potential of a devastating storm. In 2005 the Board saw the need to provide funding to cover the impact of a major hurricane. The District developed a disaster recovery designated reserve and capitalized it with $2.5 million. In addition, the District built up a healthy fund balance over the last five years that would provide the cash needed to fund this type of emergency. Board policy sets a goal of two months operating expenses to be held in undesignated unreserved fund balance to meet unexpected contingencies. This fund balance has proved invaluable to our building repair and reconstruction activities after the storm.

Past hurricane disasters on the Gulf Coast of Texas and Louisiana (Hurricanes Katrina and Rita, 2005) combined to create tremendous increases in property and casualty insurance premiums. As a result, most coastal districts experienced drastic increases in insurance premiums with a corresponding drop in total insured value. Clear Creek experienced a 300% increase in premiums. At the same time, total insured values dropped from $500 million to $50 million. This immediate surge in premiums subsided somewhat over the next two years; however, the District’s premiums are still twice what they were in 2005 while total insured values are still less than 10% of actual building values.

Policies renewed in May 2008 and premiums are locked for the next eight months. However, we expect to see another substantial increase in premiums when we renew our insurance in May 2009. Another 300% jump is not out of the question.

In order to mitigate fluctuations in the property and casualty insurance market, the District developed an insurance reserve fund in 2006 and capitalized it with $4.5 million. This fund has been tapped over the last two years to help offset the sharp increase in premiums. It is anticipated that this fund will be tapped again to meet the projected premium increases that are sure to come in May 2009.

Utility and fuel costs have also been a major cost driver the last several years. These costs have more than doubled from last year’s budget and the trend is even higher in the future. Since the State of Texas did not provide additional funding to cover these rising costs, the district was forced to fit them in its budget.

Funding is a critical issue to all school districts in Texas. Clear Creek was at the maximum Maintenance & Operations (M&O) tax rate for the six years. This was not an uncommon situation in the State of Texas. To remedy the situation, a Special Legislative Session in May 2006 produced a new state-wide business tax that included a 50 cent reduction in local school district property taxes over a two year period. Districts were also given the option to increase their local tax rate by four cents without voter approval. Increases above the authorized four cents require voter approval.

As a result of two years of tax rate reductions, the District’s local M&O tax rate now stands at $1.04 per $100 valuation. Due to rising costs and the need to hire more teachers to manage enrollment growth, the District finally accessed the optional four cents this year. Up to this point, Clear Creek ISD was one of only a handful of school districts in the state of Texas who had not accessed all or part of the optional four pennies. Over 98% of Texas’ 1,037 school districts accessed the optional four cents in 2006 and 2007. Clear Creek’s excellent financial status allowed Trustees to hold the line on tax rate increases until this year. 7 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ FY 2009 Budget Goals, Assumptions, Priorities, and Risks

The approval of a district-wide strategic plan facilitated the development of Board budget goals for the FY 2009 budget. This year’s budget season began when the Board met in December 2007 to discuss budget priorities for the coming year. These priorities were used to build the District’s 2009 budget. Board approved goals, assumptions and priorities are as follows:

¾ Budget Goal To adopt a budget that is both consistent with CCISD’s mission and strategic plan and with its aspirations to become nationally recognized for excellence in academics and school administration.

¾ Budget Assumptions CCISD’s 2009 Budget will:

• Be a balanced budget with no deficits; • Retain the 5% local homestead exemption; • At a minimum, comply with all federal and state mandates; • Meet CCISD’s capacity and growth needs; • Manage the District’s resources efficiently and effectively; • Maintain an adequate fund balance as defined in board policy; and, • Maintain designated disaster recovery & capital replacement reserves.

¾ Budget Priorities • Provide adequate and targeted levels of funding for improved student achievement including identified priorities within the academic build out plan; • Maintain competitive salaries, stipends and benefits for all employees; • Fund requirements of the CCISD Strategic Plan; • Develop alternative revenue streams; • Provide adequate funding for safe and secure schools; and, • Maintain staffing plans to address adequate/optimal staffing at all levels and for all programs.

¾ Budget Risks • Legislative changes to the school funding system; • Increased spending due to unfunded state or federal mandates; and, • Changes in local tax base.

The District’s approach to coping with explosive student growth, a restricted funding environment, and increasing academic standards has been to ensure that the budget process is driven by the District’s Strategic Plan and budget priorities.

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♦ Recent Legislative Changes to the School Funding System

In response to many years of litigation, the Texas Legislature (the Legislature) enacted House Bill 1 (HB 1), which made substantive changes in the way the Finance System is funded. The Legislature also passed legislation which, among other things, established a special fund in the Texas state treasury to be used to collect new tax revenues that are dedicated under certain conditions for appropriation by the Legislature to reduce M&O Tax rates, broadened the State business franchise tax, modified the procedures for assessing the State motor vehicle sales and use tax and increased the State tax on tobacco products. HB 1 and other described legislation are collectively referred to as the Reform Legislation. The Reform Legislation became effective with the 2006-2007 fiscal year of each district.

♦ Accounting for School District Operations

School districts in Texas manage their multi-million dollar budgets through funds that have been designated to manage school operations. These funds are separated into distinct categories. The major category of funds is called Governmental Funds. These funds represent the core educational activities of the district.

Districts also collect costs in a series of proprietary funds that capture such diverse items as the National School Lunch Program, athletic concessions, and the district’s self funded employee insurance programs.

One unique feature of school funding is that the Board of Trustees is only obligated to approve budgets for three sets of funds. Budgets for the General Fund, Debt Service Funds, and Food Service Fund (an Enterprise Fund) must be included in the official district budget and approved by the Board. These budgets are approved on a fiscal year basis from September 1st through August 31st.

Governmental Funds The following presents a comparison of revenues and expenditures for all Governmental Funds. Governmental Funds include the General, Special Revenue, Debt Service, and Capital Projects Funds. Most of the District’s basic services are included in Governmental Funds.

The General Fund is the engine that drives all District activity. This fund pays teacher salaries, utilities, maintenance and other routine District activities. The Debt Service Fund is established to account for payment of principal and interest on long-term general obligation debt and other long-term debts for which a tax has been dedicated. Special revenue funds account for resources restricted to, or designated for, specific purposes by the District or a grantor in a special revenue fund. Finally, Capital Project Funds are used to build and maintain facilities and purchases buses.

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Governmental Funds Revenues The General Fund is the largest single governmental fund and comprises 80% of total revenue. Revenues in this fund class are mainly derived from the general taxing authority of the District. However, a large share of revenue is also derived from State funding under the reform legislation of 2006. The State’s funding as a percentage of total General Fund revenue is now 42.3%. This is up from a low several years ago of 15%. This is a direct result of the Reform Legislation passed in 2006 which lowered local property taxes and substituted a new business tax to raise the revenue needed to operate schools.

Governmental Fund Revenues by Source FY 2009

Local & Federal Program Intermediate Revenues Sources 3.0% 61.6%

State Program Revenues 35.4%

Total Governmental Fund Revenues

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 General Fund $ 216,408,650 $ 223,180,809 $ 239,673,883 $ 249,300,000 $ 270,144,000 Special Revenue Funds 16,370,138 22,349,997 18,369,723 17,246,092 18,272,775 Debt Service Funds 28,031,685 33,546,944 38,793,335 43,800,000 46,400,000 Capital Projects Funds 3,114,601 5,590,673 4,831,501 3,000,000 2,777,000 Total Revenues $ 263,925,074 $ 284,668,423 $ 301,668,442 $ 313,346,092 $ 337,593,775

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Governmental Funds Expenditures General Fund expenditures dominate Governmental Fund activities as well with almost 60.2% of the total. However, since the District is experiencing rapid enrollment growth, the Capital Projects Funds continues to have a major impact on expenditures. The challenge of large enrollment gains can only be met with new facilities. These facilities are funded through taxpayer authorized bond issues that are managed through the Capital Project Funds. The District anticipates this growth to continue for the next 10 - 15 years.

Governmental Fund Expenditures FY 2009

General Fund 60.2%

Capital Project Funds 25.5%

Debt Service Special Revenue Funds Funds 10.2% 4.1%

Total Governmental Fund Expenditures

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 General Fund $ 198,921,194 $ 204,119,697 $ 220,344,156 $ 249,250,959 $ 270,138,086 Special Revenue Funds 16,372,350 22,474,460 18,595,321 17,246,091 18,272,775 Debt Service Funds 30,105,712 36,157,778 38,578,792 40,900,000 45,800,000 Capital Projects Funds 93,029,707 110,404,636 65,455,829 51,695,9545 114,278,242 Total Revenues $ 338,428,963 $ 373,156,571 $ 342,974,098 $ 359,093,005 $ 448,489,103

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Major Sources of Funds District programs are primarily supported by local real and personal property taxes and state funding. Local taxes are budgeted at $193.0 million which is divided between the General Fund at $147.4 million and the Debt Service Funds at $45.6 million. This is up from last year’s total of $177.4 million due to an increase in the District’s maintenance and operations tax rate of four (4) cents.

State program revenues Governmental Funds Revenue are the next largest Five Year History revenue source at ($1,000's) almost $112 million. This includes $8.8 $223,308 $224,728 $250,000 $211,931 million from the $195,815 $207,976 $200,000 Available School Fund, $91.3 million from the $150,000 $110,866 $119,653 $66,561 Foundation School $42,797 $45,629 $100,000 Program, and $14.2 $9,351 $9,965 $50,000 $9,197 $14,873 $14,360 million for Teacher $- Retirement / TRS Care- FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 On-Behalf Payments.

Local & Intermediate Sources State Program Revenues Federal Program Revenues The available school fund consists of the distributions from the total return on all investment assets of the permanent school fund, the taxes authorized by this constitution or general law to be part of the available school fund, and appropriations made to the available school fund by the legislature. The On-Behalf revenues equal state payments of matching teacher retirement paid for active members of the school district in accordance with GASB Statement No. 24.

Major Uses of Funds The Board places a high priority on funding direct classroom instruction. Clear Creek spends 68.4% of its General Fund budget on Instruction and Related Services. These dollars go directly into the classroom and pay for teacher salaries and classroom/campus supplies. Since almost 84% of district spending is for personnel, a large part Governmental Funds Expenditures of this budget goes Five Year History toward personnel and ($1,000's) benefits associated $200,000 with our classroom $180,000 $160,000 teachers. The second $140,000 largest expenditure $120,000 class in Governmental $100,000 Funds is capital outlay. $80,000 $60,000 Since it is a fast $40,000 growth district, Clear $20,000 Creek spends more $- than twenty five FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 percent (25.5%) of its Instruction & Related Svcs Capital Outlay Debt Services Student Support Services Maintenance & Operations Instructional & School Leadership governmental fund Administrative Support Svcs Technology & Security Svcs Intergovernmental Charges monies in the Capital Projects Funds. These funds are where the District accounts for major construction activities. Clear Creek is currently completing work under a $264 million bond issue authorized in February of 2004. New construction activity is being handled under a $183 million bond issue authorized in May 2007.

12 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Analysis of Governmental Fund Budgets

General Fund Revenue in this fund is estimated at $270,144,000 while expenditures are budgeted at $270,138,086. The 2008–2009 General Fund budget is balanced and includes a very small increase in fund balance ($5,914).

This fund is established General Fund Revenues to account for Five Year History resources financing the ($1,000's) fundamental operations $545 FY 2009 $114,233 of the District. All $155,366 $542 FY 2008 $106,295 revenues and $142,463 expenditures that are $660 FY 2007 $62,307 not required to be $176,707 $1,172 FY 2006 $40,830 accounted for in other $181,179 funds are included $618 FY 2005 $37,951 here. Since this is a $177,840 budgeted fund, any $0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 fund balances are considered resources Local & Intermediate Sources State Program Revenues Federal Program Revenues available for current operations. Fund balances may be appropriated by the Board of Trustees to implement its responsibilities.

The education of students is labor intensive. This is reflected in the large portion of the District's budget for payroll costs. The composition of the District's workforce is determined by the staffing policies and guidelines of the Board of Trustees on the basis of projected student enrollment and curriculum requirements. For the 2008–2009 fiscal year, payroll costs are budgeted at $226,496,036 (83.8%) percent of the General Fund current operating expenditures.

General Fund Expenditures by Object FY 2009

Capital Outlay 0.4% Payroll Costs 83.8% Other Operating 7.1%

Supplies & Materials 4.4% Contracted Services 4.2%

13 FY 2008 – 2009 Budget Detailed Budget Analysis

Fund Balance Over the last eight years the Board of Trustees has placed a very high priority on building the District’s fund balance to an acceptable level. The Board set fund balance objectives in policy CE (Local) to reflect the need to keep undesignated fund balance at a minimum of two months of operating expenses. As a result of this focus, the District now has $43.8 million in undesignated, unreserved fund balance. This will ensure the District has adequate undesignated reserves to meet contingencies.

General Fund - Fund Balance Five Year History ($1,000's)

$50,000 $43,762 $43,811 $43,816 $40,645 $41,654 $40,000

$30,000

$20,000 $8,353 $9,619 $9,730 $9,730 $9,730 $10,000

$0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Undesignated Fund Balance Designated Fund Balance

Special Revenue Funds These funds are budgeted at $18,272,775. The District accounts for resources restricted to, or designated for, specific purposes by the District or a grantor in a special revenue fund. Most Federal and some State financial assistance are accounted for in a special revenue fund. In some cases, unused balances must be returned to the grantor at the close of the specified project periods. The Board of Trustees is not required to approve special revenue funds.

Special revenue funds include several large Special Revenue Funds - Revenues federal programs. Title Five Year History I funds cover the ($1,000's) $16,000 Elementary and $13,700 Secondary Education $14,000 $12,000 Act (ESEA) and provide $9,420 $10,000 $8,579 $9,099 funds for the District’s $7,477 $8,000 at risk and $5,575 $5,420 $6,000 $4,585 disadvantaged children. $3,992 $4,254 The Individuals with $4,000 $4,686 Disabilities in Education $2,000 $3,799 $4,396 $4,194 $3,433 Act (IDEA) provides $- FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 funds for the District’s special education Local & Intermediate Sources State Program Revenues Federal Program Revenues programs.

Other large programs captured in special revenue funds are the High School Allotment from the State of Texas ($2.9 million), Deaf Education Cooperative ($2.3 million) and the Technology Allotment from the State ($1.2 million). Expenditures in these funds are primarily for instruction and instruction related services. Seventy five percent (75.0%) of total spending is in this area. Student support services are the next largest expenditure in this fund class with just over eighteen percent (18.4%).

14 FY 2008 – 2009 Budget Detailed Budget Analysis

Debt Service Funds These funds are established to account for payment of principal and interest on long-term general obligation debt and other long-term debts for which a tax has been dedicated. They are budgeted at $46,400,000. The graph to the right highlights the steady growth in Debt Service Fund revenue over the last five years. Growth in this fund is due to the passage of several large bond propositions over the last four years.

In February 2004 voters Debt Service Fund Revenues passed a $264 million ($1,000's) bond issue. Funds were earmarked for new FY 2009 $0 $46,400 schools, campus FY 2008 $0 additions, capital $43,800 FY 2007 $0 improvements, land $38,793 acquisitions, student FY 2006 $808 computers and $32,739 FY 2005 $854 technology. This $27,178 building program is $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 nearing completion. A $183 million bond Local & Intermediate Sources State Program Revenues Federal Program Revenues election was held in May 2007. Over 72% of voters were in favor of the projects included in the bond proposition. It included funding for new schools, capital additions, roofs, and school buses. The District has sold $117.3 million through April 2008. Current plans are to issue the remaining authorized funds in April 2009 ($52.8 million) and April 2010 ($13.1 million).

The Debt Service Fund fund balance is adequate and in line with the District’s goal to have at least ten percent (10%) of the annual debt service payment in undesignated fund balance.

Capital Projects Funds The District is experiencing tremendous enrollment growth that is creating the need for additional classroom space. Bond issues are essential to managing this growth. Taxpayers have approved almost $450 million in bond programs over the last four years.

In addition to normal enrollment growth, the District has a continuing need to fund capital projects and/or capital replacements that were not included in a bond program. In order to meet this need the District set aside and transferred $45 million from the General Fund to a special capital projects fund over the last several years. This fund is helping the District meet capital needs without adding additional funding requests for major maintenance items in future bond programs.

Below is a listing of recent bond programs approved by voters. A detailed listing of recently completed and in-progress capital projects is included in the Financial Section of this document.

15 FY 2008 – 2009 Budget Detailed Budget Analysis

Capital Projects – 2004 Bond Issue

Description Projects Funding New Schools New High School (1) $118,899,000 Clear Creek High School Re-build New Elementary Schools (2)

Campus Additions High Schools - Band Halls, Dance Studios 27,565,000 Intermediate Schools – Band Halls, Choir Rooms Elementary Schools – Gymnasiums & Classrooms New Agriculture Facility

Capital Improvements Energy Systems, Roofs, Security Surveillance, School Bus 63,523,000 Replacement, Centralized Phone System, Network Infrastructure & Cabling, Future Site Infrastructure

Land Acquisition Future High School Site, Intermediate Sites (2), and 29,064,000 Elementary Sites (5), Future Expansion Site

Student Computers, Technology & Classroom Technology, Student Computers and Projection 24,949,000 Financing Devices, Science/Math/Library Peripherals, and Distance Learning

Total $264,000,000

Capital Projects – 2007 Bond Issue

Description Projects Funding New Schools New High School (1) $154,167,000 New Intermediate School (1) New Elementary Schools (2)

Campus Conversions Convert 9th Grade Centers to Intermediate Schools (2) 7,629,000

Capital Improvements & Roofs, Major Mechanical Systems, Security Systems, 21,329,000 Replacements School Bus Replacement

Total $183,125,000

16 FY 2008 – 2009 Budget Detailed Budget Analysis

Proprietary Funds Proprietary funds include those funds for which the District charges customers a fee. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. Clear Creek’s proprietary funds are further broken down into Enterprise Funds and Internal Service Funds.

Enterprise Funds Enterprise Funds are used to report business-type activities. The District has two business-type activities within this fund class; the National Breakfast and Lunch Program and athletic concessions. The Child Nutrition Fund budget must be approved by the Board of Trustees. Over $13.1 million in revenue is generated in these funds. Enterprise funds grow gradually as student enrollment increases. As we enroll more students and as our number of at-risk students increases, the Child Nutrition Fund budget will also increase.

Internal Service Funds Internal Service Funds include activities in the District’s employee self-funded insurance programs. This includes the Health Insurance Fund, Worker’s Compensation Fund, Disability Insurance Fund and a new Property and Casualty Insurance Fund created to help manage fluctuating costs in property and casualty insurance premiums. Over $28.4 million in revenue is generated by all of these funds. Growth in the Internal Service Funds is due to increases in our self-funded employee health fund and the addition of the property and casualty insurance fund. Inflation naturally takes a toll on school district operations; however, inflation in medical costs far exceeds normal inflation. Experts suggest that this inflation could exceed 15% each year. This trend is expected to continue for the foreseeable future. The property and casualty insurance fund will help the district manage the sometimes wild swings in insurance premiums that result from damaging major hurricanes along the Gulf Coast.

Total Proprietary Fund Revenues

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Enterprise Fund $ 9,792,234 $ 10,326,667 $10,636,334 $12,130,000 $13,160,000 Internal Service Funds 17,269,704 $ 18,433,918 $25,907,004 $20,165,000 $28,410,000

Total $27,061,938 $ 28,760,585 $36,543,338 $32,295,000 $41,570,000

Total Proprietary Fund Expenditures

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Enterprise Fund $ 9,510,290 $ 9,723,000 $10,060,181 $11,879,000 $12,907,000 Internal Service Funds 16,280,786 $ 18,050,713 $25,061,086 $20,165,000 $29,110,000

Total $25,791,076 $ 27,773,713 $35,121,267 $32,044,000 $42,017,000

17 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Analysis of Local Taxes

Assessed Values Recent legislation created a change in the appraisal process for districts with property in more than one county. Since Clear Creek ISD has property in both Harris and Galveston counties our appraisal and budget process was impacted.

In prior years, districts with property in more than one county could chose one appraisal district to appraise all properties. Now these school districts are required to have split appraisals. Therefore, the Galveston County Central Appraisal District (GCAD) appraises property in Galveston County while the Harris County Central Appraisal District (HCAD) appraised property in Harris County for Clear Creek ISD.

While this legislation is logical, it has impacted our tax rate approval timeline and cash flow. The GCAD always certifies values on or before the Assessed Property Value Growth state mandated deadline Five Year History th of July 25 . The HCAD, ($1,000's) however, cannot meet this deadline and does $17,500,000 not provide a certified tax roll until early $15,000,000 September. $13,958,777

$12,761,283

When the District used $12,500,000 $11,832,947 the GCAD to appraise all $11,113,895 properties it was able to $10,513,693 approve a tax rate in $10,000,000 August and mail tax bills by early October. Due to delays from the HCAD, $7,500,000 2004 2005 2006 2007 2008 we cannot approve a tax rate until late Calendar Year September. This means tax bills cannot be mailed until late November or early December.

All properties are assessed at 100% of market value as of January 1, 2008. The Certified and Under Protest Appraisal Totals were used for the September 22nd tax rate adoption. The District's fiscal year runs from September 1st to August 31st. Therefore, our projected 2008 Certified and Under Protest Appraisal Totals, which were $13,958,777, were used for the August 25th budget adoption. This equates to an average growth rate in assessed values of more than 8.2% per year over the last four years. Values grew by over 9.4% just last year.

The Texas Comptroller of Public Accounts annually certifies the final property values on or before July 1st of the following year. The Commissioner of Education uses the final values in the process of allocating state funds to school districts.

18 FY 2008 – 2009 Budget Detailed Budget Analysis

Levy on the Average Residence Clear Creek’s tax base is heavily weighted towards residential property. Almost 55% of our total general fund is derived from local property taxes. Homeowners fund a majority of the costs of operating our schools.

Clear Creek’s levy on its Levy on Average Residence average residence increased Five Year History this year. This is due to an increase in local property FY 2009 $2,093 values as well as a four cent maintenance and operations FY 2008 $1,875

tax rate increase approved for FY 2007 $2,231 the 2008 tax year. The chart to the right highlights this FY 2006 $2,335 movement over the last five FY 2005 years. $2,183 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 The local economy is still pushing property values higher Total Tax Levy as evidenced by the assessed value increase over the last five years highlighted above. The average taxable value of a home in the Clear Creek Independent School District currently stands at $153,928.

Distribution of Tax Base Clear Creek is literally a district of roof-tops. Our community is primarily residential in nature. Almost $12.1 billion in value is residential in nature (68.1% of total market value). This is up from $9.4 billion in 2007 and represents a jump of over seven percentage points in one year. The next highest distribution is in commercial and industrial property at over $2.9 billion (16.7%). This property value is also higher than 2007 but the increase is much less significant than that residential values. The District also has a large portion of its property in the form of acreage and platted lots/tracts which are available for development. This indicates that there is an abundance of land for future development. This raw land will eventually become land for new homes. As a result, we believe that the distribution of our tax base will continue to be heavily weighted in residential property.

Top Twenty Taxpayers Clear Creek’s top taxpayers are heavily weighted towards industrial and commercial operations. It should also be noted that even with a heavy weight of industrial taxpayers in our top twenty, the top taxpayer, Coral Energy Resources, accounts for only 2.70% of our total tax base. Our next largest taxpayer is Baybrook Mall LLP which is a very large regional shopping mall. They account for 1.2% of the tax base. Our twentieth largest taxpayer is a chemical plan that makes up only 0.22% of our total tax base. This is evidence of Clear Creek’s dependence on residential taxpayers. See Informational section, page 165 for detailed list.

19 FY 2008 – 2009 Budget Detailed Budget Analysis

Property Tax Rates The Board of Trustees adopted tax rates on September 22nd after giving appropriate public notice. School district tax rates consist of a Maintenance & Operations tax rate and an Interest & Sinking tax rate.

Maintenance and Operations tax rate (M&O): A local school district tax rate that raises revenue to be used to operate and maintain the district's schools. This rate is at $1.04 per $100 valuation.

Interest and Sinking Tax (I&S): A tax levied and money used by school districts to pay for voter approved bonded indebtedness, usually construction of facilities or other capital needs. This rate is at $0.32 per $100 valuation.

Tax Rate Analysis The total tax rate has decreased by thirty nine cents ($0.39) over the $1.800 $1.700 last five years. The Maintenance $1.600 and Operations tax rate decreased $1.500 $1.400 by forty six cents ($0.46) over this

e $1.300 period primarily due to the fifty $1.200 $1.100 cent rate reduction included in the

Tax Rat $1.000 reform legislation of 2006. $0.900 $0.800 $0.700 The Interest and Sinking Fund tax $0.600 $0.500 rate increased by seven and a half FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 cents ($0.075) over the last five Fiscal Year years from $0.245 to $0.32. This

Maintenance & Operations Interest & Sinking increase was planned due to the sale of $381.1 million in new bonds approved by voters in 2004 ($264 million), and in 2007 ($183.5 million). The District has sold all of the 2004 authorization and $117.1 of the 2007 authorization.

Property Tax Collections Clear Creek has seen property tax collections decline over the last two Property Tax Collections years. This is due to the reform Five Year History legislation that reduced the tax rate ($1,000's) by fifty cents over the same period. Prior to this legislation, tax collections $200,000 $175,609 $165,200 were increasing. This was due to an $175,000 $163,200 $144,220 expanding economy that led to a $150,000 $134,200 construction boom, escalating $125,000 property values, and an abundance of $100,000 raw land that has been tapped for $75,000 $37,354 $43,150 $43,000 residential and commercial $50,000 $26,775 $32,162 $25,000 development. As a result, property $0 tax collections grew in direct response FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 to economic growth. Maintenance & Operations Interest & Sinking Fiscal Year While the national economic outlook points to much slower growth, we believe we believe economic growth in our District will continue well into the future.

20 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Student Enrollment Projections

Enrollment projections were provided through a contract with MetroStudy, Inc. MetroStudy integrates school district information with its proprietary new home census information and specific neighborhood forecasts to create specific enrollment projections by attendance zone for the District.

MetroStudy was retained in early 2004 to provide Actual/Projected enrollment projections to the Enrollment Growth Long Range Facility Master Plan Committee. They made 50,000 an initial enrollment estimate 45,000 in July 2004. These estimates 40,000 35,000 are reviewed annually to 30,000 determine if the estimates are 25,000 still valid. Annual reviews 20,000 15,000 allow the District to take a 10,000 proactive stance with regard to 5,000 new school locations. As a - result, school sites can be 2006 2007 2008 2009 2010 2011 2012 2013 2014 established in advance of the expected influx of students. Elementary Intermediate High School Total This early warning allows the District to negotiate land purchases while pricing is still affordable.

The District is rapidly growing and has large areas of undeveloped land. Demographic changes will be a key data source for the District in the future. Current projections show student enrollment for the FY 2009 school year to be 37,044. This number will grow to 44,371 over the next six years.

♦ District-Wide Staffing

The District has experienced tremendous enrollment growth over the last five years. In order to meet the challenges of a fast-growth school district, our teaching and support staff has grown as well. In the last four years, the District has added 763 new positions to meet growth. Teachers make up the vast majority of these new positions with the District adding 432 new positions.

The second largest growth area with over 139 new positions has been Auxiliary Support. This group consists of custodians, maintenance technicians, food service employees, and bus drivers. The District has opened four new schools in the last three years which has had a significant impact on our Auxiliary Support departments.

As Clear Creek’s enrollment continues to grow, we anticipate teaching and support staff to increase in order to meet the needs of our District. This trend will continue for at least the next five to ten years.

21 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Employee Resource Allocations

CLEAR CREEK INDEPENDENT SCHOOL DISTRICT FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITION

Description 2004 2005 2006 2007 2008

Administrative / Professional General Administration 5 5 6 7 7 Business / Finance 9 10 10 9 9 Human Resources 3 3 3 3 4 Instruction / Curriculum 16 20 19 19 23 Technology / Information Systems 8 7 6 6 6 Maintenance and Operations 4 4 5 4 4 Principals 35 37 37 37 37 Assistant Principals 46 51 54 54 57 Librarians 38 40 42 43 43 Counselors 45 66 67 76 86 Nurses 35 37 38 40 40 Diagnosticians 25 24 31 30 30 Licensed Specialist in School Psychology 2 3 3 4 4 Speech-Language Pathologists 30 31 25 23 23 301 338 346 355 373

Teachers 2,099 2,203 2,329 2,483 2,577

Technology 30 33 34 33 36

Campus Clerical / Office / Classroom Aides Attendence Clerk 35 34 40 42 44 Secretary - Principal 37 37 36 37 37 Bookkeeper 3 3 3 4 4 Registrar 3 3 3 5 6 Classroom Teacher Aide 61 66 67 64 70 Special Education Aide 154 180 187 204 214 Library Aide 36 36 38 37 37 Other 20 21 23 24 27 349 380 397 417 439

Central Office Clerical / Office Secretary 32 30 29 29 30 Accounts Payable Clerks 4 4 4 4 4 Payroll Clerks 5 6 6 6 6 Purchasing Clerk 1 1 2 2 2 Tax Office Clerk 4 4 4 4 4 Receptionist 1 1 1 1 1 PEIMS Data Specialist 1 1 1 1 1 Other 2 2 2 2 2 50 49 49 49 50

Auxiliary Transportation 174 182 196 212 221 Food Service 245 250 235 235 250 Maintenance - Custodial 223 244 246 250 250 Maintenance - Other 56 53 56 51 57 Security 3 3 4 7 7 701 732 737 755 785

Other Part-time 330 206 235 273 273

Total 3,860 3,941 4,127 4,365 4,533 22 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Educational Performance Measures

Texas Assessment of Knowledge and Skills (TAKS) The Texas Assessment of Knowledge and Skills (TAKS) measure the statewide curriculum of specific subjects at specific grade levels. TAKS includes a broad assessment of the Texas Essential Knowledge and Skills (TEKS), which is the statewide curriculum, and is a more rigorous assessment than previous testing programs.

Clear Creek has the distinction of being the largest Recognized school district in the State of Texas. The District is also the only large school district in the State of Texas, a district with more than 25,000 students, to be named a Recognized school district for eleven of the last twelve years.

Texas Accountability System Description 2003 - 2004 2004 - 2005 2005 – 2006 2006 - 2007 2007- 2008

Exemplary 6 5 11 15 18

Recognized 18 21 17 13 14

Acceptable 9 8 7 8 6

District Rating Recognized Acceptable Recognized Recognized Recognized

Academic Performance and Per Pupil Spending Clear Creek ISD is committed to providing efficient and effective services to its students. This does not mean we spend more than other districts, rather it means we ensure that each dollar spent is focused on student achievement. Consequently, when we analyze Clear Creek’s per pupil spending to our peers across the state, we find that we do not rank at the top in that category. Yet we can still lay claim to being the highest performing large (enrollment in excess of 20,000) school district in the State of Texas.

There has been a nation-wide push to force districts to spend an arbitrary amount of its funds on direct classroom instruction. The argument is that if we spend more of our funding on direct classroom instruction, then student performance will improve. The percentage that is most often used as a benchmark is 65% of the total budget. This movement is certainly gaining strength in Texas.

Over the last several legislative sessions, our Texas legislators have made a major push to implement the 65% rule. Their goal has been to require districts to spend at least 65% of their total budget on direct classroom instruction. While the goal of increased classroom spending is one that all districts strive for, it is equally true that there is no direct research that links higher levels of spending with student success.

The chart on the next page highlights this fact. Our General Fund per pupil spending in each major expense category is benchmarked against our peer districts across the State of Texas. We compare ourselves to the top thirty school districts across the state. As you will note, we rank 13th in overall per pupil spending in our peer group. In addition, we are 17th in Instruction and Related spending – often used as the benchmark for direct classroom spending, and 19th in Instructional and School Leadership which is campus and district based instructional support. You will also note that many Acceptable districts spend much more than Clear Creek ISD on a per pupil basis.

These results support the idea that more is not better when it comes to per pupil spending. Student performance is a balance between direct classroom spending and having the very best teacher in each classroom and administrator on each campus.

23 FY 2008 – 2009 Budget Detailed Budget Analysis

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ er er t n I Charges ¹Charges Total Governmental Governmental $ $ 7,631 $ $ 8,365 $ $ 7,257 $ $ 7,775 $ $ 7,301 $ $ 6,492 $ $ 5,698 $ $ 6,939 $ $ 8,793 $ $ 7,230 $ $ 6,180 $ $ 7,141 $ $ 7,258 $ $ 5,698 $ $ 7,011 $ $ 7,519 $ $ 8,388 $ $ 7,524 $ $ 7,352 $ $ 6,794 $ $ 8,534 $ $ 7,123 $ $ 7,265 $ $ 8,264 $ $ 6,633 $ $ 7,240 $ $ 7,986 $ $ 7,396 $ $ 7,257 $ $ 7,919 $ $ 6,495 $ $ 7,145 $ $ 8,793 $ $ 10 $ $ 114 $ $ 53 $ $ 386 $ $ 39 $ $ 29 $ $ 58 $ $ 548 $ $ 42 $ $ 2 $ $ 35 $ $ 101 $ $ 2 $ $ 33 $ $ 7 $ $ 116 $ $ 40 $ $ 80 $ $ 92 $ $ 49 $ $ 30 $ $ 9 $ $ 62 $ $ 17 $ $ 63 $ $ 83 $ $ 41 $ $ 41 $ $ 3 $ $ 29 $ $ 548 $ $ 199 $ $ 62 $ $ 13 $ $ 10 $ $ 0 $ $ - $ $ - $ $ 20 $ $ - $ $ 26 $ $ 14 $ $ - $ $ 25 $ $ 12 $ $ - $ $ - $ $ 1 $ $ - $ $ - $ $ 5 $ $ 1 $ $ 8 $ $ 15 $ $ - $ $ - $ $ 26 $ $ 1 $ $ 3 $ $ 1 $ $ - $ $ 8 $ $ 3 $ $ 3 $ $ - $ $ 1 Services Debt Services Capital Outlay Community Community $ $ - $ $ - $ $ 18 $ $ - $ $ - $ $ - $ $ - $ $ 725 $ $ - $ $ - $ $ 24 $ $ - $ $ - $ $ - $ $ 2 $ $ - $ $ 1 $ $ 27 $ $ 8 $ $ 725 $ $ - $ $ - $ $ 13 $ $ - $ $ - $ $ - $ $ 26 $ $ - $ $ - $ $ - $ $ - $ $ - $ $ - Services Technology Technology $ $ 10 $ $ 3 $ $ 17 $ $ 4 $ $ 2 $ $ 8 $ $ 7 $ $ 103 $ $ 37 $ $ 30 $ $ 10 $ $ 11 $ $ - $ $ - $ $ 2 $ $ 9 $ $ 7 $ $ 22 $ $ 2 $ $ 57 $ $ 6 $ $ 42 $ $ 71 $ $ 25 $ $ 26 $ $ 103 $ $ 12 $ $ 10 $ $ 80 $ $ 3 $ $ 26 $ $ 19 $ $ 9 Security & Monitoring $ $ 86 $ $ 114 $ $ 211 $ $ 132 $ $ 93 $ $ 73 $ $ 114 $ $ 211 $ $ 66 $ $ 67 $ $ 90 $ $ 140 $ $ 48 $ $ 95 $ $ 103 $ $ 113 $ $ 120 $ $ 114 $ $ 126 $ $ 115 $ $ 109 $ $ 200 $ $ 206 $ $ 116 $ $ 93 $ $ 96 $ $ 108 $ $ 135 $ $ 86 $ $ 55 $ $ 159 $ $ 48 $ $ 146

t an nt School District Pl $ $ 56 Maintenance $ $ 73 $ $ 104 $ $ 68 $ $ 82 $ $ 59 $ $ 75 $ $ 127 $ $ 88 $ $ 42 $ $ 73 $ $ 78 $ $ 38 $ $ 59 $ $ 65 $ $ 53 $ $ 84 $ $ 68 $ $ 79 $ $ 127 $ $ 38 $ $ 44 $ $ 115 $ $ 56 $ $ 56 $ $ 24 $ $ 38 $ $ 42 $ $ 109 $ $ 76 $ $ 74 $ $ 55 $ $ 42 & Operations ve ve ti ra t s i n i Services m Suppport Suppport $ $ 841 $ $ 921 $ $ 814 $ $ 566 $ $ 823 $ $ 713 $ $ 602 $ $ 988 $ $ 834 $ $ 600 $ $ 877 $ $ 780 $ $ 550 $ $ 778 $ $ 827 $ $ 879 $ $ 886 $ $ 791 $ $ 656 $ $ 988 $ $ 730 $ $ 550 $ $ 962 $ $ 560 $ $ 885 $ $ 899 $ $ 794 $ $ 752 $ $ 890 $ $ 764 $ $ 951 $ $ 713 $ $ 900 Ad

t FY 2008 - 2009 Approved General Fund Budgets Fund General Approved - 2009 FY 2008 en d u ClearIndepende Creek St Support Support Services $ $ 277 $ $ 207 $ $ 190 $ $ 182 $ $ 118 $ $ 134 $ $ 213 $ $ 281 $ $ 147 $ $ 129 $ $ 165 $ $ 150 $ $ 98 $ $ 212 $ $ 174 $ $ 211 $ $ 180 $ $ 189 $ $ 98 $ $ 215 $ $ 215 $ $ 218 $ $ 217 $ $ 166 $ $ 176 $ $ 181 $ $ 215 $ $ 239 $ $ 246 $ $ 144 $ $ 281 $ $ 169 $ $ 194

Expenditures per Student Compared to District Academic Performance Academic District to Compared Student per Expenditures & on ti ruc t School Leadership ns $ $ 724 $ $ 718 $ $ 748 $ $ 767 $ $ 893 $ $ 488 $ $ 641 $ $ 1,227 $ $ 682 $ $ 745 $ $ 601 $ $ 727 $ $ 488 $ $ 676 $ $ 661 $ $ 736 $ $ 798 $ $ 754 $ $ 684 $ $ 1,227 $ $ 638 $ $ 872 $ $ 813 $ $ 580 $ $ 690 $ $ 767 $ $ 768 $ $ 760 $ $ 832 $ $ 803 $ $ 735 $ $ 825 $ $ 1,007 I 3,701 4,163 4,654 4,687 Related Instruction & $ $ 548 $ $ 540 $ $ 601 $ $ 509 $ $ 486 $ $ 472 $ $ 645 $ $ 691 $ $ 583 $ $ 402 $ $ 581 $ $ 510 $ $ 402 $ $ 504 $ $ 456 $ $ 482 $ $ 593 $ $ 553 $ $ 472 $ $ 646 $ $ 656 $ $ 459 $ $ 683 $ $ 451 $ $ 507 $ $ 650 $ $ 588 $ $ 520 $ $ 670 $ $ 475 $ $ 668 $ $ 535 $ $ 691

2008 Rating Academic Recognized Recognized Recognized Recognized Acceptable 5,066 Acceptable 5,018 Recognized 4,687 Acceptable 3,957

Acceptable 4,585 Acceptable 4,736

Acceptable 4,659 Acceptable 4,749

Acceptable 5,221 Acceptable 5,790 Acceptable 4,815 Acceptable 4,577 Acceptable 4,376

Acceptable 4,871 Acceptable 5,121 Acceptable 4,636 Acceptable 4,743 Acceptable 5,181 Acceptable 4,806 Acceptable 4,757 Acceptable 4,996 Acceptable 4,143 Acceptable 4,920 Acceptable 4,583 Acceptable 5,740 Acceptable 4,555 School DistrictSchool Enrollment Spring Branch ISD 32,160 Clear Creek ISD 37,000 Conroe ISD 48,296 North East ISD 63,000 Irving ISD 32,764 High 5,790 Alief ISD 45,000 Cypress Fairbanks ISD 100,788 Pasadena ISD 51,200 Katy ISDKaty 53,762 Low 3,701 Allen ISD 17,623 Fort Bend ISD 69,450 Plano ISD 50,530 Klein ISD 38,666 Average 4,750 Arlington ISD 62,852 Fort Worth ISD 79,369 Richardson ISD 33,951 Leander ISD 28,758 ClearCreek ISD Ranking¹Includes Payments to a Tax Increment ReinvestmentZone & Excludes Chapter 41 Payments 30Districts 17th 19th 11th 16th 28th 15th 8th 24th 9th 20th 2nd 13th Austin ISD 83,437 Garland ISD 57,000 Round Rock ISD 41,100 Lewisville ISD 50,000 Birdville ISD 20,658 Hurst Euless Bedford ISD 20,000 San Antonio ISD 55,000 Mansfield ISD 31,136 Carrolton Farmers-Branch ISD 26,429 Humble ISD 33,898 Spring ISD 32,000 McKinney ISD 19,743 Mesquite ISD 35,800

24 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Financial Performance Measures

Many business-related issues are covered in this report. The primary reporting tool, however, is the Financial Accountability Ratings Worksheet. This worksheet was developed by representatives of the Texas Education Agency (TEA), the Texas Business & Education Council (TBEC) and the Texas Association of School Business Officials (TASBO). It is administered by the TEA and calculated on information submitted to the Agency via our PEIMS submission each year. The worksheet consists of 21 Indicators, each weighted equally with the exception of the Critical Indicators.

The District received official notification of the 2007 Final School FIRST rating on August 20, 2008 for the 2006-2007 fiscal year. Clear Creek has a rating of “Superior Achievement”, scoring a perfect 21 out of a possible 21 on this external financial performance measure.

Bond Ratings In order to ensure the lowest interest rates on bonds issued by the District, it is important to maintain a high credit rating. The District’s underlying credit rating was upgraded in April 2008 from AA- to AA by both Standard and Poor’s Investor Service and Fitch Ratings Service while Moody’s Investor Service kept its ratings at an Aa3 level. As a result, the District has issued its bonds at very favorable interest rates.

♦ Budget Highlights

The following is presented as a brief overview of significant items and issues contained in the 2008- 2009 budget. Due to uncertainties in school finance, campus leaders and budget managers were asked to provide a no increase budget. As a result, major impacts on the budget reflect projects or expenditures that are critical to student success. As discussed earlier in this document, the Administration performed a detailed review of all revenues and expenditures which was focused on aligning the allocation of resources with the accomplishment of District goals and objectives. The Strategic Plan reference to the District's Strategic and Performance Goals and Performance Objectives is included for all cost increases where appropriate.

Major Impacts FY 2009 General Fund Budget Strategic Plan Description Alignment Amount

Prior Year Adopted General Fund Budget 2007-2008 $ 249,250,959

Major Changes to the Budget

Salaries & Benefits

• Teacher Salary Plan Goal # 1, 5 4,300,000 • Support Staff Salary to Market Plan (includes a 3.5% base increase) Goal # 1, 5 1,570,000

• District-wide Salary to Market Plan Goal # 1, 5 500,000

Total Salaries & Benefits $ 6,370,000

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Staffing Plans – New Positions

• Elementary & Secondary Teachers – 36.0 FTE’s Goal # 1, 3 $ 1,680,700

• Clear Horizons Early College High School Teachers – 4.0 FTE’s Goal # 1, 3 195,900

• Special Education Elementary Team Leaders – 8.0 FTE’s Goal # 1, 3 432,000

• District-wide Special Education Teachers – 28.0 FTE’s Goal # 1, 3 1,151,500

• District-wide Campus At-Risk Staffing Plan – 11.0 FTE’s Goal # 1, 3 511,250

• New School Start-up Staffing

o Ralph Parr Elementary School – 2.63 FTE’s Goal # 1, 4, 5 132,300

o Dr. Sandra Mossman Elementary School – 2.63 FTE’s Goal # 1, 4, 5 132,300

o Clear Creek Intermediate School – 1.33 FTE’s Goal # 1, 4, 5 79,800

o Clear Springs High School – 32.5 FTE’s Goal # 1, 4, 5 1,522,250

• Campus Clerical Support (Paraprofessionals) – 3.0 FTE’s Goal # 1, 2, 4, 5 64,500

• District-wide 5 year Staffing Plan – 21.0 FTE’s Goal # 1, 2, 4, 5 1,252,600

• Support Staff (Maintenance, Custodial, Bus Drivers) – 13.0 FTE’s Goal # 1, 3, 4, 5 270,000

Total New Staffing – 163.0 FTE’s $ 7,425,100

New Initiatives & Programs

• Special Education Services Goal # 1, 2, 3 $ 850,000

• Student Software Goal # 1, 2, 3 700,000

• Career & Technical Education Goal # 1, 2, 3 70,000

• Technology Initiatives Goal # 1, 2, 3 200,000

• Additional Campus Support Goal # 1, 2, 3 180,000

• Smaller Learning Communities Initiatives Goal # 1, 2, 3 97,000

• Instructional Supplies & Equipment Goal # 1, 2, 3 454,027

Total New Initiatives $ 2,551,027

Operating Expense Increases

• Utilities/Energy Goal # 4, 5 $ 1,850,000

• Fuel Goal # 4, 5 1,200,000

• Operating & Support Services Goal # 3, 4, 5 415,000

• Operational Cost Reductions

o Reduction in Property & Casualty Insurance Goal # 5, 6 (1,000,000)

Total Operating Cost Increases $ 2,465,000

Intergovernmental Charges

• TRS On-Behalf Payment Goal # 1 $ 2,076,000

Total Intergovernmental Charges Increase $ 2,076,000

Total General Fund Budget Increase $ 20,887,127

ADOPTED GENERAL FUND BUDGET 2008-2009 $ 270,138,086 26 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Long Range Compensation Plans

The FY 2008-2009 Compensation Plan includes several of the District’s long range salary to market plans. This year the Long Range Teacher Salary Plan called for the District to allocate a higher percentage of funds to teachers with twenty plus years of experience. The Board approved a $4.3 million pool of money (3.5% of total teacher payroll) for teacher salary allocations.

The Board approved several other long range salary plans to move District salaries to more market competitive levels. First, the District continued the Long Range Administrator Salary to Market Plan which aligns administrative salaries with our competitors. Second, the Board approved internal equity adjustments for paraprofessionals. This is the third year of our multi-year plan to move paraprofessional salaries to market competitive levels. We also found that some paraprofessional employees with similar experience and job duties were not paid equitable salaries. The plan corrected those problem areas. Finally, the Board approved a long range plan to move auxiliary salaries to more competitive levels. Similar to the paraprofessional plan, this plan combined market salary adjustments with experience based salary adjustments to ensure auxiliary salaries are both competitive and fair. As a result of these plans, all non-teaching staff was guaranteed a base salary increase of 3.5%. Teacher salary increased on average 3.5%. All teachers received at least a $1,500 increase; however, some teachers realized increases of $2,750 in order to move their salary to market competitive levels.

♦ Acknowledgements

We appreciate the leadership and fiscal support provided by the Clear Creek Independent School District Board of Trustees and the Clear Creek community for development, implementation and maintenance of an excellent educational program for the children of the District.

We have presented the challenges, opportunities, and high expectations of the Clear Creek Independent School District. The Clear Creek Independent School District Board of Trustees, administration, and staff are committed to making the Clear Creek Independent School District one of the top districts in the state. With a focus on high expectations, a common curriculum meeting the needs of all students, quality teachers, parental involvement, and the full utilization of facilities, the Clear Creek Independent School District will meet this goal.

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Clear Creek Independent School District 2008 – 2009 Board of Trustees8

Dr. Greg Smith Stuart Stromeyer Dee Scott Ken Baliker Superintendent of Schools President Vice President Secretary District # 4 District # 5 District # 3 Term Expires in May 2009 Term Expires in May 2009 Term Expires in May 2011

Robert Davee Ann Hammond Ralph Parr Winifred Weber District # 1 At-Large Position B At-Large Position A District # 2 Term Expires in May 2010 Term Expires May 2010 Term Expires in May 2009 Term Expires in May 2011

Paul McLarty Jeff Kohlenberg Chief Financial Officer Director of Finance

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♦ Board Meetings

All Clear Creek Independent School District board meetings are open to the public. Regular meetings will be held at 6:00 p.m. on the fourth Monday of each month in the board room located at the CCISD Education Support Center, 2425 East Main St., League City, Texas. Trustees will also hold special meetings and work sessions as needed.

♦ If You Wish to Address the Board

The public may address the board during the community input participation portion of the board meeting. Remarks may be related to any topic, whether agenda items or non-agenda items, and are limited to three minutes. Requests to address the Board must be submitted in writing to the Superintendent by noon of the Thursday before a regular Board Meeting.

www.ccisd.net

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Clear Creek Independent School District 2008 - 2009 Adopted Budget School Board and Administrators

Board of Trustees Stuart Stromeyer ...... President Dee Scott...... Vice President Ken Baliker...... Secretary Robert A. Davee...... Member Ann Hammond...... Member Ralph Parr ...... Member Winifred Weber ...... Member

Administration

Dr. Greg Smith ...... Superintendent of Schools Dr. Steven Ebell ...... Deputy Superintendent - Curriculum &Instruction Ron McPherson ...... Associate Superintendent for Operations Paul McLarty...... Chief Financial Officer Tina Farrell...... Assistant Superintendent for Instruction and Curriculum Alex Torrez...... Assistant Superintendent for Secondary Education Holly Hughes ...... Assistant Superintendent for Elementary Education Dr. David O’Neill ...... Assistant Superintendent of Human Resources Sheila Haddock ...... Director of Policy and Legal Affairs Elaina Polsen ...... Director of Public Information

Principals

Scott Bockart...... Clear Creek High School Dr. Christopher Moran...... Clear Lake High School Kristi LaMell...... Clear Brook High School Gail Love...... Clear Springs High School Gail Ladehoff ...... Clear Horizons Early College High School Karen Engle...... Clear View Education Center Sandy Davenport ...... Clear Path Alternative School Deanna Daws ...... Brookside Intermediate School Brett Lemley...... Clear Lake Intermediate School Peter Caterina...... Creekside Intermediate School Kim Broulliard...... League City Intermediate School David Williams ...... Seabrook Intermediate School Susan Stuart ...... Space Center Intermediate School Barry Beck ...... Victory Lakes Intermediate School Dr. Lori Broughton...... Westbrook Intermediate School 30 FY 2008 – 2009 Budget Detailed Budget Analysis

Jane Kelling...... Armand Bayou Elementary School Trudy Knight ...... Henry Bauerschlag Elementary School Erin Tite...... James F. Bay Elementary School Cathy Homer ...... Brookwood Elementary School Leslie Dragg ...... Clear Lake City Elementary School Monica Giuffre ...... Falcon Pass Elementary School Elaine Sanders...... Lloyd R. Ferguson Elementary School Suzanne Jones...... Darwin L. Gilmore Elementary School Kim Noel...... Art & Pat Goforth Elementary School Stephanie McBride...... P.H. Greene Elementary School Stephanie King ...... Walter Hall Elementary School Kelly Chapman...... I.W. and Eleanor Hyde Elementary School Yolanda Jones ...... C.D. Landolt Elementary School Carla Massa...... League City Elementary School Dr. Michael Marquez ...... Margaret S. McWhirter Elementary School Laurie O’Neill ...... North Pointe Elementary School Jim Stephens...... G.W. Robinson Elementary School Mark Smith ...... James H. Ross Elementary School Brittani Moses...... LaVace Stewart Elementary School Kathy Gouger ...... John F. Ward Elementary School Teresa Snider ...... Arlyne & Alan Weber Elementary School Ann Arrington ...... Wedgewood Elementary School Dana Biddy ...... G.H. Whitcomb Elementary School Matt Paulson ...... Edward H. White II Elementary School

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♦ The District

Clear Creek is an Independent School District and is established under laws set out in Section 11 of the Texas Education Code. Independent school districts have the primary responsibility for implementing the state’s system of public education and ensuring student performance in accordance with the Texas Education Code. Independent school districts are governed by a board of trustees who, as a body corporate, shall oversee the management of the district. Clear Creek ISD is fully accredited by the Texas Education Agency (TEA) as required in Section 11.001 of the Texas Education Code.

Celebrating sixty years of excellence, Clear Creek Independent School District, is situated just south of Houston. Our story begins in 1948 when schools in League City, Seabrook, Webster and Kemah consolidated to form the Clear Creek Independent School District. At the time the schools were unified, there were fewer than 1,000 students in four schools.

Clear Creek ISD embraces the communities of League City, Seabrook, Webster, Kemah, El Lago, Nassau Bay, Clear Lake Shores and Taylor Lake Village, along with portions of Bacliff, Friendswood, Houston and Pasadena. Clear Creek ISD encompasses parts of Galveston and Harris counties. The District serves over 37,200 students in grades pre-kindergarten through twelve. The district operates twenty-four elementary schools, eight middle schools, six high schools, and one alternative campus.

Clear Creek ISD is meeting the challenge of a fast growth school district by proactively analyzing facility needs and placing bond issues for taxpayer approval. Taxpayers approved a $264 million bond program in February of 2004 to accommodate growth and facility needs through 2007. This bond program provided renovations, classroom additions and improvements, two new elementary schools, one new high school, and the rebuild of Clear Creek High School, a 50 year-old facility.

Taxpayers approved another $183 million bond program in May of 2007. This bond program provides funding for two elementary schools, one intermediate school and one high school campus. In addition, funds are provided to return two existing Ninth Grade Centers to intermediate campuses.

Clear Creek ISD is home to the NASA/Johnson Space Center; the numerous engineering and technical organizations which support the space industry; the fishing and recreation areas of Galveston Bay; chemical and energy resource industries; and the University of Houston-Clear Lake.

The heart of a school district is its people – and the Clear Creek Independent School District takes great pride in its highly qualified Board of Trustees, administration, faculty and staff, all of whom are dedicated to providing the best possible education environment for all students. Parent and community interest and support strengthen the school program.

Clear Creek ISD is now the 30th largest of the 1,037 school districts in Texas. The district employs over 4,800 persons, over 2,600 of which are teachers. Student test scores are routinely well above the state average. Approximately 80 percent of graduating seniors plan to attend college or technical schools. We are proud that more than 36 percent of the faculty members have a master’s degree.

Our students and staff continue to excel in many arenas. In fact, Clear Creek has the distinction of being the only large school district (a district with more than 25,000 students) in the State of Texas to have achieved a Recognized rating from the TEA for eleven of the last twelve years. Clear Creek ISD received a Recognized rating from the Texas Education Agency (TEA) again in 2007-2008.

The District had eighteen schools rated Exemplary (the highest rating in Texas) in 2007-2008. That is forty seven percent (47%) of our campuses. All of the District’s twenty four elementary campuses are rated either Recognized or Exemplary. This is an indication of the rigorous standards established under the Texas Assessment of Knowledge and Skills (TAKS).

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♦ District Map

Mission Statement

The mission of the Clear Creek Independent School district is to educate all students to succeed, to equip them to contribute to the community and to instill in them a vision to excel.

Vision Statement

The Clear Creek Independent School district is a highly educated and diverse community committed to excellence in education, ensuring all students graduate ready to meet the challenges of an ever-changing world with the desire to be life-long learners.

District Motto

Educate – Equip – Excel It is the mission of the Clear Creek Independent School District to educate all students to succeed, to equip them to contribute to the community and to instill in them a vision to excel. Our goal is to fulfill this mission by following a very simple formula that is embodied in our motto: Educate – Equip – Excel. Every staff member bases student success and program development on these three simple words. 36 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Portrait of a Clear Creek ISD Graduate

Clear Creek is very proud of its distinguished status among Texas school districts. When we look at our graduates, we find a number of things in common. We have developed a Portrait of a Clear Creek

ISD Graduate that summarizes the impact of an education in our District.

Clear Creek Independent School District graduates are: • Effective communicators who master the basic skills of reading, writing, speaking/listening, and mathematical skills sufficient for daily living and for efficient functioning in a diverse and complex society. • Creative problem solvers who have the ability to comprehend oral and written information, process the information and/or knowledge, and can anticipate, assess, and resolve problems. • Collaborative team members who use leadership and group skills to establish effective, supportive, and cooperative interpersonal relationships with and between others. • Wellness advocates who practice habits that provide for continuous improvement and maintenance of their mental and physical health. They are self-assured and have a positive self-concept. • Technology users who understand and apply a variety of current technologies to access information, produce products, and solve problems in their personal and professional lives. • Celebrants of diversity who practice respect for diversity through acceptance and tolerance of cultures other than their own. Attributes include speaking positively about other cultures, associating with heterogeneous groups, accepting and practicing different cultural experiences, and continuously learning about other cultures. • Future employees who have a strong work ethic by demonstrating knowledge about current careers and possessing the appropriate skills necessary to attain work, and continue to seek and update training throughout their careers. • Life-long learners, who commit to the process of learning and value education in order to create a vision for their future, set priorities and goals, create options, take responsibility for pursuing these goals, and monitor and evaluate their programs.

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♦ Strategic Planning

District Planning Model Clear Creek Independent School District has developed strategic goals encompassing its customers, resources, and products. It can best be described in the CCISD Enterprise Model and Hierarchy that can be found on the District website and detailed below.

Clear Creek Independent School District – Enterprise Model Developing a strategic plan based upon the Enterprise Model requires an organization to develop a keen understanding of its customers, resources and products. While school districts do not always look at their operations in this manner, CCISD believes it is important to take a business approach to running a school district and so it utilizes a highly developed approach to strategic planning. By identifying customers, resources and products, the District is able to better understand the core purpose and funding needs of educating the children in its district.

CCISD Strategic Plan

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Clear Creek Independent School District – Hierarchy After identifying the key components of the district, the Board of Trustees and District staff was able to develop a comprehensive set of strategic goals that would encompass every aspect of District operations. Listed below is the District’s hierarchy of needs for student success. This hierarchy focuses on customers (involved parents and community), resources (the business management of district), and products (improved student achievement).

Strategic and Performance Goals & Performance Objectives

Strategic Goal # 1: Improved student achievement

¾ Performance Goal: To Improve the academic achievement of every student

Performance Objectives: A. 90% performance in all tested content areas on the Texas Statewide Assessment Program B. 97% attendance rate on all campuses C. 91% graduation completion rate D. 50% increase in students taking PSAT E. 5% increase in College Admissions Testing F. 3% increase in Advanced Placement Testing G. 45% students completing a minimum of one advanced academic course H. 83% of students graduating having advanced graduation plans I. 100% posting of District vision and mission statements J. 85% satisfaction on surveys K. 100% compliance with District initiatives

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Strategic Goal # 2: Physical, social, and cognitive development for individual student success

¾ Performance Goal: To develop effective processes to insure the individual needs of each child are met.

Performance Objectives: A. Increase health services to students and families through partnerships and programs. B. Increase the number and types of businesses in the community partnership office Career Discovery Day Program. C. Increase student support through group counseling and family services.

Strategic Goal # 3: Involvement of parents/community in education process

¾ Performance Goal: To develop a strong network of parent/community partnerships to improve the education process for all students.

Performance Objectives: A. Increase the number of partnerships and activities to involve parents in the education process. B. Increase programs and process to improve communication with parents/students. C. Increase information available to parents on the District website.

Strategic Goal # 4: Safe and effective learning environments

¾ Performance Goal: To provide safe, effective and supportive learning environments for all students.

Performance Objectives: A. Increase reliable, safe access to technology and technology services for all students and staff. B. Increase safety standards for all facility designs.

Strategic Goal # 5: Efficient and effective management of resources

¾ Performance Goal: Efficient and effective management of resources to ensure District efforts and resources are focused directly on improving student performance.

Performance Objectives: 1. Increase revenue sources. 2. Increase standardized processes for district-wide implementation.

Strategic Goal # 6: Implementation of efficient and effective processes

¾ Performance Goal: To implement effective and efficient processes to ensure these processes are focused on student success initiatives.

Performance Objectives: A. Increase processes and procedures for student programs. B. Increase efficient and effective processes in all departments.

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CLEAR CREEK INDEPENDENT SCHOOL DISTRICT ORGANIZATION CHART

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♦ Budget and Financial Policies

Legal Requirements for Budgets Legal requirements for school district budgets are formulated by the state, Texas Education Agency, and the local district.

Statement of Texas Law Sections 44.002 through 44.006 of the Texas Education Code establish the legal basis for budget development in school districts. The following six items summarize the legal requirements from the code:

• The superintendent is the budget officer for the district and prepares or causes the budget to be prepared.

Note: TEA recommends that an interactive approach between the board of trustees and the superintendent be taken to establish the budget process and define related roles and responsibilities.

• The district budget must be prepared by a date set by the state board of education.

• The president of the board of trustees must call a public meeting of the board of trustees, giving ten days public notice in a newspaper, for the adoption of the district budget. Any taxpayer in the district may be present and participate in the meeting.

• No funds may be expended in any manner other than as provided for in the adopted budget. The board does have the authority to amend the budget or adopt a supplementary emergency budget to cover unforeseen expenditures.

• The budget must be prepared in accordance with GAAP (generally accepted accounting principles) and state guidelines. The budget must be legally adopted before the adoption of the tax rate.

TEA Legal Requirements TEA has developed additional requirements for school district budget preparation as follows:

• The budget must be adopted by the board of trustees, inclusive of amendments, no later than August 31.

• Minutes from district board meetings will be used by TEA to record adoption of and amendments to the budget.

• Budgets for the General Fund, the Food Service Fund (whether accounted for in the General Fund, a Special Revenue Fund or Enterprise Fund) and the Debt Service Fund must be included in the official district budget (legal or fiscal year basis). These budgets must be prepared and approved at least at the fund and function levels to comply with the state's legal level of control mandates.

Note: Districts may prepare and approve budgets for other funds and/or with even greater detail at their discretion. Such local decisions may affect the need for budget amendments and financial reporting requirements.

• The officially adopted district budget, as amended, must be filed with TEA through PEIMS (Public Education Information Management System) by the date prescribed in the annual

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system guidelines. Revenues, other sources, other uses, and fund balances must be reported by fund, object (at the fourth level), fiscal year, and amount.

• Expenditures must be reported by fund, function, object (at the second level), organization, fiscal year, program intent and amount.

• A school district must amend the official budget before it exceeds a functional expenditure category, i.e., instruction, administration, etc., in the total district budget. The annual financial and compliance report should reflect the amended budget amounts on the schedule comparing budgeted and actual amounts. The requirement for filing the amended budget with TEA is satisfied when the school district files its Annual Financial and Compliance Report.

Local District Requirements In addition to state legal requirements, the Clear Creek Independent School District Board of Trustees has established their own requirements for annual budget preparation through Board Policy CE (LEGAL and LOCAL) Annual Operating Budget.

♦ ANNUAL OPERATING BUDGET, CE (LEGAL) DATE ISSUED: 6/7/2006 - UPDATE 78

Authorized Expenditures The District shall not lend its credit or gratuitously grant public money or things of value in aid of any individual, association, or corporation. Tex. Const. Art. III, Sec. 52; Brazoria County v. Perry, 537 S.W.2d 89 (Tex. Civ. App.-Houston [1st Dist.] 1976, no writ)

The District shall not grant any extra compensation, fee, or allowance to a public officer, agent, servant, or contractor after service has been rendered or a contract entered into and performed in whole or in part. Nor shall the District pay or authorize the payment of any claim against the District under any agreement or contract made without authority of law. Tex. Const. Art. III, Sec. 53; Harlingen ISD v. C.H. Page and Bro., 48 S.W.2d 983 (Comm. App. 1932)

The state and county available funds disbursed to the District shall be used exclusively for salaries of professional certified staff and for interest on money borrowed on short time to pay such salaries, when salaries become due before school funds for the current year become available. Loans for paying professional certified staff salaries may not be paid out of funds other than those for the current year. Education Code 45.105(b)

Local funds from District taxes, tuition fees, other local sources, and state funds not designated for a specific purpose may be used for salaries of any personnel and for purchasing appliances and supplies; for the payment of insurance premiums; for buying school sites; for buying, building, repairing, and renting school buildings, including acquisition of school buildings and sites by leasing same through annual payments with an ultimate option to purchase [see CHG(LEGAL)]; and for other purposes necessary in the conduct of the public schools to be determined by the Board. Education Code 45.105(c)

No public funds of the District may be spent in any manner other than as provided for in the budget adopted by the Board. Education Code 44.006(a)

Use of District Resources The Board shall not enter into an agreement authorizing the use of District employees, property, or resources for the provision of materials or labor for the design, construction, or renovation of improvements to real property not owned or leased by the District.

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The Board may not use state or local funds or other resources of the District to electioneer for or against any candidate, measure or political party. Education Code 11.168

Commitment of Current Revenue A contract for the acquisition, including lease, of real or personal property is a commitment of the District's current revenue only, provided the contract contains either or both of the following provisions:

1. Retains to the Board the continuing right to terminate the contract at the expiration of each budget period during the term of the contract.

2. Is conditioned on a best efforts attempt by the Board to obtain and appropriate funds for payment of the contract. Local Gov't Code 271.903

Fiscal Year The Board may determine if the District's fiscal year begins on July 1 or September 1 of each year. Education Code 44.0011

Budget Preparation The Superintendent shall prepare, or cause to be prepared, a proposed budget covering all estimated revenue and proposed expenditures of the District for the following fiscal year. Education Code 44.002

Deadlines The proposed budget shall be prepared on or before a date set by the State Board of Education, currently August 20 (June 19 if the District uses a July 1 fiscal year start date). Education Code 44.002(a); 19 TAC 109.1(a), 109.41

The adopted budget must be filed with the Texas Education Agency on or before the date established in the Financial Accountability System Resource Guide. Education Code 44.005; 19 TAC 109.1(a)

Public Meeting on Budget and Proposed Tax Rate After the proposed budget has been prepared, the Board President shall call a Board meeting for the purpose of adopting a budget for the succeeding fiscal year. Any taxpayer of the District may be present and participate in the meeting. Education Code 44.004 [See CCG (LEGAL) for provisions governing tax rate adoption].

The meeting must comply with the notice requirements of the Open Meetings Act. Gov't Code 551.041, 551.043

Published Notice The Board President shall also provide for publication of notice of the budget and proposed tax rate meeting in a daily, weekly, or biweekly newspaper published in the District. If no daily, weekly, or biweekly newspaper is published in the District, the President shall provide for publication of notice in at least one newspaper of general circulation in the county in which the District's central administrative office is located. The notice shall be published not earlier than the 30th day or later than the tenth day before the date of the hearing.

Form of Notice The published notice of the public meeting to discuss and adopt the budget and the proposed tax rate must meet the size, format, and content requirements dictated by law.

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The notice is not valid if it does not substantially conform to the language and format prescribed by the comptroller.

Taxpayer Injunction If the District has not complied with the published notice requirements in the FORM OF NOTICE described above, and the requirements for DISTRICTS WITH JULY 1 FISCAL YEAR below, if applicable, and the failure to comply was not in good faith, a person who owns taxable property in the District is entitled to an injunction restraining the collection of taxes by the District. An action to enjoin the collection of taxes must be filed before the date the District delivers substantially all of its tax bills. Education Code 44.004

Publication of Proposed Budget Summary Concurrently with the publication of notice of the budget under Education Code 44.004, the District shall post a summary of the proposed budget on the District’s Internet Web site or, if the District has no Internet Web site, in the District’s central administrative office.

The budget summary must include a comparison to the previous year’s actual spending and information relating to per student and aggregate spending on:

1. Instruction; 2. Instructional support; 3. Central administration; 4. District operations; 5. Debt service; and 6. Any other category designated by the Commissioner.

Education Code 44.0041

Budget Adoption The Board shall adopt a budget to cover all expenditures for the succeeding fiscal year at the meeting called for that purpose and before the adoption of the tax rate for the tax year in which the year covered by the budget begins.

Districts with A July 1 Fiscal Year A district with a fiscal year beginning July 1 may use the certified estimate of the taxable value of District property in preparing the published notice if the District does not receive the certified appraisal roll on or before June 7. A district that uses a certified estimate may adopt a budget at the public meeting designated in the published notice prepared using the estimate, but the District may not adopt a tax rate before the District receives the certified appraisal roll for the District. Education Code 44.004

By June 7, the chief appraiser shall prepare and certify an estimate of the taxable value of school District property. Tax Code 26.01(d)

Amendment of Approved Budget The Board shall have the authority to amend the approved budget or to adopt a supplementary emergency budget to cover necessary unforeseen expenses.

Copies of any amendment or supplementary budget must be prepared and filed in accordance with State Board rules. Education Code 44.006

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Failure to Comply with Budget Requirements A Board member who votes to approve any expenditure of school funds in excess of the item or items appropriated in the adopted budget or a supplementary or amended budget commits a misdemeanor offense. Education Code 44.052(c)

Certain Donations The District may donate funds or other property or service to the adjutant general's department or to the Texas National Guard. Gov't Code 431.035(c), 431.045 (b)

♦ ANNUAL OPERATING BUDGET, CE (LOCAL) DATE ISSUED: 6/29/2007

Fiscal Year The District shall operate on a fiscal year beginning September 1 and ending August 31.

Goals and Objectives The purpose of the budget is to provide a statement, expressed in financial terms, that serves as management’s primary tool for planning and controlling operations.

Primary objectives of the budget system are to: 1. Assist the formulation of an integrated plan of operations and understanding of how each organization’s activities contribute to the overall mission.

2. Provide a means of communication between various levels of management by stating the objectives of each organization and the funds necessary to achieve them.

3. Provide each organization head with the financial information necessary to perform his or her function and control expenditures.

4. Provide a means of measuring and guiding performance by comparing planned (budgeted) expenditures and workload against actual expenditures and workload.

5. Provide the historical data required for realistic budget preparation. 6. Relate expenditures to the three year financial, education, and construction plans.

Budget Planning and Development Budget planning shall be an integral part of overall program planning so that the budget effectively reflects the District's goals and the plan to implement them. In the budget planning process, general educational goals, specific program goals, and alternatives for achieving program goals shall be considered, as well as input from the District and campus level site-based committees. The District administration shall allocate funds according to goals and priorities developed by the Board of Trustees. Staff shall submit a preliminary plan and its rationale in May. The Board shall at a minimum receive revised financial estimates in June, July, and August. The Board shall be informed as new information impacting the budget becomes available.

Availability of Proposed Budget After it is presented to the Board and prior to adoption, a copy of the proposed budget shall be available to the public upon request from the office of public information or Superintendent. The Superintendent or designee shall be available to answer questions arising from inspection of the budget.

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Public Budget Meeting The annual public meeting to discuss the proposed budget and tax rate shall be conducted as follows:

1. The Board President shall request at the beginning of the meeting that all persons who desire to provide input on the proposed budget and/or tax rate sign up on the sheet provided.

2. Prior to the beginning of the meeting, the Board may establish time limits for speakers.

3. Speakers shall confine their remarks to the appropriation of funds as contained in the proposed budget and/or the tax rate.

4. No officer or employee of the District shall be required to respond to questions from speakers at the meeting.

Authorized Expenditures The adopted budget provides authority to expend funds for the purposes indicated and in accordance with state law, Board policy, and the District's approved purchasing procedures. The expenditure of funds shall be under the direction of the Superintendent or designee, who shall ensure that funds are expended in accordance with the adopted budget.

Budget Amendments The budget shall be amended when a change is made increasing any one of the functional spending categories or increasing revenue object accounts and other resources. The Superintendent or designee shall recommend budget amendments to the Board for approval.

Reserves The Board and the administration shall work together to maintain two months undesignated fund balance in the maintenance and operations budget and 10% of projected annual debt service payments in undesignated fund balance in the interest and sinking fund budget, barring emergency situations. This level of undesignated reserves will accomplish two Board priorities.

1. To provide adequate funds to meet emergency needs.

2. To ensure a favorable bond rating for the District.

In addition, the Board may establish designated reserves from time to time in order to meet specific District contingencies. The Board will review and approve designated reserves on an annual basis with the adoption of the District’s annual budget in August.

Budget Reporting During the year, the administration shall provide monthly summaries of the budget, as approved, versus actual expenditures. A running record of all development, construction, and maintenance projects accrued costs versus budgeted amounts shall be available throughout the year to support deliberations for project approvals.

Audits Independent audits shall be performed every year or as requested by the Board.

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♦ Budget Process

Objectives of Budgeting The objectives of budgeting are outlined by the Texas Education Agency in the Financial Accountability System Resource Guide.

Performance evaluation allows citizens and taxpayers to hold policy makers and administrators accountable for their actions. Because accountability to citizens often is stated explicitly in state laws and constitutions, it is considered a cornerstone of budgeting and financial reporting. The Governmental Accounting Standards Board (GASB) recognizes its importance with these objectives in its GASB Concepts Statement No. 1 (Section 100.177):

• Financial reporting should provide information to determine whether current-year revenues were sufficient to pay for current-year services.

• Financial reporting should demonstrate whether resources were obtained and used in accordance with the entity's legally adopted budget. It should also demonstrate compliance with other finance-related legal or contractual requirements.

• Financial reporting should provide information to assist users in assessing the service efforts, costs and accomplishments of the governmental entity.

Meeting these objectives requires budget preparation to include several concepts recognizing accountability. Often these concepts have been mandated for state and local public sector budgets. They include requirements that budgets should:

• Be balanced so that current revenues are sufficient to pay for current services.

• Be prepared in accordance with all applicable federal, state, and local legal mandates and requirements.

• Provide a basis for the evaluation of a government's service efforts, costs and accomplishments.

Note: Although the objective of balanced budgets is generally applicable to all school districts to ensure long-term fiscal health, variations of this objective which are considered appropriate for some school districts over short-term periods are available. For example, the balanced budget objective may be met through the use of fund balance reserves to pay for current services during certain periods. Such uses of fund balance reserves must be in accordance with applicable state and local fund balance policies.

Budget Process Overview The budgeting process is comprised of three major phases: planning, preparation and evaluation. The budgetary process begins with sound planning. Planning defines the goals and objectives of campuses and the school district and develops programs to attain those goals and objectives. Once these programs and plans have been established, budgetary resource allocations are made to support them. Budgetary resource allocations are the preparation phase of budgeting. The allocations cannot be made, however, until plans and programs have been established.

Finally, the budget is evaluated for its effectiveness in attaining goals and objectives. Evaluation typically involves an examination of: how funds were expended, what outcomes resulted from the expenditure of funds, and to what degree these outcomes achieved the objectives stated during the planning phase. This evaluation phase is important in determining the following year's budgetary allocations. 49 FY 2008 – 2009 Budget Detailed Budget Analysis

In summary, budget preparation is not a one-time exercise to determine how a school district will allocate funds. Rather, school district budget preparation is part of a continuous cycle of planning and evaluation to achieve district goals.

The Planning Cycle The Budget Process covers the entire financial cycle starting with budget planning and ending with the audited financial statements. The seven steps are:

• Budget Planning November - December 2007 • Budget Preparation February - August 2008 • Board of Trustee Budget Review April – August 2008 • Budget Adoption August 2008 • Tax Rate Adoption August 2008 • Budget Amendments Monthly as needed 2008-09 • Audited Financial Statements January 2009

Budget Planning The budget process is instructionally driven. Budget planning begins with a series of meetings held in November to begin developing broad-based budget goals. The Chief Financial Officer facilitates a number of planning meetings with key District decision makers to develop a list of budget priorities for Board consideration. The Board receives budget priorities from the Superintendent’s Cabinet, the District Educational Improvement Council (DEIC), the CFO Advisory Council (an advisory group of campus leaders throughout the District), and the Citizens Financial Advisory Committee (an advisory group of local business leaders).

The final step in the goal-setting process is a planning meeting with the Board of Trustees in early December. The Board reviews input from all sources and adopts the budget goals, assumptions and priorities that will drive budget development.

The budget calendar is also reviewed with the Board of Trustees at this early planning meeting. The Board may also consider issues highlighted on the District and Campus Improvement Plans as well as the District Strategic Plan at this time.

Budget Preparation Budget preparation begins with a training session for campus leaders and program managers at the time the Budget Manual and budget worksheets are distributed in February. The District utilizes Pentamation accounting software to allow for on-line budget preparation. The District provides annual software training in this area for budget managers.

The District uses site-based budgeting to enhance the ability of campus leaders to serve as effective instructional leaders. Site-based budgeting places the campus leader at the center of the budget preparation process. The site-based budget reflects the prioritized needs of the campus and is aligned with the Campus Improvement Plan and the District’s Strategic Plan.

Each campus receives a campus budget worksheet which reflects initial campus funding allocations. These allocations address equity issues between campuses. They are designed around three cost drivers: total enrollment, at risk student enrollment, and staffing. Enrollment allocations reflect the total number of projected students on a given campus. This number is based on prior year Public Education Information Management System (PEIMS) data adjusted for known or expected increases or decreases

50 FY 2008 – 2009 Budget Detailed Budget Analysis

in enrollment for the coming year. These allocations are then adjusted during the budget year after the October PEIMS snapshot of student enrollment is made available to the District.

The funding allocation for at risk students is based on the number of children eligible to receive free or reduced meals at the campus. These children are considered at risk of failure and additional funds are allocated for tutoring and educational support for these students.

Staff allocations are aligned with student projections. Teacher staffing is set according to the District’s Board approved student teacher ratios and staffing standards (included on pages 53-56). In Texas, the State sets the maximum student to teacher ratio for grades kindergarten through four. This ratio is 22-1 and it can only be exceeded be applying for a waiver from the Texas Education Agency (TEA). The Board has set a District standard student teacher ratio of 25-1 in all secondary core courses (math, science, social studies, and English/language arts). This ensures that student class loads for secondary core subject teachers do not exceed 150 students during a standard six period day. Additionally the Board set the student to teacher ratio in all Algebra I classes at 15 - 1. Research indicates that Algebra I is a bedrock course that can predict student success in high school. In order to ensure student success, the District lowered student to teacher ratios to allow more one-on-one instruction. Remaining staffing decisions are based on the Board approved five year staffing plan. This plan is reviewed and updated for Board approval during the spring of each school year to ensure it meets the needs of our growing district.

After the completed campus and program budget packages have been returned to the Business Office, a District Budget Committee reviews each department’s budget requests with the responsible campus leader, program manager or department director. The review focuses on instructional impact and includes the allocation of existing funds as well as any additional funding requests. At these meetings, department/campus leaders are able to provide District staff with key information that is needed to make budget decisions.

Board of Trustee Budget Review The Board of Trustees regularly receives budget updates that include revisions to the long range financial forecast, the long range staffing plan, the preliminary budget, the compensation & salary plan, and the capital projects/capital improvement plan. If funds are available, the compensation & salary plan for teachers is adopted at the March Board of Trustees meeting. Adopting the plan this early in the budget process provides Clear Creek ISD with a competitive advantage in recruiting new teachers and retaining existing staff. Since Clear Creek ISD is a growing district, staff also asks the Board to approve a number of additional teaching units (fifty or more) at this time to accommodate growth. The compensation & salary plan for support staff is generally adopted in July.

Budget Adoption The Galveston Central Appraisal District certifies the property value roll to taxing entities in July. The District publishes the required legal notice in August. The required legal notice for the FY 2008 – 2009 Budget was published on August 14, 2008. The Board of Trustees held the public hearing and adopted the budget on August 25, 2008.

Tax Rate Adoption Historically, the Galveston Central Appraisal District (CAD) certified all District property. This was true even though a high percentage of district property was located in Harris County. Recent legislation ended this process in 2008 and now appraisal districts cannot cross county lines to appraise property. As a result, the District did not receive its final certified values from the Harris County CAD until the first week of September. In years past, our property values were certified in July by Galveston CAD. After the receiving the certified property value rolls, the Clear Creek Tax Office calculates the effective and rollback tax rate in early August. The required legal notice of the District’s effective and roll-back tax rates was published on August 14, 2008. The Board of Trustees held the public hearing and adopted the tax rate on September 22, 2008. 51 FY 2008 – 2009 Budget Detailed Budget Analysis

Budget Amendments Initial campus budget allocations are based on projected enrollment and are modified after the October PEIMS snapshot. Budget amendments, if necessary, are taken to the Board monthly for consideration and approval.

Audited Financial Statements The final step in the budget cycle is the approval of the audited financial statements. This document includes budget to actual comparisons and highlights the District’s ability to manage its $338 million governmental funds budget. Audited Financial Statements are scheduled for review and approval by the Board on January 26, 2009. In summary, school district budget preparation is part of a continuous cycle of planning, preparation and evaluation to achieve the District’s goals and objectives.

During the FY 2006 budget process, the District developed a separate Capital Replacement Fund to provide monies for major maintenance and capital needs. This fund was capitalized with $14 million in seed money from the FY 2005 budget surplus. The District added an additional $12 million to this fund in FY 2006 and $15 million in FY 2007. At the same time, the District transferred its entire annual capital replacement appropriation budget ($2 million each year) to the fund in FY 2006 and FY 2007. By taking a proactive approach to capital replacement, future bond issues will include fewer major maintenance needs. The operating impact of the capital projects is integrated annually into the budget and is highlighted in the Informational Section of this document within our financial forecasts.

Balanced Budget & Fund Balance Legal requirements for school district budgets are formulated by the state, the Texas Education Agency (TEA) and the local district. However, according to the TEA, case law is where the definition of a balanced budget is found for all Texas school districts. A balanced budget is framed by case law as a budget with total expenditures not greater than the sum of total revenues plus fund balance. Crystal City Independent School District, Appellant v. Bank of Dallas, Appellee, Court of Appeals of Texas, Dallas, March 24, 1987. Fund Balance occurs when revenues exceed expenses in a given year. In fund accounting, this excess carries over to the next fiscal year and is available for any lawful purpose. By policy, Clear Creek’s goal is to maintain an undesignated fund balance equal to a minimum of two months operating expenses. The District currently meets this goal.

52 FY 2008 – 2009 Budget Detailed Budget Analysis

Budget Calendar for the Year 2008 – 2009

Date Time Meeting Budget Topics December 10, 2007 4:30 pm Board Budget Workshop Budget Priority Discussions

December 17, 2007 6:00 pm Board Meeting Approve FY 2009 Budget Priorities

January 22, 2008 7:30 am Finance Committee Mtg. Review Budget Packets & Final Calendar

February 11, 2008 4:30 pm Board Workshop Review Competitive Teacher Salary Analysis Teacher Salary Options February 19, 2008 7:30 am Finance Committee Review Competitive Teacher Salary Analysis Teacher Salary Options March 3, 2008 – March Daily Meetings w/ Departments & Review budget manual and assumptions 31, 2008 Campuses March 10, 2008 4:30 pm Board Workshop Initial Teacher Staffing Proposal March 18, 2008 7:30 am Finance Committee Mtg. Initial Teacher Staffing Proposal

March 24, 2008 6:00 pm Board Meeting Approve Initial Teacher Staffing Proposal

April 14, 2008 4:30 pm Board Workshop General Budget Discussions

April 22, 2008 7:30 am Finance Committee Mtg. Proposed Teacher Salary Options

April 25, 2008 4:30 pm All Campus & Department Budgets Due

April 28, 2008 6:00 pm Board Meeting General Budget Discussions

May 5, 2008 – May 30, Daily Internal Budget Committee Review Budget Requests with each Principal and 2008 Meetings Department head May 12, 2008 5:00 pm Board Budget Workshop Review Teacher Salary Proposals

May 20, 2008 7:30 am Finance Committee Mtg. Review Teacher Salary Proposals

May 26, 2008 6:00 pm Board Meeting Consider Teacher Salary

June 9, 2008 5:00 pm Board Budget Workshop 1st Draft of the Budget 1st Draft of the 3-year Plan June 17, 2008 7:30 am Finance Committee Mtg. General Budget Discussions

June 23, 2008 6:00 pm Board Meeting

July 14, 2008 5:00 pm Board Budget Workshop 2nd Draft of the Budget 2nd Draft of the 3-year Plan July 22, 2008 7:30 am Finance Committee Mtg. General Budget Discussions

July 28, 2008 6:00 pm Board Meeting Approve Admin & Support Staff Salaries

July 25, 2008 Certified Appraised Values from GCAD

August 11, 2008 5:00 pm Board Budget Workshop Final Budget Overview Proposed Budget Proposed Tax Rate August 19, 2008 7:30 am Finance Committee Mtg. General Budget Discussions

August 25, 2008 6:00 pm Board Meeting Agenda Items FY 2009 Budget Hearing Adoption of FY 2009 Budget September 22, 2008 6:00 pm Board Meeting Adoption of 2008 Tax Rate

53 FY 2008 – 2009 Budget Detailed Budget Analysis

54 FY 2008 – 2009 Budget Detailed Budget Analysis

55 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District High School Staffing Standards

POSITION FORMULA ALLOCATION ADMINISTRATIVE SERVICES Head Principal 1 per campus 1 Principal’s Secretary 1 per campus 1 Dean of Instruction 1 per campus 1 Associate Principal 1 per campus 1 Assoc. Principal’s Secretary 1 per campus 1 Assistant Principal 0 - 749 = 1 1000 - 1249 = 1 1500 - 1749 = 1 2000 - 2249 = 1 2500 - 2749 = 1 Asst. Principals’ Secretary 1 Per Assistant Principal COUNSELING SERVICES Lead Counselor/Director of 1 per campus 1 College Counseling Student Support Counselor 1 per campus 1 Counselor 1 Per 500 students Counselor Secretary 1 per campus 1 LIBRARY/MEDIA SERVICES Librarian 1 per 1500 students Library Aide 1 per campus 1 HEALTH SERVICES Registered Nurse 1 per campus 1 Clinic Aide 1 per campus 1 EMT or LVN 1 per campus 1 TEACHING SERVICES Core Content Teachers 1 Per 150 Students 1 Elective Teachers 1 Per 180 Students 1 Specialist Teachers - Math 1 per campus 1 - Science 1 per campus 1 SPECIAL SERVICES ELL Teacher 1 Per 44 Students 1 Dyslexia Teacher 1 per campus 1 Credit Recovery Teacher 1 per campus 1 SLC Leader 1 per campus 1 TAKS Specialist 1 per campus 1 Testing/Assessment Specialist 1 per campus 1 ROTC 1 Per 100-150 Students 1.0 retired officer 1 Per each additional 100 Students 1.0 retired NCO SPECIAL EDUCATION Diagnostician 2 Per campus 2 Speech Therapist (SLP) 1 per campus 1 Resource Teacher 1 per 65 students Per Student Population Content Mastery Teacher 1 per 150 students Per Student Population Content Mastery Aide 1 per 150 student Per Student Population Team Leader 1 per 200 students Per Student Population Special Education Records Clerk 1 per 150 students Per Student Population AA Teacher 1 per 7 students 7 + students add 1 Teacher Per Student Population AA Paraprofessional 1 per 3 students 3 + students add 1 para Per Student Population SD Teacher 1 per 8 students 8 + students add 1 Teacher Per Student Population SD Paraprofessional 1 per 5 students 565 + students add 1 para Per Student Population FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District High School Staffing Standards

POSITION FORMULA ALLOCATION FINE ARTS Band Director 1 per campus 1 Assistant Band Director 1 @ 250 Student Enrollment 1 Choral Music Director 1 per campus 1 Choral Music Asst. Director 1 @ 250 Student Program Enrollment 1 Orchestra Director 1 per campus 1 Assistant Orchestra Director 1 @ 150 Student Program Enrollment Theatre Director 1 per campus 1 Assistant Theatre Dir - Technical 1 @ 151 Student Program Enrollment 1 Assistant Theatre Director 1 @ 301 Student Program Enrollment 1 Drill Team Director 1 per campus 1 Drill Team Assistant Director 1 @ 81 Member Team 1 Dance Teacher 1 Per 180 Students 1 Visual Arts Teachers I-IV 1 Per 180 Students 1 ATHLETICS Campus Athletic Coordinators 2 per campus 2 Male Athletic Trainer 1 Per Campus 1 Female Athletic Trainer 1 Per Campus 1 TECHNOLOGY SERVICES Technology Integration Specialist 1 per 1000 Students 2 Technician 1 per campus 1 SUPPORT STAFF Registrar 1 per campus 1 *Registrar Aide 1 per campus 0 Campus Data Specialist 1 per campus 1 ISS Monitor 1 per campus 1 Receptionist 1 per campus 1 Bookkeeper 1 per campus 1 Attendance Clerk 1 Per 1000 Students 2 Parking Lot Security 1 per campus 2 Lead Custodian 1 per campus 1 Custodian Maintenance Staffing Formula Maintenance Staffing Formula

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♦ Budget Control and Management Process

Management Process For management control purposes all budgets are assigned a local option code. The local option code designates the individual responsible for the particular budget. Typically principals are responsible for campus budgets and program managers are responsible for districtwide budgets. Campus principals and program managers are authorized to submit Purchase Requisitions and reimbursements for the purchase of goods and services. All activities involving payroll costs, salaries and employee benefits, are controlled through the Human Resources department.

Approval Control All purchases of goods and services are processed through the financial management system with the appropriate approval controls to ensure the legal purpose is met and the appropriate account charged. Purchase Requisitions are initially entered at the campus or department level and are approved by the campus principal or program manager submitting the request. Purchase Requisitions for Special Revenue funds are then approved by the appropriate grant program manager. The Purchasing Director reviews the Purchase Requisition to verify that appropriate purchasing laws are being complied with and that the goods and services are being requested from a legally qualified vendor. The Purchase Requisition is then converted into a Purchase Order and forwarded to the vendor. Upon receipt of the invoice Accounts Payable verifies the receipt of the goods or services, cuts a check, and closes the Purchase Order.

Encumbrance Control All purchases of goods and services are processed through the financial system with the appropriate encumbrance controls to ensure the availability of funds. An encumbrance is an obligation in the form of a Purchase Order charged to an appropriation which reserves a part of that appropriation. Additionally pre-encumbrances are also reserved based on submitted Purchase Requisitions awaiting conversion into Purchase Orders. Specifically, the financial software will not allow the entry of a Purchase Requisition unless there are sufficiently available funds at the full account line item level.

Budget Amendments and Budgetary Level of Control The budgetary level of control for Board adopted budgets is at the Object level for revenues and the Function level for expenditures. Any transfer of funds that increases a revenue object or modifies an expenditure function must be approved on a monthly basis by the Board of Trustees.

Final Amended Budget At the last meeting of the fiscal year a formal final amended budget is approved by the Board of Trustees.

Adopted Budget The officially adopted District budget, as amended, must be filed with TEA through PEIMS (Public Education Information Management System) by the date prescribed in the annual system guidelines.

Monthly Reporting The District’s financial statements and investments are reviewed on a monthly basis with the Board of Trustees.

Annual Audit The final stage of the budget cycle is the approval by the Board of Trustees of the audited financial statements part of which includes budget to actual comparisons.

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♦ Financial Structure

Summary of Significant Accounting Policies Clear Creek Independent School District is a public educational agency operating under the applicable laws and regulations of the State of Texas. It is governed by a seven member Board of Trustees elected by registered voters of the District. The District prepares its basic financial statements in conformity with generally accepted accounting principles promulgated by the Governmental Accounting Standards Board (GASB) and other authoritative sources identified in Statement of Auditing Standards No. 69 of the American Institute of Certified Public Accountants; and it complies with the requirements of the appropriate version of the Texas Education Agency’s Financial Accountability System Resource Guide and the requirements of contracts and grants of agencies from which it receives funds.

The District’s Financial Statements are in accordance with GASB No. 34, “Basic Financial Statements and Management Discussion and Analysis for State and Local Governments”, GASB Statement No. 37, which provides additional guidance for the implementation of GASB No. 34, and GASB Statement No. 38, which changes the note disclosure requirements in the financial statements and notes.

GASB No. 34 established a new financial reporting model for state and local governments that included the addition of management’s discussion and analysis, government-wide financial statements, required supplementary information and the elimination of the effects of internal service activities and the use of account groups to the already required fund financial statements and notes.

The GASB determined that fund accounting has and will continue to be essential in helping governments to achieve fiscal accountability and should therefore be retained. The GASB also determined that government-wide financial statements are needed to allow user’s of financial reports to assess a government’s operational accountability. The GASB 34 reporting model integrates fund- based financial reporting and government-wide financial reporting as complementary components of a single comprehensive financial reporting model.

The following is a summary of the most significant accounting policies.

Reporting Entity The District is considered an independent entity for financial reporting purposes and is considered a primary government. The overriding elements associated with prescribed criteria considered in determining that the District’s financial reporting entity status is that of a primary government are: that it has a separately elected governing body; it is legally separate; and it is fiscally independent of other state and local governments.

The Board of Trustees is elected by the public and has the authority to make decisions, appoint administrators and managers, and significantly influence operations. It also has the primary accountability for fiscal matters. Therefore, the District is a financial reporting entity as defined by the Governmental Accounting Standards Board (GASB) in its Statement No. 14, “The Financial Reporting Entity”. The District has also implemented GASB Statement No. 39, “Determining Whether Certain Organizations are Component Units”. The District receives support from various parent teacher organizations, booster clubs and foundation organizations. None of these organizations meet the criteria specified in GASB 39 to be included in the District’s financial statements. Therefore, there are no component units included within the reporting entity.

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Measurement Focus and Basis of Accounting The government-wide financial statements use the economic resources measurement focus and the accrual basis of accounting, as do the proprietary and fiduciary fund statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.

Governmental fund financial statements use the current financial resources measurement focus and the modified accrual basis of accounting. With this measurement focus, only current assets, current liabilities and fund balances are included on the balance sheet. Operating statements of these funds present net increases and decreases in current assets (i.e., revenues and other financing sources, and expenditures and other financing uses).

The modified accrual basis of accounting recognizes revenues in the accounting period in which they become both measurable and available, and it recognizes expenditures in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest and principal on long- term debt, which is recognized when due. The expenditures related to certain compensated absences and claims and judgments are recognized when the obligations are expected to be liquidated with expendable available financial resources. The District considers all revenues available if they are collectible within sixty days after year end.

Revenues from local sources consist primarily of property taxes. Property tax revenues and revenues received from the State are recognized under the susceptible-to-accrual concept, that is, when they are both measurable and available. Miscellaneous revenues are recorded when they are received in cash because they are generally not measurable until actually received. Interest earnings are recorded as earned, since they are both measurable and available.

Grant funds are considered to be earned to the extent of expenditures made under the provisions of the grant. Accordingly, when such funds are received, they are recorded as deferred revenues until related authorized expenditures have been made. If balances are not expended by the end of the project period, grantors some times require the District to refund all or a part of the unused amount.

The Proprietary Fund Types and Fiduciary Funds are accounted for on a flow of economic resources measurement focus and utilize the accrual basis of accounting. This basis of accounting recognizes revenues in the accounting period in which they are earned and become measurable and expenses in the accounting period in which they are incurred and become measurable. The District applies all GASB pronouncements as well as the Financial Accounting Standards Board pronouncements issued on or before November 30, 1989, unless they conflict or contradict GASB pronouncements. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included on the fund Statement of Net Assets. The fund equity is segregated into invested in capital assets net of related debt, restricted net assets, and unrestricted net assets.

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Fund Accounting The District accounts are organized on the basis of funds in accordance with the provisions of the Resource Guide. Each fund is considered to be a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts, which comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses. For financial statement presentation, the District’s fund financial statements provides more detailed information about the District’s most significant funds – not the District as a whole. The funds shown on the Fund Financial Statements are considered major funds because of the size and activity of the funds in relation to all of the funds. The District has three kinds of funds:

1. Governmental funds – Most of the District’s basic services are included in governmental funds, which focus on (1) how cash and other financial assets that can readily be converted to cash flow in and out and (2) the balances left at year-end that are available for spending. Consequently, the governmental fund statements provide a detailed short-term view that helps you determine whether there are more or fewer financial resources that can be spent in the near future to finance the District’s programs. 2. Proprietary funds – Services for which the District charges customers a fee are generally reported in proprietary funds. Proprietary funds provide both long and short-term financial information. 3. Fiduciary funds – The District is the trustee, or fiduciary, for certain funds. The District is responsible for ensuring that the assets reported in these funds are used for their intended purposes. All of the District’s fiduciary activities are reported in a separate statement of fiduciary net assets and a statement of changes in fiduciary net assets.

Governmental Fund Types 1. General Fund – This is the District’s primary operating fund. It is established to account for resources used in accomplishing the core mission of the District – educating students so that they are equipped to excel in today’s environment. All revenues and expenditures not required to be accounted for in other funds are included here. This fund is budgeted and must be approved by the Board of Trustees. Any fund balances are considered resources available for current operations. Fund balances may be appropriated by the Board of Trustees for any lawful purpose. 2. Special Revenue Funds – The District accounts for resources restricted to, or designated for, specific purposes by the District or a grantor in a special revenue fund. Most Federal and some State financial assistance are accounted for in these funds. Sometimes unused balances must be returned to the grantor at the close of specified project periods. 3. Debt Service Funds - This fund is established to account for payment of principal and interest on long-term general obligation debt and other long-term debts for which a tax has been dedicated. This is a budgeted fund and must be approved by the Board of Trustees. A separate bank account is maintained for this fund. Any unused sinking fund balances are transferred to the General Fund after all of the related debt obligations have been met. 4. Capital Projects Funds - This fund is established to account for proceeds, on the modified accrual basis, from the sale of bonds and other resources to be used for Board authorized acquisition, construction, or renovation, as well as, furnishing and equipping of major capital facilities. Upon completion of a project, any unused bond proceeds are transferred to the Debt Service Fund and are used to retire related bond principal.

Other Sources and Uses of Funds Throughout the presentation of the District’s financial statements, the reader will see revenue and expenditures summarized as Other Sources and Uses of Funds. This category of revenues and expenses are placed here because they do not fit into our routine revenue and expenditure categories. This includes revenues from the sale of bond issues as a source of funds, and the District’s transfer of funds from the General Fund to the Capital Projects Fund for use in ongoing large capital projects.

61 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2008 Revenues: Local Revenue 211,931,434 223,307,861 224,727,748 195,847,238 207,976,333 State Revenue 42,796,507 45,629,225 66,561,323 110,879,526 119,652,747 Federal Revenue 9,197,133 14,872,547 14,359,645 9,640,920 9,964,694

Total Revenues 263,925,074 283,809,633 305,648,716 316,367,684 337,593,775

Expenditures: Instruction & Instruction Related 133,756,508 147,420,679 153,315,824 176,517,641 187,108,146 Instruction & School Leadership 13,944,424 14,367,871 15,537,591 17,651,944 19,426,034 Student Support Services 27,535,094 26,571,156 27,288,756 31,537,217 31,741,325 Administrative Support Services 6,318,991 6,731,832 7,248,738 9,028,968 6,930,479 Plant Maintenance & Operations 21,581,641 25,499,023 30,759,004 31,843,860 20,974,321 Security & Monitoring Services 1,430,206 1,919,057 2,042,964 2,499,008 2,531,127 Technology Services 3,893,194 3,967,154 3,984,284 4,119,785 4,872,086 Ancilliary Services 234,391 359,636 459,658 461,196 533,648 Debt Services 31,167,947 37,032,409 38,983,200 41,638,894 45,800,000 Capital Outlay 97,781,500 108,040,542 61,746,702 63,081,650 114,278,242 Intergovernmental Charges 785,067 1,247,212 1,607,377 1,977,100 14,293,695

Total Expenditures 338,428,963 373,156,571 342,974,098 380,357,264 448,489,103

Excess (Deficiency) of Revenues Over (Under) Expenditures (74,503,889) (89,346,938) (37,325,382) (63,989,580) (110,895,328)

Other Resources 124,318,684 40,312,046 54,842,404 80,738,894 55,600,000 Other Uses (14,269,730) (16,820,187) (17,116,355) - (3,600,000)

Total Other Resources and (Uses) 110,048,954 23,491,859 37,726,049 80,738,894 52,000,000

Other Resources Over Expenditures and Other Uses 35,545,065 (65,855,079) 400,667 16,749,314 (58,895,328)

Fund Balance - September 1 (Beginning) 196,821,722 232,366,787 167,370,498 163,790,891 179,416,574

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 232,366,787 167,370,498 163,790,891 179,416,574 120,521,246

62 FY 2008 – 2009 Budget Detailed Budget Analysis

Proprietary Fund Types 1. Enterprise Funds – The District’s activities for which outside users are charged a fee roughly equal to the cost of providing the goods and services of those activities are accounted for in an enterprise fund.

The District’s non-major Enterprise funds are the National Breakfast and Lunch Program and athletic concessions. The Food Service Fund is a budgeted fund and must be approved by the Board of Trustees

2. Internal Service Funds – Revenues and expenses related to services provided to organizations inside the District on a cost reimbursement basis are accounted for in an internal service fund. Internal service funds have been established to account for the District’s health, workers’ compensation and disability self-insurance plans.

Fiduciary Funds Agency Funds – These funds are used to report student activity funds and other resources held in a purely custodial capacity. Agency funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments.

Fiduciary funds are reported in the fiduciary fund financial statements. However, because their assets are held in a trustee or agency capacity and are therefore not available to support District programs, these funds are not included in the government-wide financial statements.

Budgetary Basis of Accounting The budgetary basis of accounting shall be consistently applied in budgeting, recording and reporting foundation school program (FSP) revenues in PEIMS information. Under the budgetary basis, earned and material FSP revenues that are collectible beyond 60 days are to be treated consistently for budgeting, recording, and reporting through PEIMS and for tax rollback rate calculation purposes.

Legal requirements for school district budgets are formulated by the State, the Texas Education Agency, and each local district.

The Board is legally required to adopt an appropriated budget on a basis consistent with GAAP for the general fund, debt service fund and food service fund (an enterprise fund). These are the only funds that require Board approval. The budgetary level of control for Board adopted budgets is at the Object level for revenues and the Function level for expenditures. Any transfer of funds that increases a revenue object or modifies an expenditure function must be approved on a monthly basis by the Board of Trustees. At a minimum, the District is required to present the original and the final amended budgets for revenues and expenditures compared to actual revenues and expenditures for these three funds. Budget amendments to these funds must be approved by the Board.

63 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Proprietary Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 24,133,322 25,696,133 33,306,646 32,465,000 37,500,000 State Revenue 48,388 50,471 53,726 55,000 60,000 Federal Revenue 2,880,228 2,948,198 3,182,966 3,705,000 4,010,000

Total Revenues 27,061,938 28,694,802 36,543,338 36,225,000 41,570,000

Expenditures: Payroll Costs 3,540,845 3,739,226 3,875,451 4,390,500 5,325,000 Professional & Contracted Services 1,918,108 2,059,928 2,587,891 2,560,000 1,905,000 Supplies & Materials 4,969,369 4,861,072 4,960,033 5,879,000 7,034,187 Other Operating Expenses 15,362,754 17,113,487 23,615,888 23,434,500 27,753,000 Capital Outlay - - 82,004 82,004 -

Total Expenditures 25,791,076 27,773,713 35,121,267 36,346,004 42,017,187

Excess (Deficiency) of Revenues Over (Under) Expenditures 1,270,862 921,089 1,422,071 (121,004) (447,187)

Other Resources 4,565,783 141,416 - - 100,000 Other Uses - - - - -

Total Other Resources and (Uses) 4,565,783 141,416 - - 100,000

Other Resources Over Expenditures and Other Uses 5,836,645 1,062,505 1,422,071 (121,004) (347,187)

Fund Balance - September 1 (Beginning) 4,733,096 6,042,385 11,596,178 12,172,329 12,133,329

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 6,042,385 11,596,177 13,159,665 12,133,329 11,786,142

64 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ General Fund

The General Fund is a governmental fund with budgetary control which is used to show transactions resulting from operations of on-going organizations and activities from a variety of revenue sources for which fund balance is controlled by and retained for the use of the local education agency. The general fund utilizes the modified accrual basis of accounting. To maintain separate revenue and expenditure accounts to assure the integrity of specific revenue purposes when required by law or rule, the general fund is to employ the classification defined below by the Texas Education Agency.

Fund 199 – General Fund – This classification must be used to account for funds in which the local governing board designates. The local governing board has wide discretion in their use as provided by law. This fund usually includes transactions as a result of revenues from local maintenance taxes, payments in lieu of taxes, foundation entitlements, State and County available and other Foundation School Program sources which are not identified on warrants for foundation entitlements. Any locally defined codes that are used at the local option are to be converted to Fund 199 for PEIMS reporting.

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance General Fund Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 177,839,502 181,178,625 176,707,325 142,463,000 155,366,000 State Revenue 37,950,997 40,829,688 62,306,964 106,295,000 114,233,000 Federal Revenue 618,151 1,172,496 659,594 542,000 545,000

Total Revenues 216,408,650 223,180,809 239,673,883 249,300,000 270,144,000

Expenditures: Instruction & Instruction Related 122,444,206 131,955,475 141,026,763 161,389,896 173,404,814 Instruction & School Leadership 13,352,037 13,723,970 14,948,808 17,171,874 18,844,349 Student Support Services 20,261,756 20,943,135 22,502,447 25,140,361 28,382,930 Administrative Support Services 6,262,404 6,531,246 7,048,551 7,947,779 6,741,479 Plant Maintenance & Operations 21,414,213 23,086,740 27,291,523 29,172,751 20,940,641 Security & Monitoring Services 1,429,206 1,782,456 1,800,443 2,162,488 2,527,542 Technology Services 3,873,218 3,939,337 3,984,284 4,119,785 4,872,086 Ancilliary Services 119,685 152,139 133,960 168,925 130,550 Debt Services 380,592 757,987 0 0 0 Capital Outlay 8,599,179 0 0 0 0 Intergovernmental Charges 784,698 1,247,212 1,607,377 1,977,100 14,293,695

Total Expenditures 198,921,194 204,119,697 220,344,156 249,250,959 270,138,086

Excess (Deficiency) of Revenues Over (Under) Expenditures 17,487,456 19,061,112 19,329,727 49,041 5,914

Other Resources 32,972 34,354 5,409 0 0 Other Uses (14,269,730) (16,820,187) (17,116,355) - -

Total Other Resources and (Uses) (14,236,758) (16,785,833) (17,110,946) - -

Other Resources Over Expenditures and 3,250,698 2,275,279 2,218,781 49,041 5,914

Fund Balance - September 1 (Beginning) 45,747,188 48,997,886 51,273,165 53,491,946 53,540,987

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 48,997,886 51,273,165 53,491,946 53,540,987 53,546,901

Reserved Fund Balance 8,352,533 9,619,176 9,730,411 9,730,411 9,730,411 Undesignated Fund Balance 40,645,353 41,653,989 43,761,535 43,810,576 43,816,490

65 FY 2008 – 2009 Budget Detailed Budget Analysis

General Fund Revenues This fund is budgeted at $270,144,000 and is established to account for resources financing the fundamental operations of the District. All revenues and expenditures that are not required to be accounted for in other funds are included here. Since this is a budgeted fund, any fund balances are considered resources available for current operations. Fund balances may be appropriated by the Board of Trustees to implement its responsibilities. The 2008–2009 General Fund budget is balanced and includes a very small increase in fund balance ($5,914).

Total revenues increased 8.4% from FY 2008 to FY 2009. This can primarily be attributed to the Districts enrollment gains from one year to the next and the added tax revenue from a four cent maintenance and operations tax rate increase. Clear Creek is experiencing rapid enrollment growth. Over the last five years enrollment has increased in excess of 3% per year. State funding models provide additional target revenue to meet enrollment growth but they do not provide funds to offset the impact of inflation. As a result, the District was forced to increase its maintenance and operations tax rate to meet rising costs.

Clear Creek Independent School District General Fund Analysis of Revenues Budget for the Year Ending August 31, 2009

General Fund Revenues Five Year History ($1,000's)

$545 FY 2009 $114,233 $155,366 $542 FY 2008 $106,295 $142,463 $660 FY 2007 $62,307 $176,707 $1,172 FY 2006 $40,830 $181,179 $618 FY 2005 $37,951 $177,840

$0 $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000

Local & Intermediate Sources State Program Revenues Federal Program Revenues

General Fund Revenues ($1,000's)

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues:

Local & Intermediate Sources$ 177,840 $ 181,179 $ 176,707 $ 142,463 $ 155,366 State Program Revenues$ 37,951 $ 40,830 $ 62,307 $ 106,295 $ 114,233 Federal Program Revenues$ 618 $ 1,172 $ 660 $ 542 $ 545

Total Revenues$ 216,409 $ 223,181 $ 239,674 $ 249,300 $ 270,144 66 FY 2008 – 2009 Budget Detailed Budget Analysis

Major Sources of Funds Local & Intermediate Sources of revenue increased 9.1% in FY 2009. This is due to a combination of growth in property value (over 9%) and a four cent tax rate increase in the maintenance and operations tax rate. Most of the property value growth is the result of new construction in the southern portion of the district. The four cent tax rate increase is the result of needed to staff new campuses and meet inflationary pressures in teacher salary, utilities and fuel.

State Program Revenues increased 7.5%. This is primarily due to projected enrollment growth of 1,000 students. The only way to receive additional state funding under the State of Texas School funding system is through enrollment gains. The Reform Legislation passed by the Texas Legislature in May of 2006 essentially tied all future increases in state funding to enrollment gains. Therefore, absent enrollment gains, state funding remains constant at the District’s 2006 per student funding level until changed by the legislature.

Currently, the District receives 57.5% of total General Fund revenue from Local and Intermediate Sources. This percentage is down from a high of more than 81% in FY 2006. This shows the dramatic impact of the Reform Legislation on local taxpayers.

General Fund Revenues by Source FY 2009

Other Revenue 3.2% Current Taxes 53.9% State TRS On-Behalf 5.2%

State Available School Fund 3.2%

State Foundation School Fund Delinquent Taxes 33.8% 0.6%

67 FY 2008 – 2009 Budget Detailed Budget Analysis

General Fund Expenditures Total General Fund spending increased 8.4% in FY 2009. Expenditure increases can be attributed to several major factors. First, the District must meet the staffing requirements inherent in a fast growth district. The District must hire additional teaching and operational staff to provide an exceptional education for these students. Second, the District opened the eleventh grade of our newest high school and provided start-up staffing for a new intermediate and two new elementary campuses opening in August of 2009. Third, the District provided a 3.5% across the board salary increase for all staff. Finally, operating expenses, driven by fuel and utility costs, have increased dramatically over last year.

Clear Creek Independent School District General Fund Analysis of Expenditures Budget for the Year Ending August 31, 2009

General Fund Expenditures by Function ($1,000's)

FY 2009

FY 2008

FY 2007

FY 2006

FY 2005

$0 $50,000 $100,000 $150,000 $200,000 $250,000

Instruction & Related Svcs Instructional & School Leadership Student Support Services Administrative Support Svcs Maintenance & Operations Technology & Security Svcs Capital Outlay Intergovernmental Charges

General Fund Expenditures ($1,000's)

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Expenditures:

Instruction & Related Svcs$ 122,444 $ 131,955 $ 141,027 $ 161,390 $ 173,405 Instructional & School Leadership 13,352 13,724 14,949 17,172 18,844 Student Support Services 20,262 20,943 22,502 25,140 28,383 Administrative Support Svcs 6,763 7,441 7,183 8,117 6,872 Maintenance & Operations 21,414 27,292 27,292 29,173 20,941 Technology & Security Svcs 5,302 5,722 5,785 6,282 7,400 Capital Outlay 8,599 - - - - Intergovernmental Charges 785 1,247 1,607 1,977 14,294

Total Expenditures$ 198,921 $ 208,324 $ 220,344 $ 249,251 $ 270,138

68 FY 2008 – 2009 Budget Detailed Budget Analysis

Major Uses of Funds The mission of a school district is to provide excellent educational opportunities. Clear Creek takes that mission very seriously. The District spends 64.2% of its General Fund budget on Instruction and Related Services. This compares favorably to the State General Fund Expenditures by Function Comptroller’s recommendation to FY 2009 spend at least 60% of the budget on direct classroom instruction. Clear Creek is also very efficient.

64.2% This is supported by its low level 80.00% of spending on administrative

60.00% support services (2.5%).

40.00% 7.0% 10.5% 7.8% There was a $12 million increase 2.5% 2.7% 5.3% 20.00% in Intergovernmental Charges this year. This was primarily due to 0.00% reclassifying the District’s utility contract ($10.8 million) from the Instruction & Related Instructional & School Leadership Plant Maintenance function to the Student Support Administrative Support Maintenance & Operations Technology & Security Payments to Fiscal Agent function Intergovernmental in the General Fund. The District entered into a new arrangement to purchase utilities through a neighboring school district which necessitated this change. The District also transferred the District’s appraisal district fees ($1.5 million) from the General Administration function to the Other Intergovernmental Charges function. This accounted for the remainder of the increase in this expenditure class.

The education of students is labor intensive. This is reflected in the large portion of the District's budget for payroll costs. The composition of the District's workforce is determined by staffing policies and guidelines approved by the Board of Trustees, on projected General Fund Expenditures by Object student enrollment, and on curriculum requirements. For the FY 2009 2008-2009 fiscal year, payroll costs are budgeted at $226,496,036 (83.8%) percent of Capital Outlay the General Fund’s current 0.4% Payroll Costs operating expenditures. 83.8% Other Operating Although payroll costs are our 7.1% largest expenditure, utility costs make up the next largest fixed Supplies & cost and are included in the Other Materials Operating expense category. 4.4% Contracted Therefore, between payroll and Services other fixed costs, over 91% of the 4.2% expenditures of the District are tied up in fixed expenditures. All Texas districts face the same issue. How to stretch flexible costs to meet growing facility maintenance and renovation needs.

69 FY 2008 – 2009 Budget Detailed Budget Analysis

General Fund – Fund Balance Clear Creek is located along the Texas Gulf Coast – a region that is susceptible to hurricanes and strong tropical storms. As a result, it is vital for the district to maintain a source of funds to cover emergencies. Clear Creek has two sources of funds to meet this contingency. Clear Creek ISD has designated a $2.5 million Disaster Recovery reserve in the General Fund. This is the Districts first line of defense in the event of a catastrophic event. The second line of defense is the District’s Undesignated Fund Balance in the General Fund. Several years ago, this fund dipped to historically low levels equal of about one month’s operating expenses. This was unacceptable and the Board of Trustees made increasing the District’s fund balance a priority over the last few years. As a result, the District now has a combined designated disaster reserve and undesignated reserve of more than two months of current operating expenses.

Clear Creek experienced its first direct hit by a major hurricane since Hurricane Alicia (1983) with the landfall of Hurricane Ike on September 12th and 13th 2008. Initial estimates place losses near $20 million. However, insurance proceeds and expected Federal Emergency Management (FEMA) reimbursements place our projected out of pocket expenses at close to $2.2 million. The District’s foresight in setting a $2.5 million Disaster Recovery reserve has provided it the ability to fund this major natural disaster without significant impact on the General Fund.

Clear Creek Independent School District General Fund Analysis of Fund Balance Budget for the Year Ending August 31, 2009

General Fund - Fund Balance Five Year History ($1,000's)

$50,000 $43,762 $43,811 $43,816 $40,645 $41,654 $40,000

$30,000

$20,000 8,353 9,619 9,730 9,730 9,730 $10,000

$0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Undesignated Fund Balance Designated Fund Balance

General Fund - Fund Balance ($1,000's) Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Undesignated Fund Balance$ 40,645 $ 41,654 $ 43,762 $ 43,811 $ 43,816

Designated Fund Balance 8,353 9,619 9,730 9,730 9,730

Total Fund Balance$ 48,998 $ 51,273 $ 53,492 $ 53,541 $ 53,547

70 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Special Revenue Funds

Special Revenue Funds are governmental funds used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds utilize the modified accrual basis of accounting. Activities included within these funds are as follows:

Note: This is not an exhaustive list of special revenue funds. However, it does represent most of the key funds utilized by the District.

Fund 204 - ESEA, Title IV, Part A Safe and Drug Free Schools & Communities Act – These funds are to be used to develop age-appropriate comprehensive violence and drug/alcohol education prevention programs.

Fund 211 - ESEA, Title I, Part A Improving Basic Programs – Funds allocated to local educational agencies to enable schools to provide opportunities for children served to acquire the knowledge and skills contained in the challenging State content standards and to meet the challenging State performance standards developed for all children.

Fund 224 - IDEA B, Formula – Funds granted to operate educational programs for children with disabilities. This fund classification includes capacity building and improvement.

Fund 225 - IDEA B, Preschool – Funds granted for preschool children with disabilities.

Fund 244 - Vocational Regular Basic Grant – Funds granted to provide career and technology education to develop new and/or improve career and technology education programs for paid and unpaid employment. Full participation in basic grant is from individuals who are members of special populations, at 1) a limited number of campuses (sites) or 2) a limited number of program areas.

Fund 255 - Title II, Part A: Teacher and Principal Training and Recruiting - Funds granted to (1) Increase student academic achievement through improving teacher and principal quality and increasing the number of highly qualified teachers in classrooms and highly qualified principals and assistant principals in schools, and (2) hold local education agencies and schools accountable for improving student academic achievement.

Fund 262 - Enhancing Education Through Technology – Funds granted for the implementation and support of a comprehensive system that effectively uses technology in elementary and secondary schools to improve student academic achievement

Fund 269 - Title V, Part A - Innovative Programs – Funds granted to implement or expand innovative assistance programs to improve student, teacher, and school performance through a variety of local reform and improvement activities.

Fund 411 - Technology Allotment – Funds awarded to school districts to purchase technological software or equipment that contributes to student learning, or to pay for training for educational personnel involved in the use of these materials.

Fund 428 – High School Allotment - Funds used for an academically intense and high-quality program of study that provides students with the information and skills necessary to successfully enroll in entry-level courses at an institution of higher education without the need for developmental course work.

Fund 461 – Campus Activity – Funds received from campus based initiatives.

71 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Special Revenue Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 3,799,375 4,395,587 4,686,277 4,193,918 3,433,333 State Revenue 3,991,781 4,254,359 4,584,526 5,575,044 5,419,747 Federal Revenue 8,578,982 13,700,051 9,098,920 7,477,130 9,419,694

Total Revenues 16,370,138 22,349,997 18,369,723 17,246,092 18,272,775

Expenditures: Instruction & Instruction Related 11,312,302 15,465,204 12,270,485 12,241,697 13,703,332 Instruction & School Leadership 592,387 643,901 588,783 480,070 581,685 Student Support Services 4,100,528 5,518,429 4,591,534 3,994,313 3,358,395 Administrative Support Services 26,604 189,743 168,356 219,400 189,000 Plant Maintenance & Operations 167,428 285,268 650,465 18,340 33,680 Security & Monitoring Services 1,000 136,601 - - 3,585 Technology Services 19,976 27,817 - - - Ancilliary Services 114,706 207,497 325,698 292,271 403,098 Debt Services - - - - - Capital Outlay 37,050 - - - - Intergovernmental Charges 369 - - - - - Total Expenditures 16,372,350 22,474,460 18,595,321 17,246,092 18,272,775

Excess (Deficiency) of Revenues Over (Under) Expenditures (2,212) (124,463) (225,598) (0) 0 - Other Resources 269,730 253,267 116,355 - - Other Uses - - - - -

Total Other Resources and (Uses) 269,730 253,267 116,355 - -

Other Resources Over Expenditures and Other Uses 267,518 128,804 (109,243) (0) 0

Fund Balance - September 1 (Beginning) 125,791 393,309 522,113 412,870 412,870

Increase (Decrease) in Fund Balance - - - - - Fund Balance - August 31 (Ending) 393,309 522,113 412,870 412,870 412,870

72 FY 2008 – 2009 Budget Detailed Budget Analysis

Special Revenue Funds Revenues Clear Creek’s Special Revenue Funds increased by six percent or $1.0 million in FY 2009. This is primarily due to an increase in federal funding. Title I funding for children of poverty increased by almost $1.4 million while Title II (Teacher and Principal Training and Recruitment) and Title III (English Language Acquisition) funding increased a combined $140,000. In addition, Individuals with Disabilities in Education Act (IDEA), Part B formula funding increased $55,000.

Offsetting these funding increases were major reductions in several special revenue funds. The District completed the third and final year of the Smaller Learning Community Grant. This reduced revenues by $145,000. The State substantially reduced funding for the High School Completion and Success Initiative as it has shifted its focus on the High School Allotment program which provides more than $2.9 million for high school initiatives. The largest single reduction was in Campus Activity Funds. This fund dropped by $900,000 from the previous year. This is entirely due to the completion of the District’s beverage vending contract with a national vendor. The beverage provider’s contract called for annual contributions to each campus in addition to commissions on beverage sales. These annual payments ceased when the District began self-managing the contract in 2008.

Clear Creek Independent School District Special Revenue Funds Analysis of Revenues Budget for the Year Ending August 31, 2009

SpecialGeneral Revenue Fund Funds Revenues - Revenues Five ($1,000's)Year History ($1,000's) $16,000 $13,700 $14,000 $12,000 $9,420 $10,000 $17,500$8,579 $9,099 $7,477 $8,000 $5,575 $5,420 $6,000 $15,000 $3,992 $4,254 $4,585 $4,000 $12,500 $2,000 $4,396 $4,686 $4,194 $3,799 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 $3,433 $- FY 2005 FY 2006Fiscal FY 2007 Year FY 2008 FY 2009 Local & Intermediate Sources State Program Revenues Federal Program Revenues Local & Intermediate Sources State Program Revenues Federal Program Revenues

Special Revenue Funds - Revenues ($1,000's)

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues:

Local & Intermediate Sources$ 3,799 $ 4,396 $ 4,686 $ 4,194 $ 3,433 State Program Revenues$ 3,992 $ 4,254 $ 4,585 $ 5,575 $ 5,420 Federal Program Revenues$ 8,579 $ 13,700 $ 9,099 $ 7,477 $ 9,420

Total Revenues$ 16,370 $ 22,350 $ 18,370 $ 17,246 $ 18,273

73 FY 2008 – 2009 Budget Detailed Budget Analysis

Special Revenue Fund Expenditures Special Revenue Fund expenditures increased in tandem with revenues. The largest increase was in Instruction and Related Services ($1.4 million or 11.9%). This is due to increases in federal funding highlighted above. Title I expenditures increased by $1.3 million. These funds are used to assist in the education of children of poverty. The District uses a majority of its Title I funding to provide additional instructional support (teachers, aides, etc.) for campuses in areas of high poverty.

It is important to note that 75% of all expenditures in this fund category are found in the Instruction & Related category. This shows Clear Creek’s commitment to direct its budget funds to the classroom.

Clear Creek Independent School District Special Revenue Funds Analysis of Expenditures Budget for the Year Ending August 31, 2009

Special Revenue Fund Expenditures Five Year History ($1,000's)

FY 2009

FY 2008

FY 2007

FY 2006

FY 2005

$0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 $20,000 $22,500 Instruction & Related Svcs Student Support Services Instructional & School Leadership Administrative Support Svcs Maintenance & Operations Technology & Security Svcs Capital Outlay Intergovernmental Charges

Special Revenue Funds - Expenditures ($1,000's)

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Expenditures:

Instruction & Related Svcs$ 11,312 $ 15,465 $ 12,270 $ 12,242 $ 13,703 Instructional & School Leadership$ 592 $ 644 $ 589 $ 480 $ 582 Student Support Services$ 4,101 $ 5,518 $ 4,592 $ 3,994 $ 3,358 Administrative Support Svcs$ 27 $ 190 $ 168 $ 219 $ 189 Maintenance & Operations$ 167 $ 285 $ 650 $ 18 $ 34 Technology & Security Svcs$ 1 $ 137 $ - $ - $ 4 Capital Outlay$ 20 $ 28 $ - $ - $ - Intergovernmental Charges$ 115 $ 207 $ 326 $ 292 $ 403

Total Expenditures$ 16,335 $ 22,474 $ 18,595 $ 17,246 $ 18,273

74 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Debt Service Funds

Debt Service Funds A debt service fund is a governmental fund, with budgetary control, that must be used to account for general long-term debt principal and interest for debt issues and other long-term debts for which a tax has been dedicated. A separate bank account must be kept for this fund. Principal and interest payments for operating indebtedness including warrants, notes, and short-term lease-purchase agreements, are to be made from the fund for which the debt was incurred. This fund utilizes the modified accrual basis of accounting.

Tax Supported Debt Limitation Chapter 45 of the Texas Education Code, as amended, requires a district to demonstrate to the Texas Attorney General that it has the prospective ability to pay debt service on a proposed issue of bonds, together with debt service on other outstanding new debt of the district, from a tax levied at a rate of $0.50 per $100 of assessed valuation before bonds may be issued. In demonstrating the ability to pay debt service at a rate of $0.50, a district may take into account State allotments to the district which effectively reduces the district’s local share of debt service. Once the prospective ability to pay such tax has been shown and the bonds are issued, a district may levy an unlimited tax to pay debt service. The District has $626,425,000 in outstanding bonds. The District’s total current debt service requirement is $1,046,799,755 which is covered with a $0.32 cent tax rate. At a $0.50 cent tax rate ceiling, the District’s total debt ceiling is $1,650,000,000. Looking ahead ten years, the District will be able to meet its long range facility requirements and stay well below the 50 cent tax limitation.

Debt Issues The District has issued over $381 million in new debt since February 2004. A bond election was held on February 7, 2004 which included $264 million in capital spending. All $264 million in authorized debt was issued over this three year bond program. This program was split into five basic categories: New schools $118.9 million; campus additions $27.6 million; capital improvements $63.5 million, land acquisition $29.0 million and technology $25 million. The District is finalizing the projects funded with this bond program.

Debt Policy Clear Creek has a relatively modest debt service tax rate of 32 cents. The debt tax rate has increased seven and a half (7.5) cents over the last five years in order to pay for recent taxpayer approved bond programs.

Debt service tax rates have remained low for several reasons. First, the District’s tax base has been growing in excess of 6% for the last five years, growing by more than 9% last year. This increasing tax base has provided additional tax revenue. Also, interest rates have been at historicly low levels. This has allowed the District to keep interest payments low as well. Finally, the District has been able to refund almost $150 million in high interest bonds and replace them with lower interest bonds.

The Debt Service Fund fund balance is adequate and in line with the District’s goal to have at least ten percent (10%) of the annual debt service payment in undesignated fund balance.

75 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Debt Service Fund Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 27,177,956 32,739,188 38,793,335 43,800,000 46,400,000 State Revenue 853,729 807,756 - - - Federal Revenue - - - - -

Total Revenues 28,031,685 33,546,944 38,793,335 43,800,000 46,400,000

Expenditures: Instruction & Instruction Related - - - - - Instruction & School Leadership - - - - - Student Support Services - - - - - Administrative Support Services - - - - - Plant Maintenance & Operations - - - - - Security & Monitoring Services - - - - - Technology Services - - - - - Ancilliary Services - - - - - Debt Services 30,105,712 36,157,778 38,578,792 40,900,000 45,800,000 Capital Outlay - - - - - Intergovernmental Charges - - - - -

Total Expenditures 30,105,712 36,157,778 38,578,792 40,900,000 45,800,000

Excess (Deficiency) of Revenues Over (Under) Expenditures (2,074,027) (2,610,834) 214,543 2,900,000 600,000

Other Resources - - - - - Other Uses - - - - -

Total Other Resources and (Uses) - - - - - (y) Other Resources Over Expenditures and Other Uses (2,074,027) (2,610,834) 214,543 2,900,000 600,000

Fund Balance - September 1 (Beginning) 8,696,155 6,622,128 4,011,294 4,225,837 7,125,837

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 6,622,128 4,011,294 4,225,837 7,125,837 7,725,837

76 FY 2008 – 2009 Budget Detailed Budget Analysis

Debt Service Fund Revenues Debt Service Fund revenues have increased by 16.4% per year since FY 2005. This is due to a combination of factors. First, the District has experienced a growth rate in appraised values of more than 6% over the same time period. Second, the District sold $264 million in new bonds that were authorized by voters in 2004. The Debt Service tax rate was increased by 5.5 cents over the same period of time as a result of these bond sales. Finally, the District held a $183 million bond election in May of 2007 which was approved by a record 72% of voters. This bond election added two cents to the tax rate in FY 2008. State revenues dropped to zero in FY 2007. This is a direct result of the District’s increasing property wealth per student. As property wealth per student increases, state funding decreases.

Clear Creek Independent School District Debt Service Fund Analysis of Revenues Budget for the Year Ending August 31, 2009

Debt Service Fund Revenues ($1,000's)

- FY 2009 $46,400 - FY 2008 $43,800 $- FY 2007 $38,793 $808 FY 2006 $32,739 $854 FY 2005 $27,178

$0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000

Local & Intermediate Sources State Program Revenues Federal Program Revenues

Debt Service Fund Revenues ($1,000's)

Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues:

Local & Intermediate Sources$ 27,178 $ 32,739 $ 38,793 $ 43,800 $ 46,400 State Program Revenues 854 808 - - - Federal Program Revenues - - - - -

Total Revenues$ 28,032 $ 33,547 $ 38,793 $ 43,800 $ 46,400

77 FY 2008 – 2009 Budget Detailed Budget Analysis

Debt Service Fund Expenditures Debt Service Fund expenditures have increased 13.0% per year over the last four years. This is due to the issuance and sale of new bonds which were authorized by voters in 2004 and 2007. Voters authorized the issuance of $264 million in bonds in February of 2004. These bonds have been sold and capital projects utilizing these funds are near completion. Voters authorized the issuance of an additional $183 million in bonds in May of 2007. Clear Creek sold $37.1 million of these bonds in July and another $80 million in April of 2008.

In order to pay the interest and principal on these bond sales, the Debt Service tax rate was increased by nine (7.5) cents over the same period of time.

Clear Creek Independent School District Debt Service Fund Analysis of Expenditures Budget for the Year Ending August 31, 2009

Debt Service Fund Expenditures ($1,000's)

$55,000 $50,000 $45,800 $45,000 $40,900 $38,579 $40,000 $36,158 $35,000 $30,106 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Debt Service Fund Expenditures ($1,000's)

Budget Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Expenditures:

Instruction & Related Svcs$ - $ - $ - $ - $ - Instructional & School Leadership - - - - - Student Support Services - - - - - Administrative Support Svcs 30,106 36,158 38,579 40,900 45,800 Maintenance & Operations - - - - - Technology & Security Svcs - - - - - Capital Outlay - - - - -

Intergovernmental Charges - - - - -

Total Expenditures$ 30,106 $ 36,158 $ 38,579 $ 40,900 $ 45,800

78 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Aggregate Debt Service Budget for the Year Ending August 31, 2009

Year Ending August 31 Interest Principal Total Debt

2009 33,012,418.25 12,793,894.40 45,806,312.65 2010 33,144,582.11 12,267,216.65 45,411,798.76 2011 32,571,671.76 13,317,008.25 45,888,680.01 2012 27,744,311.11 19,280,406.40 47,024,717.51 2013 26,879,677.76 20,254,033.50 47,133,711.26 2014 25,692,886.26 21,520,000.00 47,212,886.26 2015 24,607,986.26 22,840,000.00 47,447,986.26 2016 23,478,548.76 23,980,000.00 47,458,548.76 2017 22,281,851.26 25,160,000.00 47,441,851.26 2018 21,002,408.76 26,425,000.00 47,427,408.76 2019 19,661,631.88 27,755,000.00 47,416,631.88 2020 18,261,526.25 29,140,000.00 47,401,526.25 2021 16,782,820.00 30,605,000.00 47,387,820.00 2022 15,289,050.00 32,080,000.00 47,369,050.00 2023 13,880,987.55 28,040,000.00 41,920,987.55 2024 12,498,137.50 29,385,000.00 41,883,137.50 2025 11,048,350.00 30,800,000.00 41,848,350.00 2026 9,557,325.00 32,235,000.00 41,792,325.00 2027 8,076,700.00 33,675,000.00 41,751,700.00 2028 6,579,925.00 35,120,000.00 41,699,925.00 2029 5,093,150.00 36,545,000.00 41,638,150.00 2030 3,864,000.00 20,300,000.00 24,164,000.00 2031 2,823,750.00 21,310,000.00 24,133,750.00 2032 1,732,000.00 22,360,000.00 24,092,000.00 2033 586,500.00 23,460,000.00 24,046,500.00 Total 416,152,195.47 630,647,559.20 1,046,799,754.67

Average Annual Requirements (2009-2033) $41,871,990 (a) Maximum Annual Requirement (2019) $47,458,549 (a) ______(a) The District currently has adjustable rate bonds outstanding. The interest rates on such adjustable rate bonds may adjust periodically. Accordingly, the projected debt service payable on the District’s debt is estimated and remains subject to change.

79 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Estimated Overlapping Debt Budget for the Year Ending August 31, 2009

Debt as of Overlapping Taxing Jurisdiction March 1, 2008 Percent Amount Baybrook MUD 1 $ 14,610,000 100.00% $ 14,610,000 Brazoria Co. MUD 18 29,870,000 48.68% 14,540,716 Clear Brook City MUD 55,840,000 44.68% 24,949,312 Clear Lake City Water Authority 60,035,000 79.45% 47,697,808 Clear Lake City Water Authority – 75 1,685,000 0.50% 8,425 Friendswood, City of 17,745,000 24.36% 4,322,682 Galveston County 232,003,422 23.14% 53,685,592 Galveston Co. MUD 2 5,860,000 100.00% 5,860,000 Galveston Co. MUD 3 6,610,000 100.00% 6,610,000 Galveston Co. MUD 6 19,925,000 100.00% 19,925,000 Galveston Co. MUD 13 8,965,000 100.00% 8,965,000 Galveston Co. MUD 39 17,160,000 100.00% 17,160,000 Galveston Co. MUD 43 7,150,000 100.00% 7,150,000 Galveston County WC&ID 12 16,520,000 100.00% 16,520,000 Harris County 1,609,343,644 3.79% 60,994,124 Harris County Flood Control District 111,929,698 3.79% 4,242,136 Harris County MUD 55 19,185,000 100.00% 19,185,000 Harris County MUD 373 5,420,000 100.00% 5,420,000 Harris County WC&ID 156 4,640,000 100.00% 4,640,000 Houston, City of 2,184,822,550 2.43% 53,091,188 Kemah, City of 190,000 100.00% 190,000 League City, City of 76,195,000 88.20% 67,203,990 Nassau Bay, City of 2,385,944 100.00% 2,385,944 Pasadena, City of 134,995,000 13.25% 17,886,838 Port of Houston Authority 343,965,000 3.79% 13,036,274 Seabrook, City of 19,495,000 100.00% 19,495,000 South Shore Harbour MUD 2 6,310,000 100.00% 6,310,000 South Shore Harbour MUD 3 3,225,000 100.00% 3,225,000 South Shore Harbour MUD 6 7,655,000 100.00% 7,655,000 South Shore Harbour MUD 7 18,155,000 100.00% 18,155,000 Tara Glenn MUD 3,690,000 100.00% 3,690,000 Taylor Lake Village 125,000 100.00% 125,000 Texas City, City 39,065,000 0.11% 42,972 Webster, City of 20,690,998 100.00% 20,690,998 -

TOTAL ESTIMATED OVERLAPPING DEBT$ 569,668,996

The District 626,425,000

TOTAL DIRECT & ESTIMATED OVERLAPPING DEBT $ 1,196,093,996

80 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Capital Projects Funds

Capital Projects Funds A Capital Projects Fund is a governmental fund that must be used to account, on a project basis, for projects financed by the proceeds from bond issues, or for capital projects otherwise mandated to be accounted for in this fund. The Capital Projects Fund utilizes the modified accrual basis of accounting.

Capital Projects History The District is experiencing tremendous enrollment growth that is creating the need for additional classroom space. From time to time, the District asks taxpayers to approve bond issues to provide for this growth. Taxpayers have approved over $609 million in bond programs over the last seven years to help the District manage enrollment growth.

In 2000 the District passed a $162 million bond issue which added three elementary schools, two intermediate schools, and land for future growth ($88.1 million), capital improvements to numerous campuses ($58.6 million), and technology ($15.3 million).

In 2004 the District passed a $264 million dollar bond issue as part of a three-year plan to accomplish the goals and objectives described in the District Strategic Plan. The focus of this bond issue was again on new campuses, land for growth, capital improvements and technology.

In 2007 the District passed a $183 million bond issue to further meet the needs of enrollment growth. The focus of this bond issue was on the construction of new educational facilities. This bond included a new 2500 student high school, a 1200 student intermediate school, two 900 student elementary schools and the conversion of two high school ninth grade centers to intermediate campuses. In addition, the District will purchase $6 million in buses, add science classrooms to our high schools, and make some major roof and air conditioning replacements.

Operating Costs Due to the tremendous enrollment growth over the last five plus years, the vast majority of bond proceeds have been used to address growth needs. New classrooms and new facilities have been a top priority.

New educational facilities drive increases in personnel and operational costs. The major cost drivers for new facilities are utilities, grounds maintenance, equipment, and campus administrative, teaching and support personnel, and property and casualty insurance. Utilities are estimated at about $1.72 per square foot for the FY 2008-2009 budget. This is almost two times more than we have budgeted in prior years and is primarily due to the jump in oil prices over the last twelve months. This large swing in the oil and gas commodity market has created additional pressure on District operations. When the District opened its new 465,000 square foot high school last year, the utility budget came in at almost $800,000. In addition, this campus created increases of $12,000 for grounds maintenance, and $25,000 for equipment & supplies. Property and casualty insurance has skyrocketed in the last three years. As a result, insuring a new high school costs in excess of $300,000.

Staffing costs are projected through the District’s staffing standards which are tied in to the District’s five year staffing plan. The District added 94 new positions to the budget last year to open the new high school at a cost of $3.2 million. This staffing only covered grades nine and ten. The District added the eleventh grade this year and it resulted in an additional 36.5 new positions at a cost of $1.6 million.

81 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Capital Project Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 3,114,601 5,590,673 4,831,501 4,897,961 2,777,000 State Revenue - 0 0 0 0 Federal Revenue - 0 0 0 0

Total Revenues 3,114,601 5,590,673 4,831,501 4,897,961 2,777,000

Expenditures: Instruction & Instruction Related - 0 18,576 2,886,048 0 Instruction & School Leadership - 0 0 0 0 Student Support Services 3,172,810 109,592 194,775 2,402,543 0 Administrative Support Services 29,983 10,843 31,831 861,789 0 Plant Maintenance & Operations - 2,127,015 2,817,016 2,652,769 0 Security & Monitoring Services - 0 242,521 336,520 0 Technology Services - 0 0 0 0 Ancilliary Services - 0 0 0 0 Debt Services 681,643 116,644 404,408 738,894 0 Capital Outlay 89,145,271 108,040,542 61,746,702 63,081,650 114,278,242 Intergovernmental Charges - 0 0 0 0

Total Expenditures 93,029,707 110,404,636 65,455,829 72,960,213 114,278,242

Excess (Deficiency) of Revenues Over (Under) Expenditures (89,915,106) (104,813,963) (60,624,328) (68,062,252) (111,501,242)

Other Resources 124,015,982 40,024,425 54,720,640 80,738,894 55,600,000 Other (Uses) - 0 0 0 (3,600,000)

Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Uses 124,015,982 40,024,425 54,720,640 80,738,894 52,000,000

Net Change in Fund Balance 34,100,876 (64,789,538) (5,903,688) 12,676,642 (59,501,242)

Fund Balance - September 1 (Beginning) 142,252,588 176,353,464 111,563,926 105,660,238 118,336,880

Increase (Decrease) in Fund Balance - - - - - Fund Balance - August 31 (Ending) 176,353,464 111,563,926 105,660,238 118,336,880 58,835,638

82 FY 2008 – 2009 Budget Detailed Budget Analysis

Capital Projects Funds Revenues Interest rates have been favorable over the last few years which have allowed the District to earn on average over $4.6 million per year on investments. The District invests bond proceeds as they are received and interest revenue is booked into the capital projects funds accounts. The District is estimating reduced interest revenue in 2009 due to a combination of low interest rates and a increased spending on existing bond programs. As we close out major bond program projects, less money is available to invest. Districts can use this revenue to either fund additional capital projects or refund bonds. Since Clear Creek has many capital needs, the Board allocated interest revenue for additional capital projects.

Capital Project Funds Revenue ($1,000's)

FY 2009

FY 2008

FY 2007

FY 2006

FY 2005

$0 $500 $1,000 $1,500$2,000$2,500 $3,000$3,500$4,000 $4,500$5,000$5,500

Local & Intermediate Sources State Program Revenues Federal Program Revenues

Long Range Facilities Planning Clear Creek has also formed a Long Range Facilities Master Planning Committee to assess growth and recommend facility options to the Board of Trustees. This dynamic group of 60 people includes community members, business leaders and district staff. As a result of their work, the District now has a road map of district facility needs for the next ten years.

Long Range Financial Planning To meet the financial needs of a fast growth district, staff prepares an annual five year financial plan that includes the facility assumptions developed by the facilities committee. The financial plan includes staffing and operational increases for new facilities. Staff also projects the long range impact of bond issues to fund facility growth. In their totality, these plans truly give the District a facility and financial road map to meet the challenge of growth.

These plans are included in the Informational Section of this document.

83 FY 2008 – 2009 Budget Detailed Budget Analysis

Current Voter Approved Bond Programs Voter authorized bond programs have given the District the ability to meet enrollment growth over the last eight years. We have provided a listing of the projects in bond programs that are currently under way below. Projects in the 2004 Bond Program are virtually complete with only minor project closeout issues remaining to be finalized.

Capital Projects – 2004 Bond Issue

Description Projects Funding New Schools New High School (1) $118,899,000 Clear Creek High School Re-build New Elementary Schools (2)

Campus Additions High Schools - Band Halls, Dance Studios 27,565,000 Intermediate Schools – Band Halls, Choir Rooms Elementary Schools – Gymnasiums & Classrooms New Agriculture Facility

Capital Improvements Energy Systems, Roofs, Security Surveillance, 63,523,000 School Bus Replacement, Centralized Phone System, Network Infrastructure & Cabling, Future Site Infrastructure

Land Acquisition Future High School Site, Intermediate Sites (2), 29,064,000 and Elementary Sites (5), Future Expansion Site

Student Computers, Technology & Classroom Technology, Student Computers and 24,949,000 Financing Projection Devices, Science/Math/Library Peripherals, and Distance Learning

Total $264,000,000

Capital Projects – 2007 Bond Issue

Description Projects Funding New Schools New High School (1) $154,167,000 New Intermediate School (1) New Elementary Schools (2)

Campus Conversions Convert 9th Grade Centers to Intermediate Schools (2) 7,629,000

Capital Improvements & Roofs, Major Mechanical Systems, Security Systems, 21,329,000 Replacements School Bus Replacement

Total $183,125,000

84 FY 2008 – 2009 Budget Detailed Budget Analysis

Recently Completed and In-Progress Capital Projects Below is a list of recently completed and in-progress capital projects from bond programs and the capital replacement fund.

Recently Completed Major Capital Projects Total Project Project Description Funding Source Expenditures New Schools or Facilities Clear Creek High School Re-build Bonds 2000 & 2004 $ 39,695,790 Elementary # 23 - Robinson Bonds 2004 13,004,199 Elementary # 24 - Gilmore 13,989,957 Clear Springs High School 65,088,809 Agricultural Facility 1,723,795 Elementary Gymnasiums 11,099,120 Clear Brook Practice Gym & Dance Studio 2,591,357 Seabrook Intermediate Band Hall 1,232,260 Clear Lake HS Band and Orchestra Hall 2,408,858 Clear Lake Intermediate Choir Room 1,779,309 Landolt Elementary Classroom Additions 1,611,699 Central Support Facility Capital Projects Fund 10,744,229 Capital Improvements & District-Wide Lighting at Tracks/Tennis Courts Bonds 2004 3,187,532 Additions Athletic Field Upgrades 5,336,980 Air Conditioning/Heating Upgrades 2,781,255 District-Wide Fencing 1,064,364 Parking Lot and Sidewalk Additions 1,722,222 Renovate Existing Elementary Gymnasiums 2,367,557 Replace District Roofs 8,662,766 Various District-Wide Capital Improvements 1,789,434 Secure Entrances at Elementary Campuses Capital Projects Fund 255,556 Technology Projects • Wireless Computer Workstations 13,569,855 • Network Infrastructure 5,375,842 • Centralized Phone System 3,925,932 • Software Licensing 3,274,203 • Network Cabling 2,978,842 • Classroom Projection Devices 2,596,903 • Computer Peripherals 1,281,666 • Distance Learning 1,463,091 • Various District-Wide Technology Projects 1,464,043

In-Progress Capital Projects Total Project Description Funding Source Expenditures New Schools or Facilities High School # 5 Bonds 2007 $ 13,340,883 Intermediate # 10 6,161,838 Elementary # 25 7,118,500 Elementary # 26 4,426,722

Capital Improvements & Clear Lake Intermediate Roof Bonds 2007 885,101 Additions Creekside Intermediate Roof 672,131 Ross Elementary Roof 610,133 Keyless Entry & Cameras 317,559 General Maintenance General Maintenance & Repair Capital Plan 1,246,854 Roof Maintenance 150,000 Technology 4,434,006 Communications & Cameras 755,328 CCHS Agriculture Center 364,000 Relocate portable buildings 500,000 Bus Purchases 1,821,040

85 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Projected Capital Improvement Plan Projects

2010 2011 2012

Project Approved Approved Approved Project Description Number Budget Budget Budget

ClearPlan 2020 Gen. Maintenance & Repairs (carpet funded from CP-004 1,246,854 1,442,466 1,637,019 Bond 2000) Roof Maintenance (funded from Bond 2000) CP-005 150,000 150,000 - Subtotal - ClearPlan 2020 1,396,854 1,592,466 1,637,019 Technology Administrative Technology Growth T-001 649,006 489,332 1,138,338 Administrative Technology Life Cycles T-002 - - 250,000 Subtotal - Technology 649,006 489,332 1,388,338 Safe Schools Communications and Cameras SS-003 755,328 711,880 711,880 Subtotal - Safe Schools 755,328 711,880 711,880 Facilities CCHS - Renovate Ag Center F-009 364,000 - CCHS - Convert Cafeteria back to Classrooms F-010 - 84,000 CCHS - Modification of gym and weight rooms F-011 - 480,000 Relocate portable buildings (see Note 1) F-013 500,000 - Additional roofing projects (see Note 1) F-020 - - 1,900,000 Subtotal - Facilities 864,000 564,000 1,900,000 Instruction Expanded Early Childhood Program CO-003 10,320 - - K-5 Elementary Spanish Program - cancelled CO-004 - - - CATE/CASE - PLTW Program Needs (various funding) CO-005A 54,959 57,516

Integrated Learning Portal & Curriculum Management EM-001 190,400 300,000 Solution Elementary Guidance and Counseling Plan EM-003 13,760 12,600 Instructional Technology Growth (see Note 4) EM-004 335,000 335,000 335,000 Instructional Technology Life Cycles (see Note 2 and 4) EM-005 3,450,000 3,301,057 3,301,057

Subtotal - Instructional Proposals (no Staffing Costs) 4,054,439 4,006,173 3,636,057

Other Buses - to be purchased from Capital Fund and paid Buses 1,821,040 2,733,510 2,733,510 back from later bond sales) Subtotal - Other 1,821,040 2,733,510 2,733,510 Total - Capital Plan $ 9,540,667 $ 10,097,361 $ 12,006,804

86 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Enterprise Funds

Enterprise Funds An enterprise fund is a proprietary fund that must be used to account for the District’s activities for which outside users are charged a fee roughly equal to the cost of providing the goods and services of those activities. The District’s Enterprise Funds are the National Breakfast and Lunch Program (Child Nutrition Program) and Athletic Concessions.

Child Nutrition Program The Child Nutrition Program is an extremely large operation at Clear Creek School District. This is a budgeted fund and it must be formally adopted by the Board of Trustees.

The program serves 4.6 million meals every year (over 26,000 every day). The program is funded through several sources. One source of income is the revenue derived from the sale of breakfast and lunch to children and employees of the District. In the 2008–2009 budget, we project almost $9 million in food sales.

The second largest source of income comes from reimbursements from the federal government through the National School Lunch Program. This represents reimbursements from the Federal government for free or reduced price meals for our most disadvantaged students. This amounts to over $4 million. We anticipate the number of students utilizing the National School Lunch Program to increase from 7,000 in 2006–2007 to over 7,500 in the 2008–2009 school year. The District also receives a small level of funding from the State.

On the expenditure side, the real cost of running this operation can be found in food costs. While personnel requirements are great, the cost of labor is small when compared to the cost of food.

Our Child Nutrition Fund accounts for just over $13 million in revenue and expenses every year. Since enrollment is increasing, we expect this program to grow in size as well.

Athletic Concessions Athletic concessions represent a very small, but a very important piece of our Enterprise Fund. Revenue from this source accounts for $100,000. For a District with a total budget of over $338 million, it almost seems insignificant; however, this fund is crucial for our athletic program and serves a vital purpose in the district.

87 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Enterprise Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 6,863,618 7,327,998 7,399,642 8,370,000 9,090,000 State Revenue 48,388 50,471 53,726 55,000 60,000 Federal Revenue 2,880,228 2,948,198 3,182,966 3,705,000 4,010,000

Total Revenues 9,792,234 10,326,667 10,636,334 12,130,000 13,160,000

Expenditures: Payroll Costs 3,540,845 3,739,226 3,875,451 4,390,500 5,325,000 Professional & Contracted Services 754,796 852,462 945,425 1,044,500 92,500 Supplies & Materials 4,965,747 4,856,736 4,956,273 5,869,000 7,022,687 Other Operating Expenses 248,902 274,576 201,028 575,000 467,000 Capital Outlay - - 82,004 - -

Total Expenditures 9,510,290 9,723,000 10,060,181 11,879,000 12,907,187

Excess (Deficiency) of Revenues Over (Under) Expenditures 281,944 603,667 576,153 251,000 252,813

Other Resources - - - - - Other Uses - - - - -

Total Other Resources and (Uses) - - - - - (y) Other Resources Over Expenditures and Other Uses 281,944 603,667 576,153 251,000 252,813

Fund Balance - September 1 (Beginning) 1,404,538 1,686,482 2,357,069 2,933,222 3,184,222

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 1,686,482 2,357,069 2,933,222 3,184,222 3,437,035

88 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Internal Service Funds

Internal Service Funds An internal service fund is a proprietary fund that must be used for services provided to organizations inside the District on a cost reimbursement basis. The District’s Internal Service Funds are the District’s health, workers’ compensation, disability self-insurance plans and property insurance.

Health Insurance Fund This fund is used to manage the District’s self-funded health insurance program. This $23 million program is funded through both employee and district contributions. The District provides funding at $225 per employee per month ($2,700 per year). Employees fund the remainder of the plan through premiums paid on either an employee only or at various levels of family coverage.

Several years ago, the health plan was in poor financial condition. Premiums had not changed in a number of years and the plan was running at a deficit. Changes were needed to ensure the plan remained solvent. As a result, major premium and plan design changes were made which help mend the health plan for several years. However, in the last two years the plan has experienced several large claims that have chipped away at fund balances. As a result, the District’s Employee Benefits Committee, a committee of teachers and staff, made the recommendation to modify the plan design to achieve over $3 million in plan savings. In addition, the District committed an additional $1 million to the plan. These modifications helped bring the plan back in line. Changes will take place effective January 1, 2009.

Worker’s Compensation Fund The District also has a self-funded workers compensation program. Premiums and expenditures for this program are accounted for in this fund. This is a district funded plan and in order to keep costs low, the District has developed a proactive employee safety program. As a result, the District has an excellent safety record and consequently very low workers compensation claims. Reserves are very healthy in this fund as well.

Disability Insurance Fund This fund is in place to handle the District’s self-funded long-term disability plan. This plan is also entirely funded through district contributions. Employees are offered the option, at their own expense, to obtain short term disability insurance through a district approved insurance carrier.

Property and Casualty Insurance Fund This fund was established to help the District manage fluctuations in property and casualty insurance premiums. It was funded after the active hurricane season of 2005 with $4.5 million in seed money from the General Fund. In 2005 two massive hurricanes hit the shores of Texas and Louisiana with major destructive force. Insurance industry financial losses resulted in much higher premiums while maximum insured values were drastically reduced. Clear Creek experienced a 225% increase in premiums from $1.2 million in 2005 to $3.9 million in 2006. Additionally, we were unable to insure our property to its full value when policies were renewed. Before the storms we had insured our property up to $500 million. After the storms we were only able to insure a total of $50 million in property value. Another major hurricane, Ike, hit the upper Texas coast in September of 2008. The District expects a substantial increase in property and casualty insurance premiums again in 2009 as a result of the wide-spread damage from this storm. The presence of this fund will lessen the financial impact of these premiums on district operations.

89 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Internal Service Funds Budget for the Year Ending August 31, 2009

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Local Revenue 17,269,704 18,368,135 25,907,004 24,095,000 28,410,000 State Revenue - - - - - Federal Revenue - - - - -

Total Revenues 17,269,704 18,368,135 25,907,004 24,095,000 28,410,000

Expenditures: Payroll Costs - - - - - Professional & Contracted Services 1,163,312 1,207,466 1,642,466 1,515,500 1,812,500 Supplies & Materials 3,622 4,336 3,760 10,000 11,500 Other Operating Expenses 15,113,852 16,838,911 23,414,860 22,859,500 27,286,000 Capital Outlay - - - - -

Total Expenditures 16,280,786 18,050,713 25,061,086 24,385,000 29,110,000

Excess (Deficiency) of Revenues Over (Under) Expenditures 988,918 317,422 845,918 (290,000) (700,000)

Other Resources 4,565,783 141,416 - 100,000 100,000 Other Uses - - - - -

Total Other Resources and (Uses) 4,565,783 141,416 - 100,000 100,000

Other Resources Over Expenditures and Other Uses 5,554,701 458,838 845,918 (190,000) (600,000)

Fund Balance - September 1 (Beginning) 3,328,558 4,355,903 9,239,109 9,239,107 8,949,107

Increase (Decrease) in Fund Balance - - - - -

Fund Balance - August 31 (Ending) 4,355,903 9,239,108 10,226,443 8,949,107 8,349,107

90 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Supporting Financial Schedules

Combined Statement of General Fund Expenditures

Detail by Function and Object Code The Combined Statement of Expenditures by Function and Object Code shown on the following pages expands upon the expenditures portion of the Combined Statement of Revenues, Expenditures and Changes in Fund Balance shown on page 65. Expenditures are broken down to the Function Code and major Object Code level.

The Function Code is a mandatory 2 digit code applied to expenditures that identifies the purpose of the transaction. The first digit identifies the major class and the second digit refers to the specific function within the area. Example: The function "Health Service" is coded 33. The first 3 specifies Support Services - Student (Pupil) and the second 3 is Health Services.

The Object Code is a mandatory 4 digit code identifying the nature and object of an account, a transaction or a source. The first of the four digits identifies the type of account or transaction, the second digit identifies the major area, and the third and fourth digits provide further sub- classifications. Example: Money received for current year taxes is classified in account 5711. The 5 denotes revenue, the 7 shows Local and Intermediate Sources, the 1 denotes local real and personal property taxes revenue and the final 1 specifies current year levy.

91 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Expenditures by Function and Object Code General Fund Budget for the Year Ending August 31, 2009

Budget Budget Description 2005 2006 2007 2008 2009 11 - Instruction 6100 Payroll Costs 113,444,233 121,736,739 129,753,450 148,199,147 158,626,553 6200 Contracted Services 1,611,424 1,315,097 1,363,461 1,714,977 2,639,307 6300 Supplies & Materials 2,931,793 2,781,349 3,162,682 3,976,639 4,195,817 6400 Other Costs 205,212 224,879 304,570 428,385 367,887 6500 Debt Services - - - - - 6600 Capital Outlay 127,258 121,062 179,126 121,500 69,500 8900 Other Uses - - - - - Total 118,319,919 126,179,126 134,763,289 154,440,648 165,899,064

12 - Instructional Resources 6100 Payroll Costs 2,698,006 3,103,551 3,230,043 3,706,825 3,793,535 6200 Contracted Services 61,282 13,580 18,041 18,180 23,280 6300 Supplies & Materials 464,362 659,042 823,403 673,855 659,521 6400 Other Costs 1,780 5,338 8,574 6,465 6,665 6500 Debt Services - - - - - 6600 Capital Outlay - - 8,404 - - Total 3,225,430 3,781,511 4,088,465 4,405,325 4,483,001

13 - Curriculum & Staff Development 6100 Payroll Costs 526,642 1,614,894 1,691,364 2,071,230 2,505,320 6200 Contracted Services 113,151 76,721 113,082 119,023 131,750 6300 Supplies & Materials 108,988 100,892 106,105 97,410 84,349 6400 Other Costs 150,076 202,279 264,393 256,260 301,330 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 898,858 1,994,786 2,174,944 2,543,923 3,022,749

21 - Instructional Administration 6100 Payroll Costs 2,171,022 1,348,887 1,671,100 2,045,925 2,474,125 6200 Contracted Services 25,874 96,749 44,761 86,750 93,600 6300 Supplies & Materials 56,921 47,853 90,274 56,250 73,030 6400 Other Costs 51,183 56,563 52,272 74,890 91,190 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 2,305,001 1,550,052 1,858,407 2,263,815 2,731,945

23 - School Administration 6100 Payroll Costs 10,819,179 11,865,621 12,777,334 14,531,697 15,639,875 6200 Contracted Services 49,599 104,779 82,710 135,144 155,733 6300 Supplies & Materials 135,327 139,017 151,773 135,508 193,811 6400 Other Costs 42,931 64,480 78,580 105,710 122,985 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 11,047,036 12,173,897 13,090,397 14,908,059 16,112,404

31 - Guidance & Counseling 6100 Payroll Costs 5,708,979 6,014,397 6,720,609 7,838,846 8,320,325 6200 Contracted Services 28,788 59,813 62,088 144,142 62,900 6300 Supplies & Materials 226,131 269,678 237,933 199,385 300,819 6400 Other Costs 27,705 31,137 29,348 30,148 54,748 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 5,991,604 6,375,025 7,049,978 8,212,521 8,738,792

92 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Expenditures by Function and Object Code General Fund Budget for the Year Ending August 31, 2009

Budget Budget Description 2005 2006 2007 2008 2009 32 - Social Work 6100 Payroll Costs 171,567 170,938 (8,151) 30,000 21,300 6200 Contracted Services 141,000 141,000 151,898 202,000 245,000 6300 Supplies & Materials 2,465 1,673 1,437 2,400 2,400 6400 Other Costs - 75 114 1,681 1,681 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 315,032 313,686 145,298 236,081 270,381

33 - Health Services 6100 Payroll Costs 1,760,964 1,930,556 2,088,284 2,376,300 2,454,125 6200 Contracted Services 15,937 16,173 15,489 27,005 33,725 6300 Supplies & Materials 29,980 32,828 1,437 37,273 37,583 6400 Other Costs 159 2,145 855 5,800 6,250 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 1,807,040 1,981,702 2,106,065 2,446,378 2,531,683

34 - Student Transportation 6100 Payroll Costs 5,752,125 6,174,461 6,249,267 6,885,326 7,837,800 6200 Contracted Services 196,435 160,542 271,749 230,650 232,256 6300 Supplies & Materials 920,469 1,214,013 1,715,901 1,975,985 3,199,169 6400 Other Costs (402,914) (372,763) (283,200) (336,500) (432,290) 6500 Debt Services 779,200 - - - - 6600 Capital Outlay - 498,216 951,000 - - Total 7,245,316 7,674,469 8,904,717 8,755,461 10,836,935

35 - Food Services 6100 Payroll Costs 181,734 224,637 233,682 304,875 298,025 6200 Contracted Services - - - 20,490 20,500 6300 Supplies & Materials 120,191 92,037 45,324 - - 6400 Other Costs - - - - - 6500 Debt Services - - - - - 6600 Capital Outlay 606,307 - - - - Total 908,232 316,674 279,006 325,365 318,525

36 - Cocurricular 6100 Payroll Costs 2,316,722 2,618,775 2,688,245 3,109,650 3,359,628 6200 Contracted Services 287,917 328,640 311,833 408,979 422,219 6300 Supplies & Materials 579,048 579,297 621,142 565,701 565,901 6400 Other Costs 780,408 728,476 893,929 1,074,225 1,334,366 6500 Debt Services - - - - - 6600 Capital Outlay 30,436 26,363 66,880 6,000 4,500 Total 3,994,532 4,281,551 4,582,029 5,164,555 5,686,614

41 - General Administration 6100 Payroll Costs 3,173,905 3,508,634 3,974,047 4,502,875 4,784,175 6200 Contracted Services 2,471,091 2,412,315 2,234,416 2,556,509 1,033,350 6300 Supplies & Materials 335,068 301,584 403,164 418,784 449,519 6400 Other Costs 282,340 296,316 436,926 469,611 474,435 6500 Debt Services - - - - - 6600 Capital Outlay - 12,394 - - - 8900 Other Uses - - - - - Total 6,262,404 6,531,243 7,048,553 7,947,779 6,741,479

51 - Plant Maintenance 6100 Payroll Costs 9,452,900 10,149,674 10,815,802 11,838,050 12,829,100 6200 Contracted Services 8,774,268 8,911,212 10,537,411 12,249,729 3,490,219 6300 Supplies & Materials 1,392,866 1,441,710 1,589,457 1,792,090 1,827,350 6400 Other Costs 1,380,764 2,321,216 4,013,291 3,157,582 2,658,672 6500 Debt Services 413,415 - - - - 6600 Capital Outlay - 262,927 335,556 135,300 135,300 Total 21,414,213 23,086,73993 27,291,517 29,172,751 20,940,641 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Expenditures by Function and Object Code General Fund Budget for the Year Ending August 31, 2009

Budget Budget Description 2005 2006 2007 2008 2009 52 - Security & Monitoring 6100 Payroll Costs 31,762 241,062 406,891 441,050 570,975 6200 Contracted Services 1,166,763 1,369,551 1,339,548 1,679,560 1,915,567 6300 Supplies & Materials 69,059 115,972 21,943 28,378 25,150 6400 Other Costs 7,244 5,428 12,793 13,500 15,850 6500 Debt Services - - - - - 6600 Capital Outlay 154,378 50,440 19,265 - - Total 1,429,206 1,782,453 1,800,440 2,162,488 2,527,542

53 - Data Services 6100 Payroll Costs 2,251,073 2,412,445 2,466,785 2,788,450 2,889,575 6200 Contracted Services 688,784 689,364 848,327 688,456 692,432 6300 Supplies & Materials 772,592 777,664 438,096 456,305 318,580 6400 Other Costs 23,975 34,417 27,310 41,574 36,499 6500 Debt Services - - - - - 6600 Capital Outlay 136,794 25,447 203,763 145,000 935,000 Total 3,873,218 3,939,337 3,984,281 4,119,785 4,872,086

61 - Community Services 6100 Payroll Costs 99,794 105,875 76,764 104,975 91,600 6200 Contracted Services 618 24,652 41,370 40,000 - 6300 Supplies & Materials 8,778 8,965 5,896 11,700 21,700 6400 Other Costs 10,495 12,646 9,929 12,250 17,250 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 119,685 152,138 133,959 168,925 130,550

71 - Debt Services 6100 Payroll Costs - - - - - 6200 Contracted Services - - - - - 6300 Supplies & Materials - - - - - 6400 Other Costs - - - - - 6500 Debt Services 380,593 757,986 - - - 6600 Capital Outlay - - - - - Total 380,593 757,986 - - -

81 - Facilities Acquisition & Construction 6100 Payroll Costs - - - - - 6200 Contracted Services - - - - - 6300 Supplies & Materials - - - - - 6400 Other Costs - - - - - 6500 Debt Services - - - - - 6600 Capital Outlay 8,599,179 - - - - Total 8,599,179 - - - -

93 - Payments to Fiscal Agent 6100 Payroll Costs - - - - - 6200 Contracted Services 54,120 391,700 408,325 458,000 - 6300 Supplies & Materials - - - - - 6400 Other Costs - 94,830 94,190 88,100 11,348,095 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 54,120 486,530 502,515 546,100 11,348,095

95 - Payments to JJAEP 6100 Payroll Costs - - - - - 6200 Contracted Services 83,322 13,713 102,381 131,000 110,600 6300 Supplies & Materials - - - - - 6400 Other Costs - - - - - 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 83,322 13,71394 102,381 131,000 110,600 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Expenditures by Function and Object Code General Fund Budget for the Year Ending August 31, 2009

Budget Budget Description 2005 2006 2007 2008 2009 97 - Payments to Tax Increment Fund 6100 Payroll Costs - - - - - 6200 Contracted Services - - - - - 6300 Supplies & Materials - - - - - 6400 Other Costs 647,256 747,077 1,022,556 1,300,000 1,300,000 6500 Debt Services - - - - - 6600 Capital Outlay - - - - - Total 647,256 747,077 1,022,556 1,300,000 1,300,000

Sub-Total Expenditures 198,921,194 204,119,695 220,928,796 249,250,959 268,603,086

Other Uses/Non-Operating Expe - 2,000,000 2,094,793 - 1,535,000

Total Expenditures 198,921,194 206,119,695 223,023,589 249,250,959 270,138,086

Summarized by Object Code

6100 Payroll Costs 160,560,607 173,221,146 184,835,515 210,775,221 226,496,036 6200 Contracted Services 15,770,373 16,125,601 17,946,890 20,910,594 11,302,438 6300 Supplies & Materials 8,154,039 8,563,574 9,415,967 10,427,663 11,954,699 6400 Other Costs 3,208,615 4,454,539 6,966,430 6,729,681 17,705,613 6500 Debt Services 1,573,208 757,986 - - - 6600 Capital Outlay 9,654,352 996,849 1,763,994 407,800 1,144,300 8900 Other Uses - 2,000,000 2,094,793 - 1,535,000

Total Expenditures 198,921,194 206,119,695 223,023,589 249,250,959 270,138,086

95 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Overview of Account Codes

Section 44.007 of the Texas Education Code (Code or TEC) requires that a standard school district fiscal accounting system be adopted by each school district. The system must meet at least the minimum requirements prescribed by the State Board of Education and also be subject to review and comment by the state auditor. Additionally, the accounting system must conform to Generally Accepted Accounting Principles (GAAP). This section further requires that a report be provided at the time that the school district budget is filed, showing financial information sufficient to enable the state board of education to monitor the funding process and to determine educational system costs by school district, campus and program.

The Texas Education Code, Section 44.008, requires each school district to have an annual independent audit conducted that meets the minimum requirements of the State Board of Education, subject to review and comment by the State Auditor. The annual audit must include the performance of certain audit procedures for the purpose of reviewing the accuracy of the fiscal information provided by the district through the Public Education Information Management System (PEIMS). The audit procedures are to be adequate to detect material errors in the school district's fiscal data to be reported through the PEIMS system for the fiscal period under audit.

A major purpose of the following accounting code structure is to establish the standard school district fiscal accounting system required by law. Although certain codes within the overview may be used at local option, the sequence of the codes within the structure, and the funds and chart of accounts, are to be uniformly used by all school districts in accordance with generally accepted accounting principles.

ACCOUNT CODE STRUCTURE

X X X X X X X X X X X X X X X X X X X X

Fund Year Function Organization Program Local Object Code Sub-Object Code Code Code Code Intent Option Code Code Code

(1xx-8xx) (0-9) (11-99) (001-999) (11-99) (xxx) Assets (1xxx) Liabilities (xx) (2xxx) Fund Equity (3xxx) Account Clearing Accounts (4xxx) Groups Revenues/Income (5xxx) (9xx) Expenditures/Expenses (6xxx) Other Resources/Non Operating Revenues/Residual Equity Transfers In (7xxx) Other Uses/Non Operating Expenses/Residual Equity Transfers Out(8xxx)

96 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ BASIC SYSTEM CODE COMPOSITION

Fund Code The fund code is a mandatory 3 digit code to be used for all financial transactions to identify the fund group and specific fund. The first digit refers to the fund group, and the second and third digit specifies the fund. Example: A Special Revenue Fund could be coded 211. The 2 indicates the Special Revenue Fund, the 11 specifies ESEA, Title I, Part A - Improving Basic Programs.

Fund Title 100 General Fund 100-199 All General Funds

200/300/400 Special Revenue Funds 200-289 Federal Programs 290-379 Shared Services Arrangements - Federally Funded 380-429 State Programs 430-459 Shared Services Arrangements - State/Local Funded 460-499 Local Programs

500 Debt Service Funds 500-599 All Debt Service Funds

600 Capital Projects Funds 600-699 All Capital Project Funds

700 Proprietary Fund Types 700-749 Enterprise Funds 750-799 Internal Service Funds

800 Fiduciary Fund Types and Similar Component Units 800-829 Trust Funds 830-849 Investment Trust Funds 850-859 Pension Trust Funds 860-899 Agency Funds

900 General Fixed Assets and General Long-Term Debt Account Groups 901 General Fixed Assets Account Group 902 General Long-Term Debt Account Group

Fiscal Year Code The fiscal year code is a mandatory single digit code that identifies the fiscal year of the transaction or the project year of inception of a grant project. Example: For the 01-02 fiscal year of the school district, a 2 would denote the fiscal year.

97 FY 2008 – 2009 Budget Detailed Budget Analysis

Function Code The function code is a mandatory 2 digit code applied to expenditures/expenses that identifies the purpose of the transaction. The first digit identifies the major class and the second digit refers to the specific function within the area. Example: The function Health Service is coded 33. The first 3 specifies Support Services - Student (Pupil) and the second 3 is Health Services.

Function Title 10 Instruction and Instructional Related Services 11 Instruction 12 Instructional Resources and Media Services 13 Curriculum Development and Instructional Staff Development 20 Instructional and School Leadership 21 Instructional Leadership 23 School Leadership 30 Support Services (Pupil) 31 Guidance, Counseling and Evaluation Services 32 Social Work Services 33 Health Services 34 Student (Pupil) Transportation 35 Food Services 36 Co curricular/Extracurricular Activities 40 Administrative Support Services 41 General Administration 50 Support Services - Non-student Based 51 Plant Maintenance and Operations 52 Security and Monitoring Services 53 Data Processing Services 60 Ancillary Services 61 Community Services 70 Debt Service 71 Debt Service 80 Capital Outlay 81 Facilities Acquisition and Construction 90 Intergovernmental Charges 91 Contracted Instructional Services Between Public Schools 95 Payments to Juvenile Justice Alternative Education Programs 97 Payments to Tax Increment Fund

Organization Code The organization code is a mandatory 3 digit code identifying the organization, i.e., High School, Middle School, Elementary School, Superintendent's office, etc. An organization code does not necessarily correspond with a physical location. The activity, not the location, defines the organization. Campuses are examples of organization codes and are specified for each school district in the Texas School Directory. Example: Expenditures for a high school might be classified as 001. This is a campus organization code that is defined in the Texas School Directory for that high school.

Organization Title 001-699 Organization Units - Campuses 700 Organization Units - Administrative 800-997 Organization Units - Locally Defined 998 Unallocated Organization Unit - Local Option 999 Undistributed Organization Unit

98 FY 2008 – 2009 Budget Detailed Budget Analysis

Program Intent Code The program intent code is a 2 digit code used to designate the intent of a program provided to students. These codes are used to account for the cost of instruction and other services that are directed toward a particular need of a specific set of students. The intent (the student group toward which the instructional or other service is directed) determines the program intent code, not the demographic makeup of the students served. Example: An entire class of physics is taught at the basic level. Program intent code 11 would designate Basic Educational Services.

Program Intent Title 1X Basic Services 11 Basic Educational Services 2X Enhanced Services 21 Gifted and Talented 22 Career and Technology 23 Services to Students with Disabilities (Special Education) 24 Accelerated Education 25 Bilingual Education and Special Language Programs 3X-6X Reserved for Future State Definition 71-8X Reserved for use by Education Service Centers 9X Other 91 Athletics and Related Activities 99 Undistributed

Local Option Codes 1 The local option code is a 2 digit code for optional use to provide special accountability at the local level.

Object Code The object code is a mandatory 4 digit code identifying the nature and object of an account, a transaction or a source. The first of the four digits identifies the type of account or transaction, the second digit identifies the major area, and the third and fourth digits provide further sub- classifications. Example: Money received for current year taxes is classified in account 5711. The 5 denotes revenue, the 7 shows Local and Intermediate Sources, the 1 denotes local real and personal property taxes revenue and the final 1 specifies current year levy.

Object Title 5000 Revenue Control Accounts 5700 Revenues From Local and Intermediate Sources 5800 State Program Revenues 5900 Federal Program Revenue 6000 Expenditure/Expense Control Accounts 6100 Payroll Costs 6200 Professional and Contracted Services 6300 Supplies and Materials 6400 Other Operating Costs 6500 Debt Service 6600 Capital Outlay

Sub-Object Code The sub-object code is an optional 2 digit code that may be used by the district to further describe the transaction.

99 FY 2008 – 2009 Budget Detailed Budget Analysis

100 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Brook High School 4607 FM 2351 Friendswood, TX 77546

Mission Statement: The mission of Clear Brook High School is to provide a supportive and educationally challenging environment that develops students into life-long learners prepared to lead productive lives in the rapidly changing workplace of the future.

Principal: Kristi LaMell Clear Brook High School educates students in grades 9-12

3. Increase the involvement of parents in all areas of teaching and learning Involvement of parents/community in the education process

4. Review/modify the instructional design of facilities Safe and effective learning environments

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 9 - 12 9 - 12 9 - 12 9 - 12 9 - 12 Total Students 2,780 2,896 2,895 2,646 2,620 Attendance Rate 94.6% 95.4% 94.1% 93.8%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 142.0 160.0 162.0 185.3 178.0 Professional Support 14.0 14.0 17.0 14.4 14.4 School Leadership 6.0 6.0 6.0 6.0 6.0 Support Personnel - - - - - Total 162.0 180.0 185.0 205.7 198.4

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 8,724,796 $ 10,027,975 $ 11,238,208 $ 11,364,113 $ 12,419,375 6200 Professional/Contracted Services 164,150 126,318 142,348 137,318 136,125 6300 Supplies & Materials 326,592 458,993 484,178 460,037 419,596 6400 Other Operating Costs 143,679 182,680 182,828 212,878 229,535 6600 Capital Outlay 1,702 - - 25,000 10,000 Total Expenditures $ 9,360,919 $ 10,795,966 $ 12,047,562 $ 12,199,346 $ 13,214,631 General Fund Expenditures/Student $ 3,367 $ 3,728 $ 4,162 $ 4,610 $ 5,044

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 87.0% 92.0% 92.0% 93.0% 93.0% Writing Mathematics 76.0% 75.0% 75.0% 77.0% 77.0% Language Arts Social Studies 95.0% 94.0% 95.0% 97.0% 97.0% Science 79.0% 80.0% 81.0% 85.0% 85.0% All Tests TEA Campus Rating Acceptable Acceptable Acceptable Acceptable Acceptable 101 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek High School 2305 East Main Street League City, TX 77573 Mission Statement: Improved Student Achievement by attaining 90% mastery of all students and student groups on all components of the Texas Statewide Assessment Program Principal: Scott Bockart Clear Creek High School educates students in grades 9-12

Campus Goals: District Goals: 1. To become a Texas Education Agency "Exemplary" campus Improved student achievement Physical, cognitive, and emotional development for individual student 2. To improve and expand services to meet individual student needs success 3. Increase the involvement of parents in all areas of teaching and learning Involvement of parents/community in the education process

4. Ensure students have a safe learning environment Safe and effective learning environment

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 9 - 12 9 - 12 9 - 12 9 - 12 9 - 12 Total Students 3,491 3,815 3,908 3,162 2,815 Attendance Rate 93.6% 94.4% 93.2% 93.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 179.0 182.0 244.0 220.2 210.0 Professional Support 18.0 22.0 26.1 19.3 19.3 School Leadership 5.0 8.0 7.0 6.0 6.0 Support Personnel 1.0 1.0 1.0 0 0 Total 203.0 213.0 278.1 245.5 235.3

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 11,122,624 $ 13,333,120 $ 15,933,131 $ 14,650,515 $ 14,868,325 6200 Professional/Contracted Services 179,679 138,840 146,090 155,840 155,390 6300 Supplies & Materials 355,329 667,565 581,686 507,486 439,078 6400 Other Operating Costs 207,622 175,490 203,303 225,763 225,030 6600 Capital Outlay - - - 28,000 18,000 Total Expenditures $ 11,865,254 $ 14,315,015 $ 16,864,210 $ 15,567,604 $ 15,705,823 General Fund Expenditures/Student $ 3,399 $ 3,752 $ 4,315 $ 4,923 $ 5,579

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 91.0% 95.0% 94.0% 94.0% 94.0% Writing Mathematics 80.0% 78.0% 80.0% 81.0% 81.0% Language Arts Social Studies 95.0% 94.0% 95.0% 97.0% 97.0% Science 83.0% 83.0% 80.0% 87.0% 87.0% All Tests TEA Campus Rating Acceptable Acceptable Acceptable Acceptable Acceptable

102 FY 2008 – 2009 Budget Detailed Budget Analysis

*Clear Horizons Early College High School Based at San Jacinto College Campus South

Mission Statement: The opportunity to offer a unique high school experience which meets the needs of students who are motivated for and capable of college-level coursework and provides opportunities for the students to demonstrate a high level of performance in advanced academics, community service and areas of personal interest. Principal: Gale Ladehoff Clear Horizons Early College High School educates students in grades 9-12

Campus Goals: District Goals: Create lifelong learners Improved student achievement Heighten expectations for all Physical, cognitive, and emotional development for individual student success Emphasize a personalized learning environment Involvement of parents/community in the education process Challenge students to be critical and independent thinkers Safe and effective learning environments Help provide a smooth transition to a four-year institution

Serve in a global community Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught - - - 9 - 12 9 - 12 Total Students - - - 208 270 Attendance Rate - - - 97.5% - - - - Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - - 11.0 28.0 Professional Support - - - - - School Leadership - - - 2.0 2.0 Support Personnel - - - 1.0 1.0 Total - - - 14.0 31.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ - $ - $ - $ 15,000 $ 41,100 6200 Professional/Contracted Services - - - 1,000 15,400 6300 Supplies & Materials - - - 23,500 25,150 6400 Other Operating Costs - - - 15,500 13,500 6600 Capital Outlay - - - - - Total Expenditures $ - $ - $ - $ 55,000 $ 95,150 General Fund Expenditures/Student $ - $ - $ - $ 1 $ 2

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading N/A N/A N/A 99.0% 99.0% Writing N/A N/A N/A Mathematics N/A N/A N/A 99.0% 99.0% Language Arts N/A N/A N/A Social Studies N/A N/A N/A 99.0% 99.0% Science N/A N/A N/A 99.0% 99.0% All Tests N/A N/A N/A TEA Campus Rating N/A N/A N/A Exemplary Exemplary *This campus opened in August 2007 *The budget does not reflect teachers salaries, as they are paid from grant funds. 103 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Lake High School 2929 Bay Area Blvd. Houston, TX 77058

Mission Statement: Provide our students with the opportunity to learn to think logically, independently, creatively, and to communicate effectively. 90% mastery of all students and SUB-POPS on Texas Statewide Assessment Program in Reading, Language Arts, Mathematics, Science, and Social Studies.

Principal: Dr. Christopher Moran Clear Lake High School educates students in grades 9-12

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 9 - 12 9 - 12 9 - 12 9 - 12 9 - 12 Total Students 3,524 3,624 3,536 3,568 3,548 Attendance Rate 95.3% 94.9% 95.1% 94.4%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 186.0 189.0 198.0 205.9 230.0 Professional Support 21.0 21.0 26.7 16.8 16.8 School Leadership 8.0 6.0 6.0 6.0 6.0 Support Personnel 1.0 1.0 1.0 - - Total 216.0 217.0 231.7 228.7 252.8

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 11,717,557 $ 12,781,250 $ 13,531,721 $ 13,599,342 $ 14,057,225 6200 Professional/Contracted Services 212,623 131,690 140,290 151,499 154,488 6300 Supplies & Materials 393,041 534,770 706,039 519,368 496,714 6400 Other Operating Costs 162,019 168,165 183,338 207,863 221,753 6600 Capital Outlay - - - 25,000 10,000 Total Expenditures $ 12,485,241 $ 13,615,875 $ 14,561,388 $ 14,503,072 $ 14,940,180 General Fund Expenditures/Student $ 3,543 $ 3,757 $ 4,118 $ 4,065 $ 4,211

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2007-08 Reading 93.0% 96.0% 95.0% 96.0% 96.0% Writing Mathematics 89.0% 86.0% 86.0% 89.0% 89.0% Language Arts Social Studies 97.0% 96.0% 97.0% 98.0% 98.0% Science 90.0% 89.0% 88.0% 90.0% 90.0% All Tests TEA Campus Rating Recognized Recognized Acceptable Acceptable Acceptable

104 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Path Alternative High School 400 South Kansas League City, TX 77573 Mission Statement: Develop successful students and provide them with the skills necessary to overcome adversity so they may become productive members of our community. Principal: Sandra Davenport Clear Path Alternative School is the District's disciplinary alternative school for grades 6-12

Campus Goals: District Goals: Physical, cognitive, and emotional development for individual student 1. To improve and expand services to meet individual student needs success 2. Increase the involvement of parents in all areas of teaching and learning Involvement of parents/community in the education process 3. Ensure students have a safe learning environment Safe and effective learning environment

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 9 - 12 9 - 12 9 - 12 9 - 12 9 - 12 Total Students 125 125 125 125 78 Attendance Rate

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 12.0 12.0 12.0 18.0 17.0 Counselors & Librarians - - - - 6.0 School Leadership 1.0 2.0 2.0 2.0 2.0 Support Personnel 3.0 3.0 3.0 2.0 2.0 Total 16.0 17.0 17.0 22.0 27.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 759,529 $ 786,400 $ 1,031,625 $ 1,032,925 $ 1,176,175 6200 Professional/Contracted Services 8,883 30,700 11,000 11,000 9,500 6300 Supplies & Materials 19,385 24,360 22,750 22,500 23,500 6400 Other Operating Costs 2,347 7,050 7,700 7,700 8,700 6600 Capital Outlay - - 0 0 0 Total Expenditures $ 790,143 $ 848,510 $ 1,073,075 $ 1,074,125 $ 1,217,875 General Fund Expenditures/Student $ 6,321 $ 6,788 $ 8,585 $ 8,593 $ 15,614

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS TAKS Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading n/a n/a n/a n/a n/a Writing n/a n/a n/a n/a n/a Mathematics n/a n/a n/a n/a n/a Language Arts n/a n/a n/a n/a n/a Social Studies n/a n/a n/a n/a n/a Science n/a n/a n/a n/a n/a All Tests n/a n/a n/a n/a n/a TEA Campus Rating n/a n/a n/a n/a n/a

105 FY 2008 – 2009 Budget Detailed Budget Analysis

*Clear Springs High School 501 Palomino Drive League City, TX 77573 Mission Statement: Infuse academic rigor, instill a sense of relevance, and nurture and shape relationships. Become an “exemplary” campus by attaining 90% mastery of all students and student groups on all components of the Texas Statewide Assessment Program Principal: Gail Love Clear Springs High School educates students in grades 9-10. Grade 11 will be added in FY 2009 and grade 12 in FY 2010.

Campus Goals: District Goals: 1. To become a Texas Education Agency "Exemplary" campus Improved student achievement 2. To improve and expand services to meet individual student needs Physical, cognitive, and emotional development for individual student success

3. Increase the involvement of parents in all areas of teaching and learning Involvement of parents/community in the education process 4. Ensure students have a safe learning environment Safe and effective learning environment

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught - - - 9 - 12 9 - 12 Total Students - - - 1,163 1,840 Attendance Rate - - - 95.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - -85.1 133.0 Professional Support - - -6.0 6.0 School Leadership - - -4.0 4.0 Support Personnel - - - - - Total - - - 95.1 143

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ - $ - $ - $ 7,405,449 $ 7,932,600 6200 Professional/Contracted Services - - - 95,450 135,432 6300 Supplies & Materials - - - 317,950 385,771 6400 Other Operating Costs - - - 134,420 190,420 6600 Capital Outlay - - - 30,500 18,000 Total Expenditures $ - $ - $ - $ 7,983,769 $ 8,662,223 General Fund Expenditures/Student $ - $ - $ - $ 6,865 $ 4,708

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2007-08 Reading ---97.0% 97.0% Writing --- Mathematics - - - 83.0% 83.0% Language Arts - - - Social Studies - - - 95.0% 95.0% Science - - - 84.0% 84.0% All Tests - - - TEA Campus Rating N/A N/A N/A Recognized Recognized *This campus opened in August 2007

106 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear View Education Center 400 South Walnut Webster, TX 77598

Mission Statement: Provide a non-traditional program that gives students who are unsuccessful on a traditional school campus the opportunity to overcome their academic deficits, develop effective social and life skills, achieve success, and earn a high school diploma. Principal: Karen Engle Clear View Education Center educates academically at-risk students in grades 6-12

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 9 - 12 9 - 12 9 - 12 9 - 12 9 - 12 Total Students 200 191 218 200 196 Attendance Rate 95.1% 93.2% 91.7% 92.3%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 22.0 24.0 26.0 34.9 35.0 Professional Support 2.0 2.0 3.0 3.0 3.0 School Leadership 2.0 2.0 1.0 1.0 1.0 Support Personnel - - - - - Total 26.0 28.0 30.0 38.9 39.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 1,345,709 $ 1,639,500 $ 2,123,100 $ 2,774,075 $ 2,812,010 6200 Professional/Contracted Services 423 725 725 875 625 6300 Supplies & Materials 23,687 31,041 36,835 36,700 39,635 6400 Other Operating Costs 513 - 9,575 12,745 20,086 6600 Capital Outlay - - - - - Total Expenditures $ 1,370,332 $ 1,671,266 $ 2,170,235 $ 2,824,395 $ 2,872,356 General Fund Expenditures/Student $ 6,852 $ 8,750 $ 9,955 $ 14,122 $ 14,655

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 90.0% 90.0% 93.0% 93.0% Writing 99.0% 99.0% Mathematics 56.0% 59.0% 76.0% 76.0% Language Arts Social Studies 81.0% 85.0% 99.0% 99.0% Science 54.0% 55.0% 86.0% 86.0% All Tests TEA Campus Rating Acceptable Acceptable Acceptable Recognized Recognized

107 FY 2008 – 2009 Budget Detailed Budget Analysis

Brookside Intermediate School 3535 East Parkwood Friendswood, TX 77546 Mission Statement: Create a positive, safe, and stimulating learning environment which enables each student to recognize and develop his/her unique talents while excelling academically, emotionally, and physically; thus preparing each student to be a life-long learner and successful contributor to our multi- cultural, global society. Principal: Deanna Daws Brookside Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-90 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 1,287 832 797 825 813 Attendance Rate 95.5% 96.2% 96.0% 96.4%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 72.0 47.0 60.0 59.6 60.0 Professional Support 8.0 11.0 11.0 4.3 4.3 School Leadership 3.0 3.0 4.0 3.0 3.0 Support Personnel - - - - - Total 83.0 61.0 75.0 66.9 67.3

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 4,180,587 $ 3,832,775 $ 3,839,879 $ 3,913,001 $ 4,194,950 6200 Professional/Contracted Services 14,935 24,985 23,335 23,085 23,685 6300 Supplies & Materials 124,213 112,409 101,842 103,817 104,425 6400 Other Operating Costs 14,684 18,912 19,506 21,856 31,504 6600 Capital Outlay - - - - - Total Expenditures $ 4,334,420 $ 3,989,081 $ 3,984,562 $ 4,061,759 $ 4,354,564 General Fund Expenditures/Student $ 3,368 $ 4,795 $ 4,999 $ 4,923 $ 5,356

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 92.5% 94.0% 98.0% 97.0% 97.0% Writing 93.0% 96.0% 99.0% 96.0% 96.0% Mathematics 79.0% 88.0% 90.0% 96.0% 96.0% Language Arts Social Studies 96.0% 96.0% 98.0% 99.0% 99.0% Science 90.0% 90.0% All Tests TEA Campus Rating Recognized Recognized Recognized Recognized Recognized

108 FY 2008 – 2009 Budget Detailed Budget Analysis

* Clear Creek Intermediate School 2451 East Main Street League City, TX 77573 Mission Statement: Facilitate the educational and social development of its students.

Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught Total Students - - - - - Attendance Rate 0.0% 0.0% 0.0% 0.0% 0.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - - - - Professional Support - - - - - School Leadership - - - - - Support Personnel - - - - - Total - - - - -

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ - $ - $ - $ - $ - 6200 Professional/Contracted Services - - - - - 6300 Supplies & Materials - - - - 8,500 6400 Other Operating Costs - - - - 8,500 6600 Capital Outlay - - - - - Total Expenditures $ - $ - $ - $ - $ 17,000 General Fund Expenditures/Student

Texas Assessment of Knowledge & Skills (TAKS) TAKS** TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 93.0% Writing 95.0% Mathematics 89.0% Language Arts Social Studies 95.0% Science All Tests TEA Campus Rating Recognized * This campus is slated to open in August of 2009.

109 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Lake Intermediate School 15545 El Camino Real Houston, TX 77062

Mission Statement: Provide setting and structure to meet the needs of the student population, to develop situations and opportunities for the students to experience success and to adapt to the changing needs and demographics of the students.

Principal: Brett Lemley Clear Lake Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 994 994 956 947 1127 Attendance Rate 97.1% 97.0% 97.2% 97.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 63.0 64.0 65.0 66.1 72.0 Professional Support 5.0 3.0 11.1 4.9 4.9 School Leadership 3.0 3.0 3.0 3.0 3.0 Support Personnel 2.0 - - - - Total 73.0 70.0 79.1 74.0 79.9

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,635,410 $ 4,045,800 $ 4,262,232 $ 4,382,271 $ 4,678,875 6200 Professional/Contracted Services 17,942 23,285 25,155 24,385 25,385 6300 Supplies & Materials 109,048 116,494 115,440 114,500 125,364 6400 Other Operating Costs 15,223 25,546 26,975 26,756 34,804 6600 Capital Outlay - - - - - Total Expenditures $ 3,777,623 $ 4,211,125 $ 4,429,802 $ 4,547,912 $ 4,864,428 General Fund Expenditures/Student $ 3,800 $ 4,237 $ 4,634 $ 4,802 $ 4,316

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% 95.0% 95.0% 98.0% 98.0% Writing 97.0% 97.0% 96.0% 97.0% 97.0% Mathematics 85.0% 87.0% 92.0% 96.0% 96.0% Language Arts Social Studies 96.0% 95.0% 99.0% 98.0% 98.0% Science 86.0% 86.0% All Tests TEA Campus Rating Recognized Acceptable Recognized Acceptable Acceptable

110 FY 2008 – 2009 Budget Detailed Budget Analysis

Creekside Intermediate School 4320 West Main Street League City, TX 77573 Mission Statement: To create a dynamic educational environment that encourages success and growth through innovative teamwork within a diverse society. Principal: Pete Catarina Creekside Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 680 748 788 810 828 Attendance Rate 96.1% 96.6% 96.2% 96.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 44.0 47.0 53.0 52.0 55.0 Professional Support 7.0 3.0 13.0 4.8 4.8 School Leadership 3.0 3.0 2.0 2.0 2.0 Support Personnel - - - - - Total 54.0 53.0 68.0 58.8 61.8

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,933,719 $ 3,251,525 $ 3,381,679 $ 3,536,203 $ 3,639,250 6200 Professional/Contracted Services 9,167 18,735 21,195 21,345 21,845 6300 Supplies & Materials 79,693 88,549 93,310 93,425 95,778 6400 Other Operating Costs 14,239 24,310 26,086 30,736 37,655 6600 Capital Outlay - - - - - Total Expenditures $ 3,036,818 $ 3,383,119 $ 3,522,270 $ 3,681,709 $ 3,794,528 General Fund Expenditures/Student $ 4,466 $ 4,523 $ 4,470 $ 4,545 $ 4,583

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 92.0% 94.0% 95.0% 98.0% 98.0% Writing 97.0% 98.0% 97.0% 95.0% 95.0% Mathematics 70.0% 86.0% 87.0% 94.0% 94.0% Language Arts Social Studies 90.0% 92.0% 98.0% 98.0% 98.0% Science 88.0% 88.0% All Tests TEA Campus Rating Recognized Recognized Acceptable Recognized Recognized

111 FY 2008 – 2009 Budget Detailed Budget Analysis

League City Intermediate School 2588 Webster Street League City, TX 77573

Mission Statement: Learning and creativity inspire success and to achieve the highest state recognition in all programs areas-Exemplary Campus Status Principal: Kim Broulliard League City Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 1,149 1,127 1,149 1,176 1,298 Attendance Rate 96.6% 96.2% 96.1% 96.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 66.0 70.0 69.0 74.4 74.0 Professional Support 5.0 2.0 7.5 4.5 4.5 School Leadership 3.0 3.0 3.0 3.0 3.0 Support Personnel - - - - - Total 74.0 75.0 79.5 81.9 81.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,997,158 $ 4,322,825 $ 4,753,053 $ 4,846,526 $ 5,165,060 6200 Professional/Contracted Services 17,767 23,135 24,735 26,585 28,885 6300 Supplies & Materials 102,958 119,355 123,820 136,745 133,433 6400 Other Operating Costs 22,918 27,830 32,524 27,556 35,164 6600 Capital Outlay - - - - - Total Expenditures $ 4,140,801 $ 4,493,145 $ 4,934,132 $ 5,037,412 $ 5,362,542 General Fund Expenditures/Student $ 3,604 $ 3,987 $ 4,294 $ 4,284 $ 4,131

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 92.0% 95.0% 96.0% 98.0% 98.0% Writing 96.0% 97.0% 97.0% 98.0% 98.0% Mathematics 75.0% 92.0% 89.0% 93.0% 93.0% Language Arts Social Studies 97.0% 98.0% 98.0% 99.0% 99.0% Science 100.0% 100.0% All Tests 82.0% TEA Campus Rating Recognized Recognized Recognized Recognized Recognized

112 FY 2008 – 2009 Budget Detailed Budget Analysis

Seabrook Intermediate School 2401 East Meyer Street Seabrook, TX 77586 Mission Statement: Educate children by encouraging individual achievement and developing skills needed to be successful, responsible, and productive members of a global society. Principal: David Williams Seabrook Intermediate educates students in grades 6-8 and houses the District's science magnet program.

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 1,056 1,001 1,019 1,055 1,051 Attendance Rate 95.7% 96.6% 95.8% 95.7%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 59.0 68.0 63.0 66.4 68.0 Professional Support 6.0 2.0 10.3 4.4 4.4 School Leadership 3.0 3.0 4.0 3.0 3.0 Support Personnel - - - - - Total 68.0 73.0 77.3 73.8 75.4

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2007-08 6100 Payroll Costs $ 3,732,902 $ 4,298,600 $ 4,341,586 $ 4,553,398 $ 4,771,180 6200 Professional/Contracted Services 10,675 19,635 21,085 20,635 21,135 6300 Supplies & Materials 111,177 113,780 112,699 118,228 112,828 6400 Other Operating Costs 16,195 32,295 34,856 38,636 47,184 6600 Capital Outlay - - - - - Total Expenditures $ 3,870,948 $ 4,464,310 $ 4,510,226 $ 4,730,897 $ 4,952,327 General Fund Expenditures/Student $ 3,666 $ 4,460 $ 4,426 $ 4,484 $ 4,712

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% 95.0% 97.0% 98.0% 98.0% Writing 93.0% 98.0% 98.0% 96.0% 96.0% Mathematics 88.0% 89.0% 91.0% 95.0% 95.0% Language Arts Social Studies 98.0% 96.0% 99.0% 99.0% 99.0% Science 93.0% 93.0% All Tests TEA Campus Rating Recognized Recognized Recognized Exemplary Exemplary

113 FY 2008 – 2009 Budget Detailed Budget Analysis

Space Center Intermediate School 17400 Saturn Lane Houston, TX 77058 Mission Statement: Provide a positive learning environment in which each student has the opportunity to develop and grow into a successful, productive citizen. Principal: Susan Carpenter Space Center Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 1,295 1,323 1,222 1,151 1,260 Attendance Rate 97.3% 96.9% 96.8% 96.9%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 72.0 75.0 72.0 74.2 79.0 Professional Support 7.0 8.0 10.1 5.0 5.0 School Leadership 3.0 3.0 2.8 2.0 2.0 Support Personnel - - - - - Total 82.0 86.0 84.9 81.2 86.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 4,113,541 $ 4,521,375 $ 4,767,024 $ 4,848,872 $ 5,169,028 6200 Professional/Contracted Services 18,598 28,763 34,533 33,058 30,185 6300 Supplies & Materials 129,383 124,144 122,820 124,156 124,498 6400 Other Operating Costs 24,021 30,903 32,524 33,724 44,098 6600 Capital Outlay - - - - - Total Expenditures $ 4,285,543 $ 4,705,185 $ 4,956,901 $ 5,039,810 $ 5,367,809 General Fund Expenditures/Student $ 3,309 $ 3,556 $ 4,056 $ 4,379 $ 4,260

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 98.0% 97.0% 99.0% 99.0% 99.0% Writing 98.0% 99.0% 99.0% 99.0% 99.0% Mathematics 93.0% 93.0% 97.0% 99.0% 99.0% Language Arts Social Studies 99.0% 98.0% 99.0% 99.0% 99.0% Science 98.0% 98.0% All Tests TEA Campus Rating Recognized Acceptable Recognized Exemplary Exemplary

114 FY 2008 – 2009 Budget Detailed Budget Analysis

Victory Lakes Intermediate School 2880 West Walker League City, TX 77573

Mission Statement: Create an environment that fosters the development of Vision, Leadership and Pride and that will allow each student to progress to their highest capabilities, limited only by their desires and imagination. Principal: Barry Beck Victory Lakes Intermediate educates students in grades 6-8

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 6 - 8 Total Students 756 940 997 1,070 1,201 Attendance Rate 96.0% 96.0% 95.6% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 40.0 63.0 58.0 62.3 72.0 Professional Support 4.0 2.0 10.5 5.0 5.0 School Leadership 3.0 3.0 2.0 2.0 2.0 Support Personnel - - - - - Total 47.0 68.0 70.5 69.3 79.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,345,250 $ 3,710,900 $ 4,065,435 $ 4,309,180 $ 4,551,950 6200 Professional/Contracted Services 9,499 17,985 19,435 19,785 20,085 6300 Supplies & Materials 76,864 111,638 116,747 122,426 121,113 6400 Other Operating Costs 12,506 25,180 26,356 28,606 38,680 6600 Capital Outlay 20,460 - - - - Total Expenditures $ 2,464,580 $ 3,865,703 $ 4,227,973 $ 4,479,997 $ 4,731,828 General Fund Expenditures/Student $ 3,260 $ 4,112 $ 4,241 $ 4,187 $ 3,940

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 94.0% 93.0% 95.0% 96.0% 96.0% Writing 97.0% 95.0% 97.0% 96.0% 96.0% Mathematics 85.0% 89.0% 88.0% 93.0% 93.0% Language Arts Social Studies 98.0% 95.0% 93.0% 97.0% 97.0% Science 83.0% 83.0% All Tests TEA Campus Rating Recognized Recognized Acceptable Acceptable Acceptable

115 FY 2008 – 2009 Budget Detailed Budget Analysis

*Webster Intermediate School 400 S. Walnut Street Webster, TX 77573

Mission Statement: Facilitate the educational and social development of its students.

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 Total Students 777 - - - - Attendance Rate 96.3% 0.0% 0.0% 0.0% 0.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 54.0 - - - - Professional Support 9.0 - - - - School Leadership 2.0 - - - - Support Personnel - - - - - Total 65.0 - - - -

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,301,068 $ - $ - $ - $ - 6200 Professional/Contracted Services 23,476 - - - - 6300 Supplies & Materials 119,552 - - - - 6400 Other Operating Costs 13,525 - - - - 6600 Capital Outlay - - - - - Total Expenditures $ 3,457,620 $ - $ - $ - $ - General Fund Expenditures/Student

Texas Assessment of Knowledge & Skills (TAKS) TAKS** TAKS TAKS TAKS TAKS Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% Writing 98.0% Mathematics 87.0% Language Arts Social Studies 96.0% Science All Tests TEA Campus Rating Acceptable * Webster Intermediate closed at the end of the 2005 school year.

116 FY 2008 – 2009 Budget Detailed Budget Analysis

*Westbrook Intermediate School 16803 Beamer Road Friendswood, TX 77546 Mission Statement: Foster in each child the ability and desire to make positive contributions to society. In partnership with family, community, staff and student body, we will create a positive, safe and stimulating learning environment which will enable students to recognize their unique academic, emotional and physical talents. Principal: Dr. Lori Broughton Westbrook Intermediate educates students in grades 6-8 and houses the District's Gifted and Talented Magnet Program.

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught 6 - 8 6 - 8 6 - 8 6 - 8 Total Students - 1,259 1,342 1,449 1,216 Attendance Rate 96.4% 95.2% 96.9%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - 80.0 76.0 85.1 76.0 Professional Support - 5.0 6.0 5.1 5.1 School Leadership - 3.0 3.0 3.0 3.0 Support Personnel - - - - - Total - 88.0 85.0 93.2 84.1

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ - $ 4,457,175 $ 5,134,675 $ 5,330,901 $ 5,741,325 6200 Professional/Contracted Services - 39,085 50,785 52,035 51,035 6300 Supplies & Materials - 149,419 153,374 175,209 152,879 6400 Other Operating Costs - 22,605 24,781 27,756 35,404 6600 Capital Outlay - - - - - Total Expenditures $ - $ 4,668,284 $ 5,363,615 $ 5,585,901 $ 5,980,643 General Fund Expenditures/Student $ - $ 3,708 $ 3,997 $ 3,855 $ 4,918

Texas Assessment of Knowledge & Skills (TAKS) TAKS** TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 94.0% 97.0% 98.0% 98.0% Writing 95.0% 98.0% 98.0% 98.0% Mathematics 91.0% 91.0% 95.0% 95.0% Language Arts Social Studies 93.0% 95.0% 98.0% 98.0% Science 89.0% 89.0% All Tests TEA Campus Rating Recognized Recognized Acceptable Acceptable * Westbrook opened for the first time in the fall of 2005. 117 FY 2008 – 2009 Budget Detailed Budget Analysis

Armand Bayou Elementary School 16000 Hickory Knoll Houston, TX 77059 Mission Statement: Assist all children in becoming competent and creative citizens, while recognizing that every child has unique characteristics and needs. Our goal is to work collaboratively with parents, staff and community to provide an educational environment for our students that fosters positive personal growth in all areas of life. Principal: Jane Kelling Armand Bayou Elementary educates students in grades PreK-5

Campus Goals: District Goals: 1. To improve the academic achievement of every student Improved student achievement 2. To develop a learning partnership with parents, community and business Involvement of parents/community in education process 3. To provide a safe, supportive environment for learning Safe and effective learning environments

Enrollment Description 2004-05 2005-06 2006-07 2007-08 200-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 560 572 583 564 518 Attendance Rate 96.9% 96.5% 96.5% 96.5%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 35.0 37.0 34.0 36.5 45.0 Professional Support 6.0 6.0 5.3 4.5 4.5 School Leadership 2.0 2.0 1.0 2.0 2.0 Support Personnel - - - - - Total 43.0 45.0 40.3 43.0 51.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,071,587 $ 2,360,600 $ 2,611,762 $ 3,061,471 $ 2,771,825 6200 Professional/Contracted Services 312 770 770 1,480 970 6300 Supplies & Materials 34,033 38,566 33,465 41,627 28,587 6400 Other Operating Costs 4,200 5,875 7,350 9,800 9,720 6600 Capital Outlay - - - - - Total Expenditures $ 2,110,133 $ 2,405,811 $ 2,653,347 $ 3,114,378 $ 2,811,102 General Fund Expenditures/Student $ 3,768 $ 4,206 $ 4,551 $ 5,522 $ 5,427

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 99.0% 97.0% 97.0% 99.0% 99.0% Writing 98.0% 95.0% 99.0% 99.0% 99.0% Mathematics 97.0% 99.0% 96.0% 99.0% 99.0% Language Arts Social Studies Science 91.0% 89.0% 95.0% 95.0% 95.0% All Tests TEA Campus Rating Exemplary Recognized Recognized Exemplary Exemplary

118 FY 2008 – 2009 Budget Detailed Budget Analysis

Henry Bauerschlag Elementary School 2501 Brittany Bay Blvd League City, TX 77573 Mission Statement: Provide a program that enables each student to achieve his or her highest potential academically, socially, and physically in order to become responsible and productive citizens. Principal: Trudy Knight Bauerschlag Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 723 777 807 889 975 Attendance Rate 96.9% 96.9% 96.2% 96.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 42.0 50.0 45.3 57.5 63.0 Professional Support 6.0 6.0 7.0 5.0 5.0 School Leadership 2.0 2.0 1.0 2.0 2.0 Support Personnel - - - - - Total 50.0 58.0 53.3 64.5 70.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,262,922 $ 3,035,550 $ 3,297,138 $ 3,542,852 $ 3,908,675 6200 Professional/Contracted Services 948 906 926 926 926 6300 Supplies & Materials 32,875 40,156 47,332 46,647 54,983 6400 Other Operating Costs 4,259 6,517 8,518 8,548 11,248 6600 Capital Outlay - - - - - Total Expenditures $ 2,301,004 $ 3,083,129 $ 3,353,914 $ 3,598,973 $ 3,975,832 General Fund Expenditures/Student $ 3,183 $ 3,968 $ 4,156 $ 4,048 $ 4,078

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% 97.0% 97.0% 98.0% 98.0% Writing 97.0% 95.0% 97.0% 99.0% 99.0% Mathematics 93.0% 96.0% 96.0% 97.0% 97.0% Language Arts Social Studies Science 79.5% 96.0% 97.0% 97.0% 97.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

119 FY 2008 – 2009 Budget Detailed Budget Analysis

James F. Bay Elementary School 1502 Bayport Seabrook, TX 77586

Mission Statement: Providing excellence in education and ensuring that all students attain their maximum potential.

Principal: Erin Tite Bay Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 942 980 719 712 660 Attendance Rate 96.3% 96.4% 96.0% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 53.0 58.0 53.0 48.5 48.0 Professional Support 6.0 6.0 5.5 4.5 4.5 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 61.0 66.0 60.5 55.0 54.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,196,440 $ 3,691,715 $ 3,172,427 $ 3,629,761 $ 3,442,025 6200 Professional/Contracted Services 2,412 2,670 2,270 2,270 2,270 6300 Supplies & Materials 50,511 67,316 43,436 40,442 39,227 6400 Other Operating Costs 6,391 9,050 6,575 6,550 9,100 6600 Capital Outlay - - - - - Total Expenditures $ 3,255,754 $ 3,770,751 $ 3,224,708 $ 3,319,023 $ 3,492,622 General Fund Expenditures/Student $ 3,456 $ 3,848 $ 4,485 $ 4,662 $ 5,292

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2007-08 Reading 94.0% 96.0% 97.0% 98.0% 98.0% Writing 95.0% 99.0% 87.0% 94.0% 94.0% Mathematics 94.0% 94.0% 95.0% 95.0% 95.0% Language Arts Social Studies Science 83.0% 87.0% 93.0% 95.0% 95.0% All Tests TEA Campus Rating Recognized Recognized120 Recognized Exemplary Exemplary FY 2008 – 2009 Budget Detailed Budget Analysis

Brookwood Elementary School 16850 Middlebrook Dr. Houston, TX 77059 Mission Statement: Provide students with an individualized and challenging education in a positive environment which prepares them for their future and enables them to become enthusiastic, life-long learners. Principal: Cathy Homer Brookwood Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 859 862 757 742 704 Attendance Rate 97.3% 97.7% 97.2% 97.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 53.0 51.0 61.0 44.5 46.0 Professional Support 5.0 5.0 5.0 4.2 4.2 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel 5.0 5.0 - - - Total 65.0 63.0 68.0 50.7 52.2

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,166,446 $ 3,180,900 $ 3,185,968 $ 3,251,833 $ 3,199,450 6200 Professional/Contracted Services 485 495 485 495 495 6300 Supplies & Materials 50,189 46,355 41,053 23,222 22,090 6400 Other Operating Costs 8,479 15,400 18,250 20,550 22,500 6600 Capital Outlay - - - - - Total Expenditures $ 3,225,599 $ 3,243,150 $ 3,245,756 $ 3,296,100 $ 3,244,535 General Fund Expenditures/Student $ 3,755 $ 3,762 $ 4,288 $ 4,442 $ 4,609

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 99.0% 99.0% 98.0% 99.0% 99.0% Writing 99.0% 99.0% 97.0% 99.0% 99.0% Mathematics 99.0% 100.0% 98.0% 99.0% 99.0% Language Arts Social Studies Science 94.0% 100.0% 99.0% 99.0% 99.0% All Tests % TEA Campus Rating Exemplary Exemplary Exemplary Exemplary Exemplary

121 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Lake City Elementary School 1707 Fairwind Houston, TX 77062

Mission Statement: All students will achieve their highest potential in academics and social growth through various and meaningful experiences and instruction, in partnership with teachers, administrators, parents, and community.

Principal: Leslie Dragg Clear Lake City Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 523 569 517 585 602 Attendance Rate 96.5% 96.2% 96.0% 95.7%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 33.0 38.0 34.3 40.5 52.0 Professional Support 7.0 7.0 7.0 4.5 4.5 School Leadership 2.0 2.0 1.0 2.0 2.0 Support Personnel - - - - - Total 42.0 47.0 42.3 47.0 58.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,295,269 $ 2,452,750 $ 2,612,226 $ 2,715,422 $ 3,170,325 6200 Professional/Contracted Services 1,842 1,770 3,320 2,870 2,870 6300 Supplies & Materials 28,307 34,145 32,813 25,435 31,815 6400 Other Operating Costs 4,396 7,400 5,900 6,000 8,550 6600 Capital Outlay - - - - - Total Expenditures $ 2,329,814 $ 2,496,065 $ 2,654,259 $ 2,749,727 $ 3,213,560 General Fund Expenditures/Student $ 4,455 $ 4,387 $ 5,134 $ 4,700 $ 5,338

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 97.0% 99.0% 99.0% 98.0% 98.0% Writing 97.0% 99.0% 96.0% 99.0% 99.0% Mathematics 92.0% 98.0% 96.0% 94.0% 94.0% Language Arts Social Studies Science 81.0% 94.0% 99.0% 92.0% 92.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

122 FY 2008 – 2009 Budget Detailed Budget Analysis

Falcon Pass Elementary School 2465 Falcon Pass Drive Houston, TX 77062

Mission Statement: Educate and equip each child to excel as a student and future community member. Principal: Monica Grubbs Falcon Pass Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 865 848 648 618 628 Attendance Rate 96.7% 96.7% 96.6% 96.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 50.0 54.0 50.0 39.0 46.0 Professional Support 5.0 5.0 6.8 3.8 3.8 School Leadership 3.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 58.0 61.0 58.8 44.8 51.8

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,941,020 $ 3,260,950 $ 2,961,578 $ 3,037,233 $ 2,879,000 6200 Professional/Contracted Services 220 1,270 770 270 270 6300 Supplies & Materials 55,265 42,652 32,425 29,000 30,991 6400 Other Operating Costs 8,205 8,950 12,750 13,600 12,000 6600 Capital Outlay - - - - - Total Expenditures $ 3,004,710 $ 3,313,822 $ 3,007,523 $ 3,080,103 $ 2,922,261 General Fund Expenditures/Student $ 3,474 $ 3,908 $ 4,641 $ 4,984 $ 4,653

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 97.0% 98.0% 97.0% 99.0% 99.0% Writing 99.0% 97.0% 99.0% 98.0% 98.0% Mathematics 98.0% 98.0% 96.0% 97.0% 97.0% Language Arts Social Studies Science 84.0% 95.0% 94.0% 95.0% 95.0% All Tests TEA Campus Rating Recognized Exemplary Recognized Exemplary Exemplary

123 FY 2008 – 2009 Budget Detailed Budget Analysis

Lloyd R. Ferguson Elementary School 1910 Compass Rose League City, TX 77573

Mission Statement: Face the challenge of preparing our students to be contributing members of society. Develop a learning environment in which all students will be challenged. Goals include self discipline, personal growth, respect for self and others and a working knowledge of skills needed to succeed.

Principal: Elaine Sanders Ferguson Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 812 851 876 869 843 Attendance Rate 97.0% 97.3% 96.9% 96.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 50.0 52.0 45.0 51.0 57.0 Professional Support 8.0 8.0 11.6 4.6 4.6 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 60.0 62.0 58.6 57.6 63.6

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,170,113 $ 3,320,025 $ 3,354,845 $ 3,501,230 $ 3,585,300 6200 Professional/Contracted Services 2,219 2,541 3,041 2,891 1,870 6300 Supplies & Materials 37,863 47,630 45,938 43,184 42,765 6400 Other Operating Costs 6,094 6,830 8,000 7,900 12,850 6600 Capital Outlay - - - - - Total Expenditures $ 3,216,289 $ 3,377,026 $ 3,411,824 $ 3,555,205 $ 3,642,785 General Fund Expenditures/Student $ 3,961 $ 3,968 $ 3,895 $ 4,091 $ 4,321

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 99.0% 99.0% 98.0% 99.0% 99.0% Writing 98.0% 98.0% 98.0% 97.0% 97.0% Mathematics 99.0% 98.0% 100.0% 98.0% 98.0% Language Arts Social Studies Science 93.0% 94.0% 99.0% 97.0% 97.0% All Tests TEA Campus Rating Exemplary Exemplary Exemplary Exemplary Exemplary

124 FY 2008 – 2009 Budget Detailed Budget Analysis

*Gilmore Elementary School 3552 Brittany Bay Blvd

League City, TX 77573

Mission Statement: To create a positive learning environment where students feel safe and are given the tools to achieve at their highest potential.

Principal: Suzanne Jones Gilmore Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 706 706 780 917 1,022 Attendance Rate 0.0% 97.3% 96.6% 96.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - 43.0 52.0 57.0 59.0 Professional Support - - 11.0 5.0 5.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 2.0 45.0 65.0 64.0 66.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ - $ 2,614,675 $3,049,138 $3,341,739 $3,915,825 6200 Professional/Contracted Services - 770 770 1,170 1,770 6300 Supplies & Materials - 27,360 45,455 48,828 57,953 6400 Other Operating Costs - 5,450 5,650 6,050 13,650 6600 Capital Outlay - - - - - Total Expenditures $ - $ 2,648,255 $ 3,101,013 $ 3,397,787 $ 3,989,198 General Fund Expenditures/Student $ - $ 3,395 $ 3,976 $ 3,705 $ 3,903

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 98.0% 98.0% 97.0% 97.0% Writing 96.0% 97.0% 98.0% 98.0% Mathematics 98.0% 97.0% 97.0% 97.0% Language Arts Social Studies Science 92.0% 92.0% 97.0% 97.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary *Campus opened in August, 2005

125 FY 2008 – 2009 Budget Detailed Budget Analysis

Art & Pat Goforth Elementary School 2610 Webster Road League City, TX 77573

Mission Statement: Goforth Explorers- Going Forth to Explore New Learning – Continuous Improvement for Each Student in a Nurturing Environment.

Principal: Kim Noel Goforth Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 614 723 796 906 1,048 Attendance Rate 96.4% 96.5% 96.1% 96.1%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 36.0 46.0 42.8 59.0 66.0 Professional Support 8.0 8.0 10.8 5.8 5.8 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 46.0 56.0 55.6 66.8 73.8

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,597,672 $ 3,143,025 $ 3,531,207 $ 3,477,408 $ 4,001,525 6200 Professional/Contracted Services 2,757 3,266 2,970 2,570 2,870 6300 Supplies & Materials 37,346 40,719 53,526 48,350 56,535 6400 Other Operating Costs 3,618 6,000 7,593 7,325 11,350 6600 Capital Outlay - - - - - Total Expenditures $ 2,641,393 $ 3,193,010 $ 3,595,296 $ 3,535,653 $ 4,072,280 General Fund Expenditures/Student $ 4,302 $ 4,416 $ 4,517 $ 3,902 $ 3,886

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 99.0% 97.0% 98.0% 98.0% Writing 97.0% 99.0% 99.0% 98.0% 98.0% Mathematics 94.0% 95.0% 95.0% 96.0% 96.0% Language Arts Social Studies Science 88.0% 85.0% 96.0% 92.0% 92.0% All Tests 94.5% TEA Campus Rating Recognized Recognized Exemplary Exemplary Exemplary

126 FY 2008 – 2009 Budget Detailed Budget Analysis

P.H. Greene Elementary School 2903 Friendswood Link Road Webster, TX 77598

Mission Statement: Ensure that each student develops understanding, skill, and sensitivities that make it possible to participate successfully in a multi- cultural society. We strive to develop in each student the capacity to think critically and reason intelligently through a curriculum that is immersed in the fine arts and addresses individual learning styles. Principal: Stephanie McBride Greene Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 681 741 724 718 734 Attendance Rate 96.7% 96.7% 96.2% 96.8%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 42.0 48.0 42.5 49.0 56.0 Professional Support 4.0 4.0 5.0 4.0 4.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 48.0 54.0 49.5 55.0 62.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,556,763 $ 2,982,500 $ 3,298,358 $ 3,230,128 $ 3,407,775 6200 Professional/Contracted Services 208 1,050 2,070 1,770 1,770 6300 Supplies & Materials 41,792 51,263 50,144 34,695 35,509 6400 Other Operating Costs 6,409 7,175 9,180 11,080 13,550 6600 Capital Outlay - - - - - Total Expenditures $ 2,605,172 $ 3,041,988 $ 3,359,752 $ 3,277,673 $ 3,458,604 General Fund Expenditures/Student $ 3,826 $ 4,105 $ 4,641 $ 4,565 $ 4,712

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 97.0% 97.0% 96.0% 98.0% 98.0% Writing 98.0% 99.0% 95.0% 99.0% 99.0% Mathematics 97.0% 97.0% 95.0% 97.0% 97.0% Language Arts Social Studies Science 78.0% 93.0% 97.0% 92.0% 92.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

127 FY 2008 – 2009 Budget Detailed Budget Analysis

Walter Hall Elementary School 5931 Meadowside League City, TX 77573

Mission Statement: Hall students will be successful, responsible, lifelong learners. Principal: Stephanie King Hall Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 913 467 508 577 641 Attendance Rate 96.6% 97.0% 96.4% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 53.0 38.0 53.0 36.0 55.0 Professional Support 6.0 6.0 7.7 3.5 3.5 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 61.0 46.0 62.7 41.5 60.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,659,124 $ 2,400,700 $ 2,297,252 $ 2,488,795 $ 2,672,350 6200 Professional/Contracted Services 1,214 1,670 1,670 1,558 1,558 6300 Supplies & Materials 44,406 30,093 28,820 24,203 33,774 6400 Other Operating Costs 4,288 6,150 6,150 8,650 10,200 6600 Capital Outlay - - - - - Total Expenditures $ 2,709,032 $ 2,438,613 $ 2,333,892 $ 2,523,206 $ 2,717,882 General Fund Expenditures/Student $ 2,967 $ 5,222 $ 4,594 $ 4,373 $ 4,240

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 95.0% 96.0% 98.0% 98.0% Writing 95.0% 99.0% 93.0% 99.0% 99.0% Mathematics 95.0% 95.0% 97.0% 95.0% 95.0% Language Arts Social Studies Science 88.0% 92.0% 95.0% 95.0% 95.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

128 FY 2008 – 2009 Budget Detailed Budget Analysis

I.W. & Eleanor Hyde Elementary School 3700 FM 518 East

League City, TX 77573

Mission Statement: Provide a positive learning atmosphere that encourages cooperation between home, school, and community to ensure that our students will become responsible, successful citizens.

Principal: Kelly Chapman Hyde Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 691 703 726 695 693 Attendance Rate 97.1% 97.2% 96.7% 96.3%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 45.0 46.0 42.7 43.0 48.0 Professional Support 4.0 4.0 5.0 3.0 3.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 51.0 52.0 49.7 48.0 53.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,573,127 $ 2,905,325 $ 2,969,263 $ 3,054,802 $ 3,126,225 6200 Professional/Contracted Services 234 470 470 470 470 6300 Supplies & Materials 37,194 40,373 39,353 38,410 34,233 6400 Other Operating Costs 3,908 5,325 4,650 3,900 6,250 6600 Capital Outlay - - - - - Total Expenditures $ 2,614,463 $ 2,951,493 $ 3,013,736 $ 3,097,582 $ 3,167,178 General Fund Expenditures/Student $ 3,784 $ 4,198 $ 4,151 $ 4,457 $ 4,570

Texas Assessment of Knowledge & Skills (TAKS)

TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% 97.0% 98.0% 97.0% 97.0% Writing 99.0% 95.0% 98.0% 99.0% 99.0% Mathematics 87.0% 98.0% 98.0% 95.0% 95.0% Language Arts Social Studies Science 68.0% 94.0% 93.0% 95.0% 95.0% All Tests TEA Campus Rating Acceptable Exemplary Exemplary Recognized Recognized

129 FY 2008 – 2009 Budget Detailed Budget Analysis

C.D. Landolt Elementary School 2104 Pilgrims Point Friendswood, TX 77546

Mission Statement: Creating a Community of Learners Committed to Lifelong Guidelines.

Principal: Yolie Jones Landolt Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 719 728 703 722 767 Attendance Rate 97.0% 97.0% 96.6% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 43.0 49.0 31.0 50.0 65.0 Professional Support 5.0 5.0 18.0 3.5 3.5 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 50.0 56.0 51.0 55.5 70.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,454,348 $ 2,778,550 $ 2,990,546 $ 3,061,471 $ 3,409,330 6200 Professional/Contracted Services 1,675 1,030 1,130 1,480 1,520 6300 Supplies & Materials 41,237 48,146 50,080 41,627 39,205 6400 Other Operating Costs 4,532 8,225 8,900 9,800 12,600 6600 Capital Outlay - - - - - Total Expenditures $ 2,501,792 $ 2,835,951 $ 3,050,656 $ 3,114,378 $ 3,462,655 General Fund Expenditures/Student $ 3,480 $ 3,896 $ 4,339 $ 4,314 $ 4,515

Texas Assessment of Knowledge & Skills (TAKS)

TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 95.0% 95.0% 96.0% 98.0% 98.0% Writing 95.0% 99.0% 98.0% 98.0% 98.0% Mathematics 94.0% 90.0% 91.0% 93.0% 93.0% Language Arts Social Studies Science 82.0% 89.0% 93.0% 94.0% 94.0% All Tests TEA Campus Rating Acceptable Recognized Recognized Recognized Recognized

130 FY 2008 – 2009 Budget Detailed Budget Analysis

League City Elementary School 709 East Wilkins League City, TX 77573

Mission Statement: Promote, through a commitment to excellence in education, the academic, social and physical growth of each student within a safe, secure environment.

Principal: Carla Massa League City Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 526 515 598 570 584 Attendance Rate 96.4% 96.7% 95.8% 96.1%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 33.0 41.0 37.4 47.0 53.0 Professional Support 4.0 4.0 5.0 4.0 4.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel 6.0 6.0 6.0 - - Total 45.0 53.0 50.4 53.0 59.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 200-08 2008-09 6100 Payroll Costs $ 2,331,833 $ 2,639,890 $ 2,380,967 $ 2,975,155 $ 3,213,568 6200 Professional/Contracted Services 1,359 1,170 2,070 1,595 1,795 6300 Supplies & Materials 30,051 38,708 33,168 40,763 33,258 6400 Other Operating Costs 2,965 6,000 7,700 6,700 8,250 6600 Capital Outlay - - - - - Total Expenditures $ 2,366,208 $ 2,685,768 $ 2,423,905 $ 3,024,213 $ 3,256,871 General Fund Expenditures/Student $ 4,498 $ 5,215 $ 4,053 $ 5,306 $ 5,577

Texas Assessment of Knowledge & Skills (TAKS)

TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 88.0% 90.0% 93.0% 94.0% 94.0% Writing 95.0% 94.0% 96.0% 93.0% 93.0% Mathematics 89.0% 91.0% 88.0% 94.0% 94.0% Language Arts Social Studies Science 55.0% 79.0% 69.0% 87.0% 87.0% All Tests TEA Campus Rating Acceptable Recognized Acceptable Recognized Recognized

131 FY 2008 – 2009 Budget Detailed Budget Analysis

Margaret S. McWhirter Elementary 300 Pennsylvania Webster, TX 77598

Mission Statement: Provide exemplary professional development based upon sound educational performance throughout the school community that results in improved student achievement. Principal: Dr. Michael Marqez McWhirter Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 628 687 666 664 794 Attendance Rate 96.5% 95.7% 95.5% 95.7%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-90 Teachers 48.0 45.0 47.8 62.5 51.0 Professional Support 12.0 12.0 18.5 4.6 4.6 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 62.0 59.0 68.3 69.1 57.6

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $2,834,662 $ 2,834,662 $ 3,426,138 $ 3,635,998 $ 3,904,140 6200 Professional/Contracted Services 903 903 2,020 2,020 2,020 6300 Supplies & Materials 45,580 45,580 52,828 49,057 41,065 6400 Other Operating Costs 6,454 6,454 7,950 8,150 9,500 6600 Capital Outlay 0 - - - - Total Expenditures $2,887,599 $ 2,887,599 $ 3,488,936 $ 3,695,225 $ 3,956,725 General Fund Expenditures/Student $ 4,598 $ 4,203 $ 5,239 $ 5,565 $ 4,983

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 84.0% 84.0% 81.0% 88.0% 88.0% Writing 90.0% 92.0% 88.0% 91.0% 91.0% Mathematics 82.0% 78.0% 76.0% 85.0% 85.0% Language Arts Social Studies Science 54.0% 74.0% 77.0% 81.0% 81.0% All Tests TEA Campus Rating Acceptable Acceptable Acceptable Recognized Recognized

132 FY 2008 – 2009 Budget Detailed Budget Analysis

*Dr. Sandra Mossman Elementary 4050 Village Way League City, Tx 77573 Mission Statement: Foster the intellectual, social, emotional, and physical growth of each student through educational excellence in a positive environment.

Principal:

Elementary 26 will educate students in grades K-5 Campus Goals: District Goals: 1. To improve the academic achievement of every student Improved student achievement 2. To develop a learning partnership with parents, community and business Involvement of parents/community in education 3. To provide a safe, supportive environment for learning Safe and effective learning environments

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 00000 Attendance Rate 0.0% 0.0% 0.0% 0.0% 0.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - - - - Professional Support - - - - - School Leadership - - - - - Support Personnel - - - - - Total - - - - -

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 20080-9 6100 Payroll Costs $ - $ - $ - $ - $ - 6200 Professional/Contracted Services - - - - - 6300 Supplies & Materials - - - - 8,500 6400 Other Operating Costs - - - - 3,500 6600 Capital Outlay - - - - - Total Expenditures $ - $ - $ - $ - $ 12,000 General Fund Expenditures/Student

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% Writing 97.0% Mathematics 95.0% Language Arts Social Studies Science 96.0% All Tests TEA Campus Rating Recognized * Campus is set to open in the fall of 2009 133 FY 2008 – 2009 Budget Detailed Budget Analysis

North Pointe Elementary School 3200 Almond Creek Houston, TX 77059

Mission Statement: To care for, guide, and help our students to reach their full potential. Our goal is to provide an educational environment that meets the needs of each student and enables each to make a worthwhile contribution to the American Society.

Principal: Laurie O'Neill North Pointe Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 913 811 768 704 730 Attendance Rate 97.2% 97.3% 96.7% 97.1%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 54.0 50.0 51.4 50.0 45.0 Professional Support 6.0 6.0 8.5 3.5 3.5 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 62.0 58.0 61.9 55.5 50.5

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,180,253 $ 3,236,525 $ 3,266,107 $ 3,341,193 $ 3,343,025 6200 Professional/Contracted Services 328 3,319 3,570 2,320 2,020 6300 Supplies & Materials 25,997 43,783 41,348 36,924 31,203 6400 Other Operating Costs 4,375 13,563 10,000 10,225 14,800 6600 Capital Outlay - - - - - Total Expenditures $ 3,210,953 $ 3,297,190 $ 3,321,025 $ 3,390,662 $ 3,391,048 General Fund Expenditures/Student $ 3,517 $ 4,066 $ 4,324 $ 4,816 $ 4,645

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 98.0% 98.0% 98.0% 99.0% 99.0% Writing 99.0% 98.0% 99.0% 98.0% 98.0% Mathematics 96.0% 97.0% 98.0% 99.0% 99.0% Language Arts Social Studies Science 91.0% 90.0% 95.0% 98.0% 98.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

134 FY 2008 – 2009 Budget Detailed Budget Analysis

*Ralph Parr Elementary 1315 Highway 3 South League City, Tx 77573 Mission Statement: Foster the intellectual, social, emotional, and physical growth of each student through educational excellence in a positive environment.

Principal: Elementary 25 will educate students in grades K-5 Campus Goals: District Goals: 1. To improve the academic achievement of every student Improved student achievement 2. To develop a learning partnership with parents, community and business Involvement of parents/community in education 3. To provide a safe, supportive environment for learning Safe and effective learning environments

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 00000 Attendance Rate 0.0% 0.0% 0.0% 0.0% 0.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - - - - Professional Support - - - - - School Leadership - - - - - Support Personnel - - - - - Total - - - - -

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% Writing 97.0% Mathematics 95.0% Language Arts Social Studies Science 96.0% All Tests TEA Campus Rating Recognized * Campus is set to open in the fall of 2009. 135 FY 2008 – 2009 Budget Detailed Budget Analysis

*G. W. Robinson Elementary School 900 Reseda Houston, TX 77062 Mission Statement: Provide all students with an educational program which will allow them to achieve their full potentials academically, socially, and physically in order to be responsible citizens and contributing members of society.

Principal: Jim Stephens Robinson Elementary educates students in grades PreK-5

Campus Goals: District Goals: 1. To achieve and maintain TEA Exemplary rating. Improved student achievement 2. To provide a safe, supportive environment for learning. Involvement of parents/community in education process 3. To develop a learning partnership with parents, community, and business. Safe and effective learning environments 4. To develop the competence and leadership ability of staff.

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students - - 524 565 531 Attendance Rate 96.7% 96.1%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers - - 21.0 36.0 29.0 Professional Support - - - 7.2 7.2 School Leadership - - 2.0 2.0 2.0 Support Personnel - - 2.0 - - Total - - 25.0 45.2 38.2

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs - - $ 2,227,667 $ 2,682,110 $ 2,831,100 6200 Professional/Contracted Services - - 270 270 470 6300 Supplies & Materials - - 30,295 29,820 30,998 6400 Other Operating Costs - - 7,050 7,050 9,000 6600 Capital Outlay - - - - - Total Expenditures $ - $ - $ 2,265,282 $ 2,719,250 $ 2,871,568 General Fund Expenditures/Student $ - $ - $ 4,323 $ 4,813 $ 5,408

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 98.0% 98.0% Writing 95.0% 99.0% 99.0% Mathematics 96.0% 97.0% 97.0% Language Arts Social Studies Science 96.0% 96.0% 96.0% All Tests TEA Campus Rating Exemplary Exemplary Exemplary * Campus opened in August 2006

136 FY 2008 – 2009 Budget Detailed Budget Analysis

James H. Ross Elementary School 2401 West Main St.

League City, TX 77573

Mission Statement: Provide all students with an educational program which will allow them to achieve their full potentials academically, socially, and physically in order to be responsible citizens and contributing members of society.

Principal: Mark Smith Ross Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 599 608 609 671 731 Attendance Rate 96.5% 96.6% 96.2% 96.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 38.0 41.0 41.5 44.0 46.0 Professional Support 5.0 5.0 5.5 4.0 4.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 45.0 48.0 49.0 50.0 52.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,524,115 $ 2,765,475 $ 2,800,692 $ 2,922,679 $ 3,219,675 6200 Professional/Contracted Services 399 270 1,020 570 570 6300 Supplies & Materials 32,888 39,892 40,909 32,720 33,215 6400 Other Operating Costs 5,795 8,700 8,400 8,550 10,150 6600 Capital Outlay - - - - - Total Expenditures $ 2,563,197 $ 2,814,337 $ 2,851,021 $ 2,964,519 $ 3,263,610 General Fund Expenditures/Student $ 4,279 $ 4,629 $ 4,681 $ 4,418 $ 4,465

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 96.0% 96.0% 99.0% 99.0% Writing 93.0% 99.0% 97.0% 98.0% 98.0% Mathematics 94.0% 96.0% 96.0% 95.0% 95.0% Language Arts Social Studies Science 77.0% 90.0% 92.0% 98.0% 98.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Exemplary Exemplary

137 FY 2008 – 2009 Budget Detailed Budget Analysis

LaVace Stewart Elementary School 330 FM 2094 Kemah, TX 77565

Mission Statement: Form a partnership with parents and the community to prepare our diverse population of students to become life long learners in a nurturing, safe environment with high expectations so they will become responsible, productive citizens in an ever-changing society.

Principal: Brittani Moses Stewart Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 503 576 577 574 554 Attendance Rate 95.9% 96.5% 95.9% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 37.0 45.0 39.3 46.5 60.0 Professional Support 4.0 4.0 5.1 4.3 4.3 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 43.0 51.0 46.4 52.8 66.3

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,345,714 $ 2,471,400 $ 2,785,739 $ 2,951,397 $ 3,207,050 6200 Professional/Contracted Services 681 1,170 1,170 1,270 1,470 6300 Supplies & Materials 40,079 46,544 46,963 40,021 32,165 6400 Other Operating Costs 4,725 7,150 7,600 7,550 10,800 6600 Capital Outlay - - - - - Total Expenditures $ 2,391,199 $ 2,526,264 $ 2,841,472 $ 3,000,238 $ 3,251,485 General Fund Expenditures/Student $ 4,754 $ 4,386 $ 4,925 $ 5,227 $ 5,869

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 97.0% 97.0% 96.0% 99.0% 99.0% Writing 99.0% 97.0% 96.0% 97.0% 97.0% Mathematics 95.0% 98.0% 97.0% 98.0% 98.0% Language Arts Social Studies Science 74.0% 88.0% 95.0% 86.0% 86.0% All Tests 89.0% TEA Campus Rating Acceptable Exemplary138 Exemplary Recognized Recognized FY 2008 – 2009 Budget Detailed Budget Analysis

John F. Ward Elementary School 1440 Bouldercrest Houston, TX 77062

Mission Statement: Celebrate the uniqueness of each individual and enable all students and staff to achieve their highest potential through mutual respect, individual opportunity and support of school, home and community.

Principal: Kathy Gouger Ward Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 705 784 727 685 645 Attendance Rate 97.3% 97.3% 96.8% 97.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 43.0 50.0 43.5 45.5 47.0 Professional Support 5.0 6.0 7.9 4.6 4.6 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 50.0 58.0 53.4 52.1 53.6

General Fund Expenditures by Object Description 2004-2005 2005-2006 2006-07 2006-07 2008-09 6100 Payroll Costs $ 2,739,770 $ 3,037,825 $ 3,127,894 $ 3,098,016 $ 3,126,325 6200 Professional/Contracted Services 3,613 2,870 4,420 4,120 4,370 6300 Supplies & Materials 38,990 42,387 40,975 36,000 27,660 6400 Other Operating Costs 4,963 6,682 7,778 8,235 12,485 6600 Capital Outlay - - - - - Total Expenditures $ 2,787,336 $ 3,089,764 $ 3,181,067 $ 3,146,371 $ 3,170,840 General Fund Expenditures/Student $ 3,954 $ 3,941 $ 4,376 $ 4,593 $ 4,916

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-2005 2005-2006 2006-07 2007-08 2007-08 Reading 96.0% 97.0% 96.0% 99.0% 99.0% Writing 97.0% 99.0% 96.0% 99.0% 99.0% Mathematics 98.0% 99.0% 98.0% 99.0% 99.0% Language Arts Social Studies Science 96.0% 95.0% 95.0% 91.0% 91.0% All Tests TEA Campus Rating Exemplary Recognized Recognized Exemplary Exemplary

139 FY 2008 – 2009 Budget Detailed Budget Analysis

Arlyne & Alan Weber Elementary School 11955 Blackhawk Blvd. Houston, TX 77089

Mission Statement: Provide a positive learning environment in which each student is educated and equipped to develop and to grow into a successful learner. Principal: Teresa Snider Weber Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 582 745 800 873 829 Attendance Rate 96.6% 96.8% 96.5% 97.0%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 37.0 44.0 37.7 59.3 63.0 Professional Support 2.0 2.0 4.3 4.0 4.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel 11.0 - - - - Total 52.0 48.0 44.0 65.3 69.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,016,275 $ 2,832,000 $ 3,153,933 $ 3,294,483 $ 3,889,500 6200 Professional/Contracted Services 721 270 3,270 270 2,770 6300 Supplies & Materials 31,238 48,844 54,465 50,853 48,148 6400 Other Operating Costs 3,656 6,250 8,250 9,750 12,100 6600 Capital Outlay - - - - - Total Expenditures $ 2,051,890 $ 2,887,364 $ 3,219,918 $ 3,355,356 $ 3,952,518 General Fund Expenditures/Student $ 3,526 $ 3,876 $ 4,025 $ 3,843 $ 4,768

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 94.0% 93.0% 95.0% 95.0% 95.0% Writing 99.0% 96.0% 98.0% 98.0% 98.0% Mathematics 94.0% 95.0% 92.0% 93.0% 93.0% Language Arts Social Studies Science 82.0% 73.0% 85.0% 92.0% 92.0% All Tests 99.0% TEA Campus Rating Recognized Acceptable Recognized Recognized Recognized

140 FY 2008 – 2009 Budget Detailed Budget Analysis

Wedgewood Elementary School 4000 Friendswood Link Road Friendswood, TX 77546

Mission Statement: Provide a safe and supportive environment that will maximize opportunities for academic, social, and emotional growth so that all individuals can reach their full potential and become productive citizens. Principal: Ann Arrington Wedgewood Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 847 828 813 796 817 Attendance Rate 97.0% 96.7% 96.5% 96.6%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 50.0 50.0 48.0 52.5 59.0 Professional Support 7.0 7.0 8.0 5.0 5.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 59.0 59.0 58.0 59.5 66.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 3,200,274 $ 3,172,525 $3,332,843 $3,487,383 $3,757,450 6200 Professional/Contracted Services 1,310 1,170 1,070 1,070 970 6300 Supplies & Materials 46,744 48,385 46,685 44,821 44,401 6400 Other Costs 10,225 9,340 8,950 8,850 10,700 6600 Capital Outlay - - 0 0 0 Total Expenditures $ 3,258,553 $ 3,231,420 $ 3,389,548 $ 3,542,124 $ 3,813,521 General Fund Expenditures/Student $ 3,847 $ 3,903 $ 4,169 $ 4,450 $ 4,668

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 97.0% 97.0% 94.0% 94.0% Writing 99.0% 94.0% 98.0% 96.0% 96.0% Mathematics 98.0% 96.0% 95.0% 95.0% 95.0% Language Arts Social Studies Science 74.0% 87.0% 92.0% 94.0% 94.0% All Tests TEA Campus Rating Recognized Recognized Exemplary Recognized Recognized

141 FY 2008 – 2009 Budget Detailed Budget Analysis

G.H. Whitcomb Elementary School 900 Reseda

Houston, TX 77062

Mission Statement: Develop responsible citizens in a positive learning environment; to enable all students to achieve their highest potential, supported by teachers, parents and the community; and to prepare our students to live in a global society.

Principal: Dana Biddy Whitcomb Elementary educates students in grades PreK-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught PK-5 PK-5 PK-5 PK-5 PK-5 Total Students 758 828 837 774 722 Attendance Rate 96.9% 96.4% 95.8% 96.2%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 44.0 50.0 44.0 43.5 62.0 Professional Support 7.0 7.0 7.0 6.0 6.0 School Leadership 2.0 2.0 2.0 2.0 2.0 Support Personnel - - - - - Total 53.0 59.0 53.0 51.5 70.0

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,635,485 $ 2,934,825 $ 3,201,483 $ 3,405,246 $ 3,461,025 6200 Professional/Contracted Services 3,567 3,870 1,926 1,926 1,926 6300 Supplies & Materials 43,721 50,939 61,019 44,048 37,405 6400 Other Operating Costs 6,141 11,470 10,146 13,150 15,654 6600 Capital Outlay - - - - - Total Expenditures $ 2,688,914 $ 3,001,104 $ 3,274,574 $ 3,464,370 $ 3,516,010 General Fund Expenditures/Student #VALUE! $ 3,959 $ 3,955 $ 4,139 $ 4,543

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2003-04 2004-05 2006-07 2007-08 2008-09 Reading 87.0% 96.0% 96.0% 96.0% 96.0% Writing 96.0% 99.0% 93.0% 91.0% 91.0% Mathematics 86.0% 94.0% 93.0% 92.0% 92.0% Language Arts Social Studies Science 62.0% 90.0% 83.0% 86.0% 86.0% All Tests 84.0% TEA Campus Rating Recognized Recogn142 ized Recognized Recognized Recognized FY 2008 – 2009 Budget Detailed Budget Analysis

Edward H. White Elementary School 1708 Les Talley Drive El Lago, TX 77586 Mission Statement: Foster the intellectual, social, emotional, and physical growth of each student through educational excellence in a positive environment. Principal: Matt Paulson White Elementary educates students in grades K-5

Enrollment Description 2004-05 2005-06 2006-07 2007-08 2008-09 Grade Levels Taught K-5 K-5 K-5 K-5 K-5 Total Students 566 602 490 493 499 Attendance Rate 96.5% 96.5% 95.4% 96.1%

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Teachers 34.0 38.0 34.5 35.5 51.0 Professional Support 4.0 4.0 6.8 2.9 2.9 School Leadership 2.0 2.0 1.0 2.0 2.0 Support Personnel - - - - - Total 40.0 44.0 42.3 40.4 55.9

General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 20080-9 6100 Payroll Costs $ 2,209,637 $ 2,349,325 $ 2,380,967 $ 2,454,198 $ 2,562,025 6200 Professional/Contracted Services 1,841 970 2,070 1,470 1,470 6300 Supplies & Materials 48,502 35,014 33,168 25,949 26,315 6400 Other Operating Costs 6,143 7,300 7,700 7,100 8,750 6600 Capital Outlay - - - - - Total Expenditures $ 2,266,123 $ 2,392,609 $ 2,423,905 $ 2,488,717 $ 2,598,560 General Fund Expenditures/Student $ 4,004 $ 3,974 $ 4,947 $ 5,048 $ 5,208

Texas Assessment of Knowledge & Skills (TAKS) TAKS TAKS TAKS TAKS Projected Description 2004-05 2005-06 2006-07 2007-08 2008-09 Reading 96.0% 98.0% 99.0% 96.0% 96.0% Writing 93.0% 99.0% 92.0% 97.0% 97.0% Mathematics 95.0% 96.0% 95.0% 95.0% 95.0% Language Arts Social Studies Science 78.0% 94.0% 93.0% 96.0% 96.0% All Tests TEA Campus Rating Recognized Exemplary Exemplary Recognized Recognized

143 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of the Superintendent of Schools League City, TX 77573

Superintendent of Schools: Dr. Gregory Smith Departmental Description: The office of the Superintendent of Schools is responsible for the District's educational and operational performance. This department also includes the budget for the Board of Trustees.

Departmental Goals: District Goals: 1. Improved Student Achievement Improved Student Achievement

A. Implement priority items in Year One of the Clear Way academic build-out plan of the District.

B. Improve the District's accountability indicators to achieve an exemplary rating. Physical, social, and cognitive development for individual student 2. Physical, social, and cognitive development for individual student success success A. Increase the number of high school students enrolled in at least one advanced level course from 34% to 35%. B. Implement the Clear Horizons Early College High School with a program. 3. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Continue quarterly meetings with the PTA Community Council Executive Board.

B. Establish a School Boundary Advisory Committee to study zoning for new campuses. 4. Safe and effective learning environments Safe and effective learning environments

A. Develop a student-based model for anti-violence and anti-bullying at secondary campuses.

B. Develop a plan to integrate all security and life safety functions within the District. 5. Efficient and effective management of resources Efficient and effective management of resources

A. Maintain a balanced budget with designated reserves to meet key financial contingencies.

B. Review and update the District's five-year staffing plan. 6. Implementation of efficient and effective processes Implementation of efficient and effective processes

A. Evaluate the Child Nutrition Program.

B. Develop a long-range plan for technology.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 1.0 1.0 1.0 1.0 1.0 Support Personnel 1.0 1.0 1.0 1.0 1.0 Total 2.0 2.0 2.0 2.0 2.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 454,850 $ 264,350 $ 286,875 $ 335,700 $ 370,425 6200 Professional/Contracted Services $ 9,250 $ 10,000 $ 9,250 $ 4,500 $ 4,500 6300 Supplies & Materials $ 6,950 $ 7,800 $ 8,300 $ 7,800 $ 7,800 6400 Other Operating Costs $ 129,575 $ 127,975 $ 128,225 $ 44,125 $ 54,125 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ - $ - $ - $ - $ - Total Expenditures $ 600,625 $ 410,125 $432,650 $392,125 $436,850

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 17 $ 12 $ 12 $ 11 $ 10 144 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Curriculum & Instruction League City, TX 77573 Deputy Superintendent of Curriculum & Instruction: Dr. Steven Ebell Assistant Superintendent of Curriculum & Instruction: Tina Farrell Departmental Description:

The office of Curriculum and Instruction is responsible for all curriculum based programs throughout the District. It includes curriculum and staff development, student support services, bilingual education, data and evaluation, special education, gifted and talented education, visual and performing arts, at risk education, library and teacher services, and all core content functions.

Departmental Goals: District Goals:

1. Improved Student Achievement Improved Student Achievement

A. Develop a plan to increase the number of students receiving commended performance on TAKS.

B. Investigate, select and implement a District-wide cross-curricular research method for grades K-12. Physical, social, and cognitive development for individual student 2. Physical, social, and cognitive development for individual student success success A. Develop and implement the Distinguished Scholar Program.

B. Increase enrollment of at-risk students at Clear View Education Center from 200 to 275. 3. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Establish a committee to explore high school scheduling alternatives. 4. Safe and effective learning environments Safe and effective learning environments

A. Develop a student-based model for anti-violence and anti-bullying at secondary campuses.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 27.0 27.0 28.0 28.0 28.0 Support Personnel 22.0 22.0 23.0 23.0 23.0 Total 49.0 49.0 51.0 51.0 51.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 2,739,310 $ 3,028,475 $ 3,464,925 $ 4,686,350 $ 4,828,383 6200 Professional/Contracted Services $ 844,131 $ 954,770 $ 1,028,156 $ 903,803 $ 1,232,384 6300 Supplies & Materials $ 397,689 $ 435,487 $ 538,162 $ 919,534 $ 1,022,686 6400 Other Operating Costs $ 245,532 $ 328,025 $ 384,104 $ 397,305 $ 758,824 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ 6,000 $ 6,000 $ 6,000 $ 19,000 $ 13,000 Total Expenditures $ 4,232,662 $ 4,752,757 $5,421,347 $6,925,992 $7,855,277

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 123 $ 135 $ 155 $ 197 $ 183

145 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Secondary Education League City, TX 77573

Assistant Superintendent of Secondary Education: Alex Torrez Departmental Description: The office of Secondary Education is responsible for all secondary campus activities. This includes both intermediate and high schools, career and technology education, athletics, summer school, alternative education programs, and ROTC programs.

Departmental Goals: District Goals: 1. Improved Student Achievement Improved Student Achievement

A. Develop and implement the Professional Learning Communities Model at all high schools.

B. Maintain a maximum class load in core courses of no more than 150 students per teacher.

C. Maintain a student-teacher ratio of 15 to 1 in high school Algebra I classes. Physical, social, and cognitive development for individual student 2. Physical, social, and cognitive development for individual student success success A. Implement Phase Two of the "Grad with Your Class Plan" to increase student completion rates.

B. Implement the Clear Horizons Early College High School. 3. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Establish a committee to explore high school scheduling alternatives. 4. Safe and effective learning environments Safe and effective learning environments

A. Develop a student-based model for anti-violence and anti-bullying at secondary campuses.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 5.0 7.0 7.0 7.0 7.0 Support Personnel 3.0 3.0 3.0 3.0 3.0 Total 8.0 10.0 10.0 10.0 10.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 6100 Payroll Costs $ 1,554,875 $ 1,686,265 $ 1,910,100 $ 2,730,551 $ 2,006,655 6200 Professional/Contracted Services $ 69,973 $ 167,013 $ 181,979 $ 2,730,551 $ 195,969 6300 Supplies & Materials $ 149,695 $ 133,381 $ 142,263 $ 2,730,551 $ 187,806 6400 Other Operating Costs $ 128,328 $ 123,660 $ 130,438 $ 2,730,551 $ 126,798 6500 Debt Service $ - $ - $ - $ 2,730,551 $ - 6600 Capital Outlay $ 6,000 $ 84,000 $ 6,000 $ 2,730,551 $ 4,500 Total Expenditures $ 1,908,871 $ 2,194,319 $ 2,370,780 $16,383,306 $2,521,728

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 56 $ 62 $ 68 $ 466 $ 59

146 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Elementary Education League City, TX 77573

Assistant Superintendent of Elementary Education: Holly Hughes Departmental Description: The office of Support Services incorporates all major operating departments in the District. This includes food service, maintenance & custodial operations, facilities, transportation, and security.

Departmental Goals: District Goals: 1. Improved Student Achievement Improved Student Achievement

A. Continue Cognitive Coach training for elementary principals.

B. Develop a plan to move all elementary campus libraries to a TEA rating of exemplary. Physical, social, and cognitive development for individual student 2. Physical, social, and cognitive development for individual student success success A. Implement a pilot program for full-day pre-kindergarten. 3. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Establish a School Boundary Committee to study zoning for new elementary campuses.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 1.0 1.0 1.0 1.0 1.0 Support Personnel 1.0 1.0 1.0 1.0 1.0 Total 2.0 2.0 2.0 2.0 2.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2007-08 6100 Payroll Costs $ 144,950 $ 163,525 $ 256,400 $ 3,690 $ 52,077 6200 Professional/Contracted Services $ 6,732 $ 46,412 $ 24,700 $ 28,400 $ 11,800 6300 Supplies & Materials $ 53,446 $ 44,047 $ 17,775 $ 70,639 $ 56,718 6400 Other Operating Costs $ 5,473 $ 7,351 $ 8,305 $ 31,535 $ 17,155 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ - $ - $ - $ - $ - Total Expenditures $ 210,601 $ 261,335 $307,180 $134,264 $137,750

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 6 $ 7 $ 9 $ 4 $ 3

147 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Policy and Legal Affairs League City, TX 77573

Director of Policy and Legal Affairs: Sheila Haddock Departmental Description: The office of Policy and Legal Affairs incorporates all legal and policy issues. This department works closely with our district attorneys on all legal issues, develops policy and heads the Policy Committee.

Departmental Goals: District Goals: 1. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Establish a School Boundary Committee to study zoning for new elementary campuses. 2. Safe and Effective Learning Environments Safe and effective learning environments A. Develop a comprehensive student and staff identification badging system.

B. Develop and implement a process for the enforcement of attendance and residency policies. 3. Implementation of efficient and effective processes Implementation of efficient and effective processes A. Revise and implement a process for addressing appropriate legal issues internally and ensuring efficient management of outside legal counsel.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 1.0 1.0 1.0 1.0 1.0 Support Personnel 1.0 1.0 1.0 1.0 1.0 Total 2.0 2.0 2.0 2.0 2.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 103,200 $ 120,600 $ 131,800 $ 235,100 $ 212,200 6200 Professional/Contracted Services $ 300 $ 500 $ - $ 5,345 $ 3,900 6300 Supplies & Materials $ 1,350 $ 1,825 $ 2,945 $ 19,655 $ 5,270 6400 Other Operating Costs $ 1,475 $ 3,675 $ 3,055 $ - $ 15,830 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ - $ - $ - $ - $ - Total Expenditures $ 106,325 $ 126,600 $137,800 $260,100 $237,200

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 3 $ 4 $ 4 $ 7 $ 6

148 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of the Chief Financial Officer League City, TX 77573

Chief Financial Officer: Paul McLarty Departmental Description:

The office of Chief Financial Officer incorporates the major business functions of the District. This includes the Department of Finance, Department of Purchasing, Department of Benefits and Risk Management, warehouse operations, Printing Services, Teachers Center and the Tax Office.

Departmental Goals: District Goals: 1. Safe and Effective Learning Environments Safe and effective learning environments

A. Develop a business disaster recovery program. 2. Efficient and effective management of resources Efficient and effective management of resources

A. Maintain a balanced budget.

B. Upgrade the Pentamation financial software.

C. Review and update the District's five-year staffing plan.

D. Continue implementation of the District's market-driven salary and stipend plans. 3. Implementation of efficient and effective processes Implementation of efficient and effective processes

A. Continue internal management reviews of selected departments through scheduled audits.

B. Implement a paperless payroll program

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 13.0 13.0 13.0 15.0 15.0 Support Personnel 26.0 26.0 28.0 34.0 34.0 Total 39.0 39.0 41.0 49.0 49.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 1,937,000 $ 2,038,450 $ 1,862,750 $ 2,316,875 $ 2,605,200 6200 Professional/Contracted Services $ 1,831,617 $ 1,657,854 $ 1,622,384 $ 1,693,926 $ 1,690,617 6300 Supplies & Materials $ 88,441 $ 88,302 $ 83,959 $ 91,387 $ 86,047 6400 Other Operating Costs $ 59,914 $ 68,063 $ 84,209 $ 158,051 $ 157,700 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ 9,000 $ - $ - $ - $ - Total Expenditures $ 3,925,972 $ 3,852,669 $3,653,302 $4,260,239 $4,539,564

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 114 $ 109 $ 104 $ 121 $ 106

149 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Public Information League City, TX 77573

Director of Public Information: Elaina Polsen Departmental Description: The office of Public Information incorporates all internal and external communications district-wide. It includes External Affairs, Business and Community Partnerships and Public Information.

Departmental Goals: District Goals: 1. Involvement of parents/community in education process Involvement of parents/community in education process A. Establish the superintendent's speaking tour schedule to communicate to the community. B. Implement a strategic plan that expands CCISD's local and state legislative outreach. C. Expand external communications by launching a weekly superintendent radio address.

D. Establish a monthly electronic newsletter

E. Establish a District news and information program to air on local access cable channels.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 5.0 5.0 6.0 5.0 5.0 Support Personnel 7.0 7.0 8.0 2.0 2.0 Total 12.0 12.0 14.0 7.0 7.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 302,035 $ 354,525 $ 403,275 $ 414,775 $ 397,900 6200 Professional/Contracted Services $ 15,760 $ 50,210 $ 49,850 $ 50,700 $ 35,700 6300 Supplies & Materials $ 18,547 $ 28,866 $ 354,525 $ 69,000 $ 77,000 6400 Other Operating Costs $ 15,124 $ 21,174 $ 21,174 $ 31,000 $ 38,000 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ - $ - $ - $ - $ - Total Expenditures $ 351,466 $ 454,775 $828,824 $565,475 $548,600

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 10 $ 13 $ 24 $ 16 $ 13

150 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Human Resources League City, TX 77573

Assistant Superintendent of Human Resources: Dr. David O'Neill Departmental Description: The office of Human Resources incorporates recruiting and retention efforts district-wide. It includes the teacher mentor program, elementary, secondary and support staff recruitment, and Title X activities.

Departmental Goals: District Goals: 1. Improved Student Achievement Improved Student Achievement A. Maintain 97% of teachers in core academic areas identified as "highly qualified" per the No Child Left Behind Act. 2. Efficient and effective management of resources Efficient and effective management of resources

A. Review and update the District's five-year staffing plan

B. Evaluate non-exempt pay scales discrepancies between departments.

C. Continue implementation of the District's market-driven salary and stipend plans. 3. Implementation of efficient and effective processes Implementation of efficient and effective processes A. Implement the procedures, policies and administrative guidelines outlined in the District publication "Non- Exempt Employees' Guide to Payroll Matters" B. Implement a paperless payroll program

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 6.0 6.0 6.0 6.0 6.0 Support Personnel 12.0 12.0 12.0 13.0 13.0 Total 18.0 18.0 18.0 19.0 19.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 592,175 $ 657,450 $ 842,400 $ 1,057,100 $ 1,092,900 6200 Professional/Contracted Services $ 49,630 $ 48,800 $ 77,800 $ 44,950 $ 44,950 6300 Supplies & Materials $ 20,950 $ 18,300 $ 18,300 $ 23,150 $ 23,150 6400 Other Operating Costs $ 35,300 $ 36,900 $ 46,900 $ 74,900 $ 74,900 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ - $ - $ - $ - $ - Total Expenditures $ 698,055 $ 761,450 $985,400 $1,200,100 $1,235,900

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 20 $ 22 $ 28 $ 34 $ 29

151 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of the Chief Technology Officer League City, TX 77573

Chief Technology Officer: Chad Stevens Departmental Description: The office of Technology Services incorporates all computing and communications activities district-wide. This includes network infrastructure, the District's fiber optic computing and telephone network, data management, and teacher technology staff.

1. Improved Student Achievement Improved Student Achievement A. Implement Phase One of the Integrated Learning Portal and Curriculum Management Solution for online learning opportunities. B. Implement Year One of the continuing professional education model and develop the online staff development portal. Physical, social and cognitive development for individual student 2. Physical, social and cognitive development for individual student success success A. Implement "T-REX," state-mandated electronic transcript system. 3. Safe and effective learning environments Safe and effective learning environments

A. Develop a business disaster recovery plan 3. Implementation of efficient and effective processes Implementation of efficient and effective processes A. Certify business best practices and design a long-range solution for system upgrades, integration and data warehousing. B. Develop a long-range plan for technology.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 13.0 14.0 14.0 Support Personnel 5.0 5.0 5.0 Technology Support 27.0 27.0 30.0 Total 45.0 46.0 49.0 - - General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2007-08 2008-09 6100 Payroll Costs $ 8,424,500 $ 8,553,825 $ 9,624,700 $ 10,473,000 $ 2,663,000 6200 Professional/Contracted Services $ 1,435,947 $ 1,424,941 $ 1,395,761 $ 1,542,561 $ 1,020,932 6300 Supplies & Materials $ 1,480,713 $ 1,555,127 $ 1,697,693 $ 1,735,133 $ 503,930 6400 Other Operating Costs $ 20,340 $ 21,932 $ 14,932 $ 14,932 $ 41,499 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ 8,000 $ 8,000 $ 135,300 $ 135,300 $ 935,000 Total Expenditures $ 11,369,500 $ 11,563,825 $12,868,386 $13,900,926 $5,164,361

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 331 $ 327 $ 368 $ 396 $ 121

152 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Office of Support Services League City, TX 77573

Associate Superintendent of Support Services: Ron McPherson Departmental Description: The office of Support Services incorporates all major operating departments in the District. This includes food service, maintenance & custodial operations, facilities, transportation, and security.

Departmental Goals: District Goals: 1. Involvement of parents/community in the education process Involvement of parents/community in the education process

A. Establish a School Boundary Advisory Committee to study zoning for anticipated new campuses. 2. Safe and Effective Learning Environments Safe and effective learning environments

A. Develop a plan to integrate all security and life safety functions within the District.

B. Implement the District dispatching plan for emergency communication coordination.

C. Implement a security audit of all campuses, including intruder surveys.

D. Implement one district (internal) tabletop emergency drill and one joint emergency drill with a local entity.

3. Efficient and effective management of resources Efficient and effective management of resources

A. Implement Phase One of the bus routing software, Transfinder.

B. Continue to implement the District's energy management program through the Energy Manager.

C. Implement the first year of Bonds 2007 and the District's capital plan.

D. Update the capital plan based on a comprehensive demographic study. 4. Implementation of efficient and effective processes Implementation of efficient and effective processes

A. Evaluate the Child Nutrition Program.

B. Implement Phase One of the utilization of District custodial standards.

Employee FTE’s Description 2004-05 2005-06 2006-07 2007-08 2008-09 Professional Support 8.5 8.5 9.7 10.0 10.0 Support Personnel 10.0 11.0 12.0 15.0 15.0 Auxiliary Personnel 930.0 940.0 954.7 960.0 960.0 Total 948.5 959.5 976.3 985.0 985.0 General Fund Expenditures by Object Description 2004-05 2005-06 2006-07 2006-07 2006-07 6100 Payroll Costs $ 15,946,176 $ 16,317,175 $ 17,550,775 $ 19,322,626 $ 21,530,273 6200 Professional/Contracted Services $ 2,399,831 $ 2,761,616 $ 2,634,358 $ 2,683,981 $ 2,878,052 6300 Supplies & Materials $ 2,544,054 $ 2,769,737 $ 3,203,090 $ 4,085,053 $ 5,378,477 6400 Other Operating Costs $ 72,625 $ 77,695 $ 101,006 $ 123,416 $ 125,016 6500 Debt Service $ - $ - $ - $ - $ - 6600 Capital Outlay $ 195,000 $ 203,000 $ 153,000 $ 280,300 $ 1,070,300 Total Expenditures $ 21,157,686 $ 22,129,223 $23,642,229 $26,495,376 $30,982,118

Total Students 34,349 35,316 34,972 35,130 42,825 General Fund Expenditures/Student $ 616 $ 627 $ 676 $ 754 $ 723

153 FY 2008 – 2009 Budget Detailed Budget Analysis

154 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ The Economy

Economy and Demographics The following information has been derived from various sources, including the Texas Municipal Reports published by the Municipal Advisory Council of Texas, U.S. Census data, area Chamber of Commerce and District officials. While such sources are believed to be reliable, no representation is made as to the accuracy thereof.

Industrial Economic Base The economy of the District and its surrounding area is diversified, with oil and gas as the base of industrial activity. The abundance of key natural resources along the Texas Gulf Coast has created the country's greatest concentration of petrochemical complexes within the overall coastal area. Though District industries are largely petrochemical in nature, they are not exclusively so. Originally a rice farming and ranching area, the lakes and waterways of the District offer not only boating and fishing sports and revenues from recreational tourist facilities, but also represents a hub of industrial development lining the nearby Houston Ship Channel.

The Johnson Space Center of the National Aeronautics and Space Administration ("NASA"), which is currently responsible for NASA's space shuttle and space station projects, is an important part of the Clear Lake area economy, both as an employer of more than 3,000 civil service employees and approximately 13,500 local contractors. In addition, Space Center Houston, a visitor complex and educational facility, has approximately 800,000 visitors annually. The rate and extent of continued development within the Clear Lake Area could be influenced by the degree of continued federal funding of Johnson Space Center projects.

A major employment base in the general area has been the Bayport Industrial Development ("Bayport"), a planned industrial development of approximately 10,750 acres by Exxon Land Development with approximately 62 industrial plants in operation. Bayport is located in southeast Harris County approximately 23 miles from the central business district of the City of Houston. It includes a 40-foot deep water port and channel facility connected to the Houston Ship Channel, barge dock facilities, a pipeline network and railroad service lines.

The Baybrook Mall serves the southeast metropolitan Houston Area and Galveston County. The mall contains 1.1 million leasable square feet and is anchored by four major department stores.

Presently serving the Clear Lake area are three general hospitals, Clear Lake Regional Medical Center in the City of Webster with 482 beds; Memorial Hermann Southeast Hospital in the City of Houston with 256 beds; and St. John's Hospital in the City of Nassau Bay with 135 beds.

Residential Development The major residential developers within the District are Friendswood Development Company, Limited and South Shore Harbour Development, Limited. The Friendswood Development Company, Limited is currently selling homes in 2 subdivisions in the Clear Lake area which are in the District. South Shore Harbour Development, Limited has developed 5 residential subdivisions in the master-planned South Shore Harbour development. There are a number of additional residential subdivisions within the District which are or have been developed by other developers.

Educational Facilities Also serving the area is the University of Houston-Clear Lake, constructed on a 524-acre site in the District, with enrollment of approximately 8,000 students. As an upper-level institution, University of Houston-Clear Lake works closely with the nine community college districts along the upper Gulf Coast of Texas. Classes start at the junior level of college scholastics.

155 FY 2008 – 2009 Budget Detailed Budget Analysis

The San Jacinto Junior College District operates a South Campus on 13735 Beamer Road with a current enrollment of approximately 7,200 students. The San Jacinto College Clear Creek Extension Center is located at Clear Creek High School in League City. Students living in the Clear Creek Independent School District pay in-district fees for classes taken at the extension center. Classes are offered Tuesday through Thursday evenings.

The College of the Mainland in Texas City, Texas is a junior college, which also offers mandatory continuing education classes for realtors and travel agents in the Clear Lake area at a local hotel and travel agency. Currently, there are approximately 3,940 full time students enrolled.

Harris County Economic Base A significant portion of the District is located in Harris County (the "County"), the most populous county in the State of Texas, with a 2000 estimated population of 3,400,578, an increase of approximately 20.66% since 1990. The County's economy is based on industry, mineral production, shipping and agriculture.

Harris County is a highly industrialized county with manufacturing plants producing petroleum refining, chemicals, food, fabricated metal products, non-electric machinery, primary metals, scientific instruments, paper and allied products and printing and publishing. Harris County is also a corporate management center, a center of energy, space and medical research centers and a center of international business. Harris County contains the nation's largest concentration of petrochemical plants and the largest U.S. wheat exporting port which is among the top U.S. ports in the value of foreign trade and total tonnage.

Galveston County Economic Base Galveston County is located on the Gulf Coast. Port activities dominate the economy but also included are insurance and finance centers, petrochemical plants, varied manufacturing, tourism, medical educational center, oceanographic research center, ship building, and commercial fishing. Galveston County had a 1990 United States Census population of 217,339 which grew to 250,158 in 2000, an increase of 15.10% since 1990. According to the 2005-2006 Texas Almanac, Galveston, the county seat, is also the largest city with a population level of 57,247 and League City follows as the next largest city with a population of 45,444.

The Texas State Legislature designated Galveston County as one of three counties to operate a Greyhound Race Track in the State of Texas. The other tracks have been opened in Harlingen and Corpus Christi. Gulf Greyhound Park (the “Greyhound Park”) is the world’s largest and #1 greyhound racing operation. During its first year of operation the Greyhound Park broke the all-time industry records for attendance and wagering as over two million race fans visited the park during that year. Since November 1992, over ten million fans have attended the Greyhound Park and over $1.4 billion dollars have been paid out to winners.

The Kemah Boardwalk, located 20 miles from downtown Houston, has over 4.5 million visitors annually. The Kemah Boardwalk features restaurants like Joe’s Crab Shack, The Flying Dutchman, Cadillac Bar, Landry’s Seafood House, Saltgrass Steakhouse, Kemah Crabhouse, Babin’s Seafood House, and the Aquarium Restaurant featuring a 50,000-gallon aquarium brimming with marine life. There are dancing fountains, midway games, amusement park rides and retail specialty shops. The seaside hotel, The Boardwalk Inn, provides upscale accommodations on the Boardwalk. Adjacent to the Kemah Boardwalk is the Kemah Lighthouse Shopping District featuring over 30 specialty shops, numerous Bed and Breakfast accommodations, and a number of other restaurants.

156 FY 2008 – 2009 Budget Detailed Budget Analysis

Communities Located Entirely within the District

1980(a) 1990(b) 2000 (c) Incorporated Population Population Population

Clear Lake Area (City of Houston) (d) 22,000 60,000 64,000 League City 16,578 30,159 45,444 Seabrook 4,670 6,685 9,443 Webster 2,405 4,678 9,083 Nassau Bay 4,526 4,320 4,170 El Lago 3,129 3,269 3,705 Taylor Lake Village 3,669 3,394 3,694 Kemah 1,304 1,094 2,330 Clear Lake Shores 755 1,096 1,205

Small portions of the City of Friendswood and Pasadena are also located within the District.

Source: Clear Creek Independent School District OFFICIAL STATEMENT dated April 24, 2008

ECONOMIC AND GROWTH INDICATORS

- U.S. Census of Population -

Galveston County City of Houston Harris County Number % Change Number % Change Number % Change 1930 64,401 +21.17% 292,352 +111.43% 359,328 +92.50% 1940 81,173 +26.04 384,514 +31.52 528,961 +47.20 1950 113,066 +39.29 596,163 +55.04 806,701 +52.50 1960 140,364 +24.14 938,219 +57.38 1,243,158 +52.10 1970 169,812 +20.98 1,232,802 +31.40 1,741,912 +40.10 1980 195,940 +15.39 1,594,086 +29.31 2,409,544 +38.33 1990 217,339 +10.92 1,637,859 +02.75 2,818,199 +16.96 2000 250,158 +15.10 1,953,631 +19.28 3,400,578 +20.66

Source: Clear Creek Independent School District OFFICIAL STATEMENT dated April 24, 2008

157 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ State and Local Funding of School Districts in Texas

Recent Litigation Relating to the Texas Public School Finance System On April 9, 2001, four property wealthy districts filed suit in the 250th District Court of Travis County, Texas (the “District Court”) against the Texas Education Agency, the Texas State Board of Education, the Texas Commissioner of Education (the “Commissioner”) and the Texas Comptroller of Public Accounts in a case styled West Orange-Cove Consolidated Independent School District, et al. v. Neeley, et al. The plaintiffs alleged that the $1.50 maximum maintenance and operations tax rate had become in effect a state property tax, in violation of article VIII, section 1-e of the Texas Constitution, because it precluded them and other school districts from having meaningful discretion to tax at a lower rate. Forty school districts intervened alleging that the Texas public school finance system (the “Finance System”) was inefficient, inadequate, and unsuitable, in violation of article VII, section 1 of the Texas Constitution, because the State of Texas (the “State”) did not provide adequate funding. This case has twice reached the Texas Supreme Court (the “Supreme Court”), which rendered decisions in the case on May 29, 2003 (“West Orange-Cove I”) and November 22, 2005 (“West Orange-Cove II”). After the remand by the Supreme Court back to the District Court in West Orange- Cove I, 285 other school districts were added as plaintiffs or interveners. The plaintiffs joined the interveners in their article VII, section 1 claims that the Finance System was inadequate and unsuitable, but not in their claims that the Finance System was inefficient. On November 30, 2004, the final judgment of the District Court was released in connection with its reconsideration of the issues remanded to it by the Supreme Court in West Orange-Cove I. In that case, the District Court rendered judgment for the plaintiffs on all of their claims and for the interveners on all but one of their claims.

In West Orange-Cove II, the Supreme Court’s holding was twofold: (1) that the local M&O Tax had become a state property tax in violation of article VIII, section 1-e of the Texas Constitution and (2) the deficiencies in the Finance System did not amount to a violation of article VII, section 1 of the Texas Constitution.

In reaching its first holding, the Supreme Court relied on evidence presented in the District Court to conclude that school districts did not have meaningful discretion in levying the M&O Tax. In reaching its second holding, the Court, using a test of arbitrariness determined that: the public education system was “adequate,” since it is capable of accomplishing a general diffusion of knowledge; the Finance System was not “inefficient,” because school districts have substantially equal access to similar revenues per pupil at similar levels of tax effort, and efficiency does not preclude supplementation of revenues with local funds by school districts; and the Finance System does not violate the constitutional requirement of “suitability,” since the system was suitable for adequately and efficiently providing a public education.

Funding Changes in Response to West Orange-Cove II In response to the decision in West Orange-Cove II, the Texas Legislature (the “Legislature”) enacted House Bill 1 (“HB 1”), which made substantive changes in the way the Finance System is funded, as well as other legislation which, among other things, established a special fund in the Texas state treasury to be used to collect new tax revenues that are dedicated under certain conditions for appropriation by the Legislature to reduce M&O Tax rates, broadened the State business franchise tax, modified the procedures for assessing the State motor vehicle sales and use tax and increased the State tax on tobacco products (HB 1 and other described legislation are collectively referred to as the “Reform Legislation”). The Reform Legislation generally became effective at the beginning of the 2006-07 fiscal year of each district.

Recent Litigation Relating to House Bill 1 On June 14, 2006, an entity called Citizens Lowering Our Unfair Taxes PAC ("CLOUT") filed a lawsuit in the 345th District Court (the "District Court") in Travis County, Texas against the Texas Lieutenant

158 FY 2008 – 2009 Budget Detailed Budget Analysis

Governor, the Speaker of the Texas House of Representatives, the Texas Comptroller of Public Accounts, the State of Texas and the Legislative Budget Board. The plaintiffs allege that various violations of Article VIII, Section 22(a) of the Texas Constitution and Chapter 316 of the Texas Government Code have occurred and have resulted in unconstitutional and illegal spending by the State government, including the appropriations made for the Texas public school Finance System under HB 1.

Among other things, the plaintiffs seek a declaratory judgment that the methodology used to establish the maximum amount of non-dedicated State revenues subject to appropriation in the 2006-2007 State biennium, and the amount appropriated by the Legislature in HB 1 to fund the Finance System during such biennium, violates Article VIII, Section 22(a), which provides that, unless a resolution is adopted by the Legislature to override the spending limit "[i]n no biennium shall the rate of growth of appropriations from state tax revenues not dedicated by this constitution exceed the estimated rate of growth of the state’s economy."

On August 7, 2006, the District Court dismissed the CLOUT Lawsuit on jurisdictional grounds. In its opinion dated May 25, 2007, the State’s Third Court of Appeals affirmed in part and reversed in part the District Court’s dismissal of the CLOUT Lawsuit, and remanded the case to the District Court for additional review.

♦ Current Public School Finance System

General The following description of the Finance System includes the provisions of the Reform Legislation. For a more complete description of school finance and fiscal management in the State, reference is made to Vernon’s Texas Codes Annotated, Education Code, and Chapters 41 through 46, as amended.

The Reform Legislation, which generally became effective at the beginning of the 2006-07 fiscal year of each district, made substantive changes to the manner in which the Finance System is funded, but did not modify the basic structure of the Finance System. The changes to the manner in which the Finance System is funded are intended to reduce local M&O Tax rates by one third over two years, with M&O Tax levies declining by approximately 11% in fiscal year 2006-07 and approximately another 22% in fiscal year 2007-08. Additional State funding needed to offset local tax rate reductions must be generated by the modified State franchise, motor vehicle and tobacco taxes or any other revenue source appropriated by the Legislature. The Legislative Budget Board (LBB), projected that the Reform Legislation will be under funded from the Reform Legislation revenue sources by a cumulative amount of $25 billion over fiscal years 2006-07 through 2010-11, although State surpluses were appropriated to offset the revenue shortfall in fiscal year 2006-07 and for the 2008-09 State biennium, and the shortfall could be addressed in future years if the Reform Legislation, particularly the ad valorem tax compression measures of HB 1, should prove to be an economic stimulus for the State or if there is sustained growth in the economy of the State that generates greater State revenues than were originally forecast by the LBB.

Under the Finance System, school districts are guaranteed to receive State funding necessary to provide the district the greater of (A) the amount of State and local revenue per student for the district in the 2005-06 fiscal year, (B) the amount of State and local revenue per student the district would have been entitled to for the 2006-07 fiscal year based on the funding elements in place prior to the Reform Legislation using the M&O Tax rate the district adopted for the 2005-06 fiscal year, or (C) the amount of State and local revenue per student the district would have been entitled to for the 2006-07 fiscal year based on the funding elements in place prior to the Reform Legislation using an M&O Tax rate that would allow the district to maintain total revenue per student under the funding elements in place prior to the Reform Legislation. In addition to the greater of (A), (B) or (C), HB 1 provided a $2,500 salary allotment to fund a salary increase for teachers and certain other employees and a high school student allotment of $275 per student in average daily attendance for dropout prevention and

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college readiness programs. During the 2007 Regular Legislative Session, which convened on January 9, 2007 and adjourned on May 28, 2007, a new funding allotment was created and funded by the Legislature to provide an average $425 salary increase for educators at each school district. State funds appropriated to provide districts the guaranteed amount may only be used for operating and maintenance purposes and not to fund facilities, debt service or other purposes. If a district adopts an M&O Tax rate in any fiscal year below a rate equal to the state compression percentage for the district in that year multiplied by the M&O Tax rate adopted by the district for the 2005 06 fiscal year, the district’s guaranteed amount is reduced in a proportionate amount. If a district would receive more State and local revenue from the Tier I and Tier II allotments and wealth equalization than the guaranteed amount described above, the amount of State funding will be reduced by the amount of such surplus over the guaranteed amount described above.

In general terms, funds are allocated to districts in a manner that requires districts to “compress” their tax rates in order to receive increased State funding at a level that equalizes local tax wealth at the 88th percentile yield for the 2006-07 fiscal year. A basic component of the funding formulas is the state compression percentage. The state compression percentage is 88.67% for fiscal year 2006-07 and 66.67% for fiscal year 2007-08.

State Funding for Local School Districts To limit disparities in school district funding abilities, the Finance System (1) compels districts with taxable property wealth per weighted student higher than the equalized wealth level to reduce their wealth to such amount or to divert a portion of their tax revenues to other districts as described below and (2) provides various State funding allotments, including a basic funding allotment and other allotments for “enrichment” of the basic program, for debt service tax assistance and for new facilities construction.

The Finance System provides for (1) State guaranteed basic funding allotments per student (Tier I) and (2) State guaranteed revenues per student for each cent of local tax effort to provide operational funding for an enriched educational program (Tier II). In addition, to the extent funded by the Legislature, the Finance System includes, among other funding allotments, an allotment to subsidize existing debt service up to certain limits (EDA), the Instructional Facilities Allotment (IFA), and an allotment to pay operational expenses associated with the opening of a new instructional facility. Tier I, Tier II, EDA and IFA are generally referred to as the Foundation School Program. Tier I and Tier II allotments and prior year IFA allotments are generally required to be funded each year by the Legislature. EDA and future year IFA allotments supplement local ad valorem taxes levied for debt service on bonds issued by districts to construct acquire and improve facilities and are generally subject to appropriation by the Legislature.

Tier I allotments are intended to provide all districts a basic program of education rated academically acceptable and meeting other applicable legal standards. If needed, the State will subsidize local tax receipts at a tax rate of $.86 per $100 of property value to ensure that the cost to a district of the basic program is met. Tier II allotments are intended to guarantee each school district that is not subject to the wealth transfer provisions described below an opportunity to supplement that program at a level of its own choice, however Tier II allotments may not be used for the payment of debt service or capital outlay. The cost of the basic program is based on an allotment per student known as the Tier I Basic Allotment. The Tier I Basic Allotment is adjusted for all districts by a cost-of-living factor known as the cost of education index. In addition, a district-size adjustment further adjusts the Tier I Basic Allotment for districts that have less than 5,000 students in average daily attendance.

The IFA guarantees each school district a specified amount per student (the IFA Guaranteed Yield) in State and local funds for each cent of tax effort to pay principal of and interest on eligible bonds issued to construct, acquire, renovate or improve instructional facilities. To receive an IFA, a school district must apply to the Commissioner in accordance with rules adopted by the Commissioner before issuing the bonds to be paid with State assistance. If the total amount appropriated by the State for IFA in a year is less than the amount of money school districts applying for IFA are entitled to for that year, 160 FY 2008 – 2009 Budget Detailed Budget Analysis

districts applying will be ranked by the Commissioner by wealth per student, and State assistance will be awarded to applying districts in ascending order of adjusted wealth per student beginning with the district with the lowest adjusted wealth per student. Clear Creek does not qualify for IFA funding.

State financial assistance is provided for certain existing debt issued by school districts (referred to herein as EDA) to produce a guaranteed yield (the EDA Yield). Effective September 1, 2003, the portion of the local debt service rate that has qualified for equalization funding by the State has been limited to the first 29 cents of debt service tax or a greater amount for any year provided by appropriation by the Legislature. In 2007, the Legislature appropriated funds for outstanding school district bonds that qualified in prior budget cycles for EDA allotments, provided additional EDA funding for the State’s 2008-09 fiscal biennium for new bonds that qualify for the allotment and rolled forward the eligibility date from 2004-05 to 2006-07 fiscal year. A district may not receive EDA funding for the principal and interest on a series of otherwise eligible bonds for which the district receives overlapping IFA funding. Clear Creek does not qualify for EDA funding.

A district may also qualify for an allotment for operational expenses associated with opening new instructional facilities. This funding source may not exceed $25,000,000 in one school year on a State-wide basis. For the first school year in which students attend a new instructional facility, a district is entitled to an allotment of $250 for each student in average daily attendance at the facility. For the second school year in which students attend that facility, a district is entitled to an allotment of $250 for each additional student in average daily attendance at the facility. The new facility operational expense allotment will be deducted from wealth per student for purposes of calculating a district’s Tier II State funding. Clear Creek qualifies for funding under this program.

Local Revenue Sources - Property Tax Authority The primary source of local funding for school districts is ad valorem taxes levied against the local tax base. The former provision of the Education Code, Section 45.003, that in general limited the M&O Tax rate to $1.50 per $100 of taxable assessed value, was replaced with a formula using the state compression percentage so that the maximum tax rate that may be adopted by a district in any fiscal year is limited based on the amount of State funds to be received by the District in that year. For the 2006-07 and 2007-08 fiscal years, districts may generate additional local funds by raising their M&O Tax rate by $0.04 above the compressed tax rates (without taking into account changes in taxable valuation) without voter approval, and such amounts will generate equalized funding dollars from the State under the Tier II program. In fiscal year 2008-09 and thereafter, districts may, in general, increase their tax rate by an additional two or more cents and receive State equalization funds for such taxing effort so long as the voters approve such tax rate increase. School districts are also authorized to levy a bond debt service tax that may be unlimited in rate. The governing body of a school district cannot adopt an annual tax rate which exceeds the district’s rollback tax rate without submitting such proposed tax rate to the voters at a referendum election.

Wealth Transfer Provisions Under the Finance System, districts are required, with certain limited exceptions, to effectively adjust taxable property wealth per weighted student (wealth per student) for each school year to no greater than the equalized wealth level, determined in accordance with a formula set forth in the Reform Legislation. A district may effectively reduce its wealth per student either by reducing the amount of taxable property within the district relative to the number of weighted students, by transferring revenue out of the district or by exercising any combination of these remedies.

The wealth level that required wealth reduction measures for fiscal year 2006-07 was $319,500 per student in average daily attendance. For 2007-08 that wealth level was modified to $364,500 per student in average daily attendance with respect to that portion of a district’s M&O tax effort that does not exceed its compressed tax rate, and $319,500 with respect to that portion of a district’s local tax effort that is beyond its compressed rate plus $.04. Property wealthy districts may also be able to levy

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up to an additional four cents (six cents beginning with fiscal year 2009-10) per $100 of assessed valuation of M&O Taxes above their compressed rate for revenue that is not subject to recapture.

A district has four options to reduce its wealth per student so that it does not exceed the equalized wealth level: (1) A district may consolidate by agreement with one or more districts to form a consolidated district. All property and debt of the consolidating districts vest in the consolidated district. (2) Subject to approval by the voters of all affected districts, a district may consolidate by agreement with one or more districts to form a consolidated taxing district solely to levy and distribute either M&O Taxes or both M&O Taxes and debt service taxes. (3) A district may detach property from its territory for annexation by a property-poor district. (4) A district may educate students from other districts who transfer to the district without charging tuition to such students.

If a district fails to exercise a permitted option, the Commissioner must reduce the district’s property wealth per student to the equalized wealth level by detaching certain types of property from the district and annexing the property to a property-poor district or, if necessary, consolidate the district with a property-poor district. Provisions governing detachment and annexation of taxable property by the Commissioner do not provide for assumption of any of the transferring district’s existing debt.

♦ Tax Information

General One of the District’s principal sources of operational revenue and its principal source of funds for debt service payments is the receipts from ad valorem taxation. The following is a recapitulation of (a) the authority for taxation, including methodology, limitations, remedies and procedures; (b) historical analysis of collection and trends of tax receipts and provisions for delinquencies; and (c) an analysis of the tax base, including relative property composition and principal taxpayers.

County-Wide Appraisal District The Property Tax Code in the Texas Tax Code (the Tax Code) establishes for each county in Texas a single appraisal district with responsibility for recording and appraising property for all taxing units within the county, and a single appraisal review Assessed Property Value Growth board, with responsibility for Five Year History reviewing and equalizing the ($1,000's) values established by the $15,000,000 appraisal district. The $13,958,777 appraisal of property within the District is the $12,761,283 responsibility of both the $12,500,000 $11,832,947 Galveston Central Appraisal $11,113,895 District and the Harris $10,513,693 County Central Appraisal $10,000,000 Districts (the Appraisal Districts). The Tax Code requires appraisal districts by May 15 of each year, or $7,500,000 as soon thereafter as 2004 2005 2006 2007 2008 practicable, to prepare Calendar Year appraisal records of property as of January 1 of each year based upon market value. The chief appraiser in each district must give written notice before May 15 or as soon thereafter as practicable, to each property owner whose property value is appraised higher than the prior tax year or the value rendered by the property owner or whose property was not on the appraisal roll the preceding year.

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Notice must also be given if ownership of the property changed during the preceding year. An appraisal review board has the ultimate responsibility for determining the value of all taxable property within each District; however, any property owner who has timely filed notice with the appraisal review board may appeal a final determination by the appraisal review board by filing suit in a Texas district court. Prior to such appeal or any tax delinquency date, however, the property owner must pay the tax due on the value of that portion of the property involved that is not in dispute or the amount of tax imposed in the prior year, whichever is greater, or the amount of tax due under the order from which the appeal is taken. In such event, the value of the property in question will be determined by the court, or by a jury, if requested by any party. In addition, taxing units such as the District are entitled to challenge certain matters before the appraisal review board, including the level of appraisals of a certain category or property, the exclusion of property from the appraisal records or the grant in whole or in part of an exemption. A taxing unit may not, however, challenge the valuation of individual properties.

Although the District has the responsibility for establishing tax rates and levying and collecting taxes each year, under the Tax Code, the District does not establish appraisal district standards nor determine the frequency of revaluation or reappraisal. An appraisal district is governed by a board of directors elected by the governing bodies of the county and all cities, towns, school districts, and, if entitled to vote, the conservation and reclamation districts that participate in the appraisal district. The Tax Code requires each appraisal district to implement a plan for periodic reappraisal of property to update appraised values. Such plan must provide for reappraisal of all real property in the appraisal district at least once every three years. The District cannot certify to the frequency of reappraisals which will be utilized by the its appraisal Districts or whether reappraisals will be conducted on a zone or county-wide basis.

Tax Rate Limitations A school district is authorized to levy maintenance and operation taxes (M&O tax) subject to approval of a proposition submitted to district voters under Section 45.003(d) of the Texas Education Code, as amended. The maximum M&O Tax rate that may be levied by a district cannot exceed the voted maximum rate or the maximum rate described in Tax Rate Analysis the next succeeding Fiv e Ye ar His t or y paragraph. The maximum voted M&O Tax rate for the District is $1.50 per $100 of FY 2009 1.040 0.320 assessed valuation as approved by the voters at an FY 2008 1.000 0.320 election held on November 5,

2002 under Chapter 20, Texas FY 2007 1.330 0.300 Education Code (now codified at Section 45.003, Texas FY 2006 1.500 0.275 Education Code). For any fiscal year beginning with the FY 2005 1.500 0.245 2006-07 fiscal year, the maximum tax rate per $100 of $0.00 $0.25 $0.50 $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 assessed valuation that may Maintenance & Operations Interest & Sinking be adopted by the District may not exceed the lesser of (A) $1.50 and (B) the sum of (1) the rate of $0.17, and (2) the product of the state compression percentage multiplied by $1.50. The state compression percentage is 88.67% for fiscal year 2006-07 and 66.67% for fiscal year 2007-08. For fiscal year 2008-09 and thereafter, the Commissioner is required to determine the state compression percentage for each fiscal year which is based on the amount of State funds appropriated for distribution to the District for the current fiscal year. Furthermore, a school district cannot annually

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increase its tax rate in excess of the district’s rollback tax rate without submitting such tax rate to a referendum election and a majority of the voters voting at such election approving the adopted rate.

A school district is also authorized to issue bonds and levy taxes for payment of bonds subject to voter approval of a proposition submitted to the voters under Section 45.003(b)(1), Texas Education Code, as amended, which provides a tax unlimited as to rate or amount for the support of school district bonded indebtedness.

Chapter 45 of the Texas Education Code, as amended, requires a district to demonstrate to the Texas Attorney General that it has the prospective ability to pay debt service on a proposed issue of bonds, together with debt service on other outstanding new debt of the district, from a tax levied at a rate of $0.50 per $100 of assessed valuation before bonds may be issued. In demonstrating the ability to pay debt service at a rate of $0.50, a district may take into account State allotments to the district which effectively reduces the district’s local share of debt service. Once the prospective ability to pay such tax has been shown and the bonds are issued, a district may levy an unlimited tax to pay debt service. The District’s current outstanding debt service requirement is $1,046,799,755 which is covered with a $0.32 cent tax rate. At a $0.50 cent tax rate ceiling, the District’s total debt ceiling is $1,650,000,000.

Rollback Tax Rate In setting its annual tax rate, the governing body of a school district generally cannot adopt a tax rate exceeding the district’s rollback tax rate without approval by a majority of the voters voting at an election approving the higher rate. The tax rate consists of two components: (1) a rate for funding of maintenance and operation expenditures, and (2) a rate for debt service. For the 2007-08 fiscal year and thereafter, the rollback tax rate for a school district is the lesser of (A) the sum of (1) the product of the district’s state compression percentage for that year multiplied by $1.50, (2) the rate of $0.04, (3) any rate increase above the rollback tax rate in prior years that were approved by voters, and (4) the district’s current debt rate, or (B) the sum of (1) the district’s effective maintenance and operations tax rate, (2) the product of the district’s state compression percentage for that year multiplied by $0.06; and (3) the district’s current debt rate.

The effective maintenance and operations tax rate for a school district is the tax rate that, applied to the current tax values, would provide local maintenance and operating funds, when added to State funds to be distributed to the district pursuant to Chapter 42 of the Texas Education Code for the school year beginning in the current tax year, in the same amount as would have been available to the district in the preceding year if the funding elements of wealth equalization and State funding for the current year had been in effect for the preceding year.

By each September 1 or as soon thereafter as practicable, the Board of Trustees adopts a tax rate per $100 taxable value for the current year. Before adopting its annual tax rate, a public meeting must be held for the purpose of adopting a budget for the succeeding year. Furthermore, Section 26.05 of the Property Tax Code provides that the governing body of a taxing unit is required to adopt the annual tax rate for the unit before the later of September 30 or the 60th day after the date the certified appraisal roll is received by the taxing unit.

Property Subject to Taxation by the District Except for exemptions provided by Texas law, all real and certain tangible personal property with a tax situs on the District is subject to taxation by the District. Principal categories of exempt property include; property owned by the State of Texas or its political subdivisions; property exempt from ad valorem taxation by federal law, certain improvements in real property and certain tangible property located in designated reinvestment zones; certain property of a nonprofit corporation used in scientific research and educational activities benefiting a college or university, and designated historic sites.

Other principal categories of exempt property include tangible personal property not held or used for production of income, solar and wind powered energy devices; most individually owned automobiles;

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$10,000 exemption to residential homesteads of persons ages 65 or over and property of disabled persons; an exemption of between $5,000 and $12,000 applicable to real or personal property of disabled veterans or the surviving spouses or children of a deceased veteran who died while on active duty in the armed forces; $15,000 in market value for all residential homesteads; and certain classes of tangible property. The State mandated $10,000 exemption for persons 65 years of age or older amounted to $87,242,089 of the 2008 tax roll.

In addition, except for increases attributable to certain improvements, the District is prohibited by state law from increasing the total ad valorem tax of the residence homestead of persons 65 years of age or older above the amount of tax imposed in the year such residence qualified for an exemption based on the age of the owner. The freeze on ad valorem taxes on the homesteads of persons 65 years of age or older is also transferable to a different residence homestead. State mandated homestead exemptions amounted to $721,254,219 of the 2008 tax roll.

The District also grants an additional local option exemption for persons over 65 years of age or disabled persons and additional homestead exemptions of up to 5% of market value of a residential homestead for all taxpayers. The value of property exempted from taxation by the $18,330 local option and the 5% residential homestead exemption for the 2008 tax year were $157,772,095 and $452,461,994, respectively.

Clear Creek Independent School District Distribution of Tax Base Budget for the Year Ending August 31, 2009

2004 2005 20062007 2008 Type of Property Tax Roll Tax Roll Tax Roll Tax Roll Tax Roll Residential 8,762,775,167 9,499,904,375 9,927,685,944 9,438,841,259 12,093,855,201

Platted Lots/Tracts 178,259,504 195,961,546 174,836,338 252,351,529 266,992,796

Acreage 223,675,689 227,100,269 186,776,719 74,894,937 246,096,566

Farm & Ranch Improvements 6,166,320 8,513,880 8,842,600 8,398,147 6,953,552

Commercial, Industrial Business 2,975,085,474 3,165,211,852 2,082,050,959 2,377,040,486 2,973,204,890

Oil, Gas & Other Mineral Reserves 43,930,580 35,711,540 36,621,870 49,601,520 61,341,624

Utilities 236,623,653 244,778,460 235,986,617 223,885,193 159,296,314

Inventory 59,947,707 88,345,072 87,564,246 108,167,949 1,506,916,278

Other 37,776,090 6,626,655 968,288,191 1,279,736,278 125,774,174

Total Appraised Value 12,524,240,184 13,472,153,649 13,708,653,484 13,812,917,298 17,440,431,395

Exempt Property 1,036,370,341 1,912,781,516 1,993,451,446 1,619,549,956 330,858,089

Total Market Value 13,560,610,525 15,384,935,165 15,702,104,930 15,432,467,254 17,771,289,484

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Owners of agricultural and open space land, under certain circumstances, may request valuation of such land on the basis of productive capacity rather than market value. The loss of value due to property values based on productivity value and timber production on the 2008 tax roll was approximately $73,924,643.

The Tax Code also provides for an exemption from ad valorem taxation for certain pollution control property. In 2008, the District lost $51,288,433 of taxable value as a result of such exemption.

Levy & Tax Collection The District is responsible for the collection of its taxes. Taxes are due on receipt of the tax bill, and become delinquent after January 31 of the following year, or on the first day of the calendar month next following the expiration of twenty-one days after mailing the tax bills, whichever occurs later. A delinquent tax incurs an initial penalty of six percent (6%) of the amount of the tax and accrues an additional penalty of one percent (1%) per month up to July 1, at which time the total penalty becomes twelve percent (12%). In addition, delinquent taxes accrue interest at one percent (1%) per month. If the tax is not paid by July 1, an additional penalty of up to fifteen percent (15%) may under circumstances be imposed by the District. The Tax Code also makes provision for the split payment of taxes, discounts for early payments, partial payments of taxes and the postponement of the delinquency date of taxes under certain circumstances.

Clear Creek Independent School District Comparison of Levy on Average Residence Budget for the Year Ending August 31, 2008

Levy on Average Residence Five Year History

FY 2009 $2,093

FY 2008 $1,875

FY 2007 $2,231

FY 2006 $2,335

FY 2005 $2,183

$0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500

Total Tax Levy

Comparison of Levy on Average Residence

Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Average Market Value$ 148,274.00 $156,084.00 $ 161,894.00 $166,619.00 $184,262.00 Average Taxable Value$ 125,102.00 $131,539.00 $ 136,858.00 $142,014.00 $153,928.00 Tax Rate per $100 Value$ 1.74500 $ 1.77500 $ 1.63000 $ 1.32000 $ 1.36000 Tax on Avg Residence$ 2,183.03 $ 2,334.82 $ 2,230.79 $ 1,874.58 $ 2,093.42

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Collection of Delinquent Taxes Taxes levied by the District are a personal obligation of the owner of the property. On January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties and interest ultimately imposed for the year on the property. The lien exists in favor of the State and each taxing unit, including the District, having the power to tax the property. The District’s tax lien is on parity with tax liens of all other such taxing units. A tax lien on real property has priority over the claim of most creditors and other holders of liens on the property encumbered by the tax lien, whether or not the debt or lien existed before the attachment of the tax lien. In the event a taxpayer fails to make timely payment of taxes due the District, the District may file suit to foreclose the lien securing payment of the tax, to enforce personal liability for the tax, or both.

The ability of the District to collect delinquent taxes by foreclosure may be adversely affected by the amount of taxes owed to other taxing units, the foreclosure sale price attributable to market conditions, the taxpayer’s right to redeem the property within six months on non-homestead property and 2 years on homestead property, or by bankruptcy proceedings which restrain the collection of a taxpayer’s debt.

Source: Clear Creek Independent School District OFFICIAL STATEMENT dated April 24, 2008.

Clear Creek Independent School District Property Tax Collections Budget for the Year Ending August 31, 2009

Property Tax Collections Five Year History ($1,000's)

$250,000 $225,000 $200,000 $175,609 $163,200 $165,200 $175,000 $144,220 $150,000 $134,200 $125,000 $100,000 $75,000 $37,354 $43,150 $43,000 $50,000 $26,775 $32,162 $25,000 $0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009

Maintenance & Operations Interest & Sinking

Property Tax Collections ($1,000's)

Budget Budget Description FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Revenues: Maintenance & Operations$ 163,200 $ 175,609 $ 165,200 $ 134,200 $ 144,220 Interest & Sinking 26,775 32,162 37,354 43,150 43,000 Total Revenues$ 189,975 $ 207,771 $ 202,554 $ 177,350 $ 187,220 167 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District

Top Twenty Taxpayers

2008 Tax Role

Market Taxable % of Total Rank Taxpayer Type of Property Assessed Value Assessed Value Assessed Value 1 Coral Energy Resources Stored Gas 377,127,336 377,127,336 2.70% 2 Baybrook Mall LP Commercial 142,877,726 142,877,726 1.02% 3 Clear Lake Hospital Regional Center Commercial 83,785,248 83,785,248 0.60% 4 American Acryl Chemical Plant 89,109,896 78,350,786 0.56% 5 Ineos Nova Chemical Chemical Plant 69,155,777 69,155,777 0.50% 6 Inland American Webster Commercial 63,600,000 63,600,000 0.46% 7 Tejas Gas Pipeline, LLC Pipeline 62,917,696 62,917,696 0.45% 8 Lyondell Chemical Co. Chemical Plant 51,891,279 51,891,279 0.37% 9 LBC Houston LP Industrial 51,906,503 50,609,303 0.36% 10 American National Insurance Insurance Company 45,121,622 45,121,622 0.32% 11 The Boeing Company Commercial 44,970,575 44,970,575 0.32% 12 UDR Bradford Limited Commercial 43,000,000 43,000,000 0.31% 13 Medistar Webster Medical Commercial 42,405,507 42,405,507 0.30% 14 Texas Baybrook Square Commercial 40,463,143 40,463,143 0.29% 15 Exxon Mobile Corp Oil/Gas Commercial 36,883,349 36,883,349 0.26% 16 Southbrook Corp Commercial 34,329,769 34,329,769 0.25% 17 NP SSP Baybrook LLC Commercial 33,255,740 33,255,740 0.24% 18 Atofina Petrochemicals Inc. Refining Plant 33,146,240 33,146,240 0.24% 19 Total Petrochemicals USA, Inc. Refining Plant 32,852,050 32,852,050 0.24% 20 Ineos Nova LLC Chemical Plant 29,683,529 29,683,529 0.21%

Total Top Twenty Taxpayers$ 1,408,482,985 $ 1,396,426,675

Total Assessed Taxable Value$ 13,958,777,000

Source: Clear Creek ISD Tax Office

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♦ Past and Current Student Enrollment

Campus 2005 2006 2007 2008 2009 High Schools Clear Brook 2,780 2,896 2,895 2,646 2620 Clear Creek 3,491 3,815 3,908 3,162 2815 Clear Horizon’s-Early College - - - 208 270 Clear Lake 3,524 3,624 3,536 3,568 3548 Clear Springs - - - 1,163 1840 Clear View Alternative 200 191 218 200 196

Intermediate Schools Brookside 1,287 832 797 825 813 Clear Lake 994 994 956 947 1127 Creekside 680 748 788 810 828 League City 1,149 1,127 1,149 1,176 1298 Seabrook 1,056 1,001 1,019 1,055 1051 Space Center 1,295 1,323 1,222 1,151 1260 Victory Lakes 756 940 997 1,070 1201 Westbrook - 1,259 1,342 1,449 1216

Elementary Schools Armand Bayou 560 572 583 564 518 Bauerschlag 723 777 807 889 975 Bay 942 980 719 712 660 Brookwood 859 862 757 742 704 Clear Lake City 523 569 517 585 602 Falcon Pass 865 848 648 618 628 Ferguson 812 851 876 869 843 Gilmore 706 706 780 917 1022 Goforth 614 723 796 906 1048 Greene 681 741 724 718 734 Walter Hall 913 467 508 577 641 Hyde 691 703 726 695 693 Landolt 719 728 703 722 767 League City 526 515 598 570 584 McWhirter 628 687 666 664 794 North Pointe 913 811 768 704 730 Robinson - - 524 565 531 Ross 599 608 609 671 731 Stewart 503 576 577 574 554 Ward 705 784 727 685 645 Weber 582 745 800 873 829 Wedgewood 847 828 813 796 817 Whitcomb 758 828 837 774 722 White 566 602 490 493 499

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♦ Student Enrollment Projections

Enrollment projections are provided through a contract with MetroStudy, Inc. Metro Study integrates school district information with its proprietary new home census information and specific neighborhood forecasts to create specific enrollment projections by attendance zone for the District.

MetroStudy was retained in early 2004 to provide enrollment projections to the Long Range Facility Master Plan Committee. They made an initial enrollment estimate in July 2004. This estimate was reviewed again in 2005 and 2006 to determine if the initial estimate was still valid. This annual review allows the District to take a proactive stance with regard to new school locations. As a result, school sites can now be established in advance of the expected influx of students. This early warning allows the District to negotiate land purchases now while pricing is still affordable.

The District is rapidly growing and has large areas of undeveloped land. MetroStudy will be a key data source for the District in the future. Current projections show student enrollment for the FY 2009 school year to be 37,200. This number will grow to 42,194 over the next four years.

Actual/Projected Enrollment Growth

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 - 2006 2007 2008 2009 2010 2011 2012 2013 2014

Elementary Intermediate High School Total

School YearElementaryIntermediateHigh School Total 2006 16,464 8,288 10,455 35,207 2007 16,927 8,503 10,874 36,304 2008 17,150 8,716 11,178 37,044 2009 18,158 8,889 12,229 39,276 2010 18,602 9,155 12,718 40,475 2011 18,985 9,347 13,276 41,608 2012 19,295 9,595 13,857 42,747 2013 19,594 9,734 14,190 43,518 2014 19,947 9,920 14,504 44,371

Source: Long Range Planning Committee – 20 Year Growth Projections – Moderate Growth Model

170 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Debt Schedules

Clear Creek Independent School District Outstanding Debt Budget for the Year Ending August 31, 2009

$95,430,000 $37,135,000 $27,885,000 $109,000,000 Unlimited Tax School Unlimited Tax School Unlimited Tax School Unlimited Tax School House Bonds House Bonds House Bonds House Bonds Series 2008 Series 2007Series 2006 Series 2005 Year Principal Interest Principal Interest Principal Interest Principal Interest

2009 5,827,389 25,000 1,823,656 500,000 1,321,188 500,000 5,196,825 2010 80,000 4,519,650 50,000 1,822,156 300,000 1,304,188 500,000 5,171,825 2011 255,000 4,512,950 75,000 1,819,563 400,000 1,289,313 750,000 5,140,575 2012 4,120,000 4,425,450 90,000 1,816,056 1,285,000 1,245,475 1,000,000 5,096,825 2013 4,405,000 4,249,444 145,000 1,811,063 1,390,000 1,171,913 1,000,000 5,046,825 2014 3,820,000 4,069,888 200,000 1,803,481 980,000 1,106,738 1,500,000 4,984,325 2015 3,890,000 3,906,138 375,000 1,790,544 885,000 1,055,450 1,725,000 4,903,700 2016 3,895,000 3,750,438 405,000 1,772,994 1,000,000 1,003,613 1,750,000 4,823,825 2017 890,000 3,654,738 430,000 1,754,206 1,050,000 947,238 1,775,000 4,748,913 2018 910,000 3,618,738 455,000 1,734,294 980,000 891,413 2,000,000 4,660,750 2019 935,000 3,581,838 485,000 1,713,447 830,000 841,638 2,250,000 4,554,500 2020 960,000 3,543,938 510,000 1,691,681 755,000 798,050 2,500,000 4,435,750 2021 990,000 3,502,463 540,000 1,667,700 695,000 758,175 2,750,000 4,304,500 2022 1,015,000 3,457,350 570,000 1,641,338 635,000 724,775 3,000,000 4,175,750 2023 1,125,000 3,409,200 820,000 1,608,325 1,815,000 669,650 10,270,000 3,859,000 2024 1,140,000 3,358,238 855,000 1,568,544 1,925,000 585,500 10,940,000 3,328,750 2025 1,155,000 3,306,600 900,000 1,526,863 2,040,000 496,288 11,635,000 2,764,375 2026 1,155,000 3,253,181 930,000 1,483,400 2,180,000 401,338 12,340,000 2,165,000 2027 1,165,000 3,198,081 975,000 1,438,156 2,395,000 298,400 12,890,000 1,534,250 2028 1,170,000 3,142,625 1,010,000 1,389,750 2,690,000 183,988 13,500,000 874,500 2029 1,165,000 3,087,169 1,050,000 1,338,250 2,905,000 61,731 13,425,000 268,500 2030 14,225,000 2,703,875 6075000 1,160,125 2031 14,920,000 1,975,250 6390000 848,500 2032 15,645,000 1,211,125 6715000 520,875 2033 16,400,000 410,000 7,060,000 176,500

Total 95,430,000 85,675,751 37,135,000 37,721,466 27,635,000 17,156,056 108,000,000 82,039,263

171 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Outstanding Debt Budget for the Year Ending August 31, 2009

$200,405,000 $51,000,000 $100,870,000 $138,195,000 Unlimited Tax School Unlimited Tax School Unlimited Tax School Unlimited Tax School House & Refunding Bonds House Adj Rate Bonds House & Refunding Bonds House & Refunding Bonds Series 2004A Series 2004B Series 2002 Series 2000 Year Principal Interest Principal Interest Principal Interest Principal Interest

2009 778,913 9,661,937 1,760,250 4,610,000 3,917,140 629,020 623,745 2010 2,069,111 9,898,327 1,912,500 2,285,000 3,773,528 439,434 553,331 2011 977,633 9,688,604 1,912,500 4,165,000 3,628,403 414,452 578,313 2012 1,425,406 9,717,162 1,912,500 11,225,000 3,282,128 135,000 248,715 2013 1,434,034 9,711,454 1,912,500 11,730,000 2,736,315 150,000 240,165 2014 3,295,000 9,431,225 1,912,500 11,550,000 2,154,315 175,000 230,415 2015 7,290,000 9,166,600 1,912,500 8,515,000 1,652,690 160,000 220,365 2016 6,935,000 8,810,975 1,912,500 9,735,000 1,196,440 260,000 207,765 2017 17,885,000 8,190,475 1,912,500 2,845,000 881,940 285,000 191,843 2018 18,480,000 7,281,350 1,912,500 3,015,000 735,440 585,000 167,925 2019 19,450,000 6,333,100 1,912,500 3,185,000 589,995 620,000 134,615 2020 20,400,000 5,336,850 1,912,500 3,360,000 444,325 655,000 98,433 2021 21,385,000 4,292,225 1,912,500 3,550,000 285,300 695,000 59,958 2022 21,880,000 3,256,325 1,912,500 4,250,000 100,938 730,000 20,075 2023 14,010,000 2,422,313 1,912,500 2024 14,525,000 1,744,606 1,912,500 2025 15,070,000 1,041,725 1,912,500 2026 15,630,000 341,906 1,912,500 2027 16,250,000 1,607,813 2028 16,750,000 989,063 2029 18,000,000 337,500 2030 2031 2032 2033

Total 202,920,097 116,327,159 51,000,000 37,207,125 84,020,000 25,378,895 5,932,906 3,575,662

172 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Outstanding Debt Budget for the Year Ending August 31, 2009

$57,850,000 $13,050,000 Unlimited Tax Unlimited Tax Total Total Refunding Bonds Refunding Bonds Outstanding Total Debt Series 1998 Series 1991A Debt Interest Service Year Principal Interest Principal Interest - - 2009 4,740,000 611,250 1,010,962 2,269,038 12,793,894 33,012,418 45,806,313 2010 5,000,000 367,750 1,543,671 3,821,329 12,267,217 33,144,582 45,411,799 2011 4,855,000 121,375 1,424,923 3,880,077 13,317,008 32,571,672 45,888,680 2012 19,280,406 27,744,311 47,024,718 2013 20,254,034 26,879,678 47,133,711 2014 21,520,000 25,692,886 47,212,886 2015 22,840,000 24,607,986 47,447,986 2016 23,980,000 23,478,549 47,458,549 2017 25,160,000 22,281,851 47,441,851 2018 26,425,000 21,002,409 47,427,409 2019 27,755,000 19,661,632 47,416,632 2020 29,140,000 18,261,526 47,401,526 2021 30,605,000 16,782,820 47,387,820 2022 32,080,000 15,289,050 47,369,050 2023 28,040,000 13,880,988 41,920,988 2024 29,385,000 12,498,138 41,883,138 2025 30,800,000 11,048,350 41,848,350 2026 32,235,000 9,557,325 41,792,325 2027 33,675,000 8,076,700 41,751,700 2028 35,120,000 6,579,925 41,699,925 2029 36,545,000 5,093,150 41,638,150 2030 20,300,000 3,864,000 24,164,000 2031 21,310,000 2,823,750 24,133,750 2032 22,360,000 1,732,000 24,092,000 2033 23,460,000 586,500 24,046,500

Total 14,595,000 1,100,375 3,979,556 9,970,444 630,647,559 416,152,195 1,046,799,755

173 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Estimated Overlapping Debt Budget for the Year Ending August 31, 2009

TOTAL ESTIMATED OVERLAPPING DEBT$ 569,668,996

The District 626,425,000

TOTAL DIRECT & ESTIMATED OVERLAPPING DEBT $ 1,196,093,996

174 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Financial Forecasts

Basis of Assumptions Clear Creek Independent School District utilizes a number of data points and underlying assumptions in developing long range financial forecasts. Due to the uncertainty associated with the current school funding system, State revenues are difficult to forecast beyond the 2008-2009 school year. Clear Creek receives just over 42% of its total revenue from state sources. By conservatively forecasting state revenues, we can closely approximate our total revenue picture in future years. Below is a list of information and data sources utilized for Clear Creek’s financial forecasts.

Required Data Data Source______Student Enrollment MetroStudy, Inc. Staffing CCISD Staffing Plans Property Value - Current Galveston Central Appraisal District Property Value - Growth Clear Creek ISD Tax Office New School Construction CCISD Long Range Facilities Master Plan Major Maintenance & Renovation CCISD Clear Plan 2020 Maintenance & Operations Tax Rate State Tax Cap of $1.17

Combined Statement of Revenues, Expenditures & Changes to Fund Balance The three year forecast of revenues, expenditures and changes in fund balance is provided over the next several pages. Forecasts are included for all governmental funds.

All funds will be impacted by enrollment growth; however, the General Fund is hardest hit in a fast growth scenario. While capital and debt service funds naturally increase as bond programs are approved by voters, there are dedicated tax dollars to meet those financial needs. The General Fund, however, is the main operating fund of the District and is often pressed to meet the financial needs of a growing district. It includes the impact of continued increases in property values, student enrollment, and teaching staff to meet projected growth over the period. It also includes the impact of staffing the new school openings that are projected over the period as well as increased operational costs inherent with new campuses. Since property value growth and student enrollment have a huge impact on district costs, they are provided below for review.

Property Value Growth

FY 2009 - 2010 FY 2010 - 2011 FY 2011-2012

$ 14,796,304,000 $ 15,684,082,000 $16,625,127,000

Student Enrollment Growth

FY 2009 - 2010 FY 2010 - 2011 FY 2011-2012 39,279 40,475 41,608

175 FY 2008 – 2009 Budget Detailed Budget Analysis

Governmental Funds Forecast

The Governmental Funds financial forecast is reflective of the District’s enrollment growth and voter authorized bond programs. Each fund is highlighted in the following pages with individual forecasts. We have also provided a list of key inputs and assumptions that were used to develop each forecast.

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Governmental Funds Long Range Forecast

Budget Forecast Forecast Forecast Description FY 2009 FY 2010 FY 2011 FY 2012 Revenues: Local Revenue 207,976,333 219,739,300 236,276,265 248,747,713 State Revenue 119,652,747 127,774,505 135,380,774 140,436,274 Federal Revenue 9,964,694 10,435,679 10,930,213 11,449,474

Total Revenues 337,593,775 357,949,484 382,587,252 400,633,460

Expenditures: Instruction & Instruction Related 187,108,146 200,798,673 215,498,861 226,273,804 Instruction & School Leadership 19,426,034 20,868,444 21,911,867 23,007,460 Student Support Services 31,741,325 34,037,964 35,739,862 37,526,856 Administrative Support Services 6,930,479 7,277,003 7,640,853 8,022,896 Plant Maintenance & Operations 20,974,321 22,546,553 24,236,660 25,448,493 Security & Monitoring Services 2,531,127 2,657,683 2,790,568 2,930,096 Technology Services 4,872,086 5,115,690 5,371,475 5,640,049 Ancilliary Services 533,648 560,331 588,347 617,765 Debt Services 45,800,000 45,400,000 49,900,000 51,900,000 Capital Outlay 114,278,242 67,983,444 41,604,558 41,299,071 Intergovernmental Charges 14,293,695 15,008,380 15,758,799 16,152,769

Total Expenditures 448,489,103 422,254,166 421,041,850 438,819,258

Excess (Deficiency) of Revenues Over (Under) Expenditures (110,895,328) (64,304,682) (38,454,599) (38,185,797)

Other Resources 55,600,000 58,975,000 23,491,859 2,000,000 Other Uses (3,600,000) - - -

Total Other Resources and (Uses) 52,000,000 58,975,000 23,491,859 2,000,000

Other Resources Over Expenditures and Other Uses (58,895,328) (5,329,682) (14,962,740) (36,185,797)

Fund Balance - September 1 (Beginning) 179,416,574 120,521,246 115,191,564 105,732,990

Increase (Decrease) in Fund Balance - - - -

Fund Balance - August 31 (Ending) 120,521,246 115,191,564 105,732,990 69,547,193

176 FY 2008 – 2009 Budget Detailed Budget Analysis

General Fund Forecast

Major Impacts Clear Creek is a fast growth school district that is growing by over 1,000 students each year. Enrollment growth drives facilities (capital programs), operating costs, and staffing. Almost 85% of the General Fund budget is personnel so a long range staffing plan is vital to developing a long range financial forecast.

Clear Creek has developed a three year long range financial forecast that incorporates the impact of new campuses on staffing. The following pages highlight the area of greatest impact on the District – staffing.

Projected Campus Build-Out Assumptions

177 FY 2008 – 2009 Budget Detailed Budget Analysis

New Campus Openings and Enrollment Growth Assumptions

Clear Creek Independent School District FY 2009 – 2010 Forecast

Assumptions:

Campus Staffing Assumptions: 1. Enrollment Growth of 800 - 1,000 Students 2. Fully Staff Elementary # 25 (Hwy 3 site) – August 2009 Opening 3. Fully Staff Elementary # 26 (Hwy 96 site) – August 2009 Opening 4. Add 12th Grade to Clear Springs High School 5. Fully Staff Intermediate # 9 6. Start-up Staffing for High School # 5 (9th & 10th Grades) – August 2010 Opening 7. Start-up Staffing for Intermediate # 10 – August 2010 Opening 8. Continue Academic Build out 9. Campus Paraprofessional Standards

Staffing Forecast:

Description Total Units Total Cost 1. Enrollment Growth 75.00 $ 3,314,300 2. Staff Elementary # 25 39.79 1,485,140 3. Staff Elementary # 26 39.79 1,485,140 4. Add 12th Grade to CSHS 26.50 1,313,563 5. Staff Intermediate # 9 33.33 1,628,458 6. Start-up Staffing – High School # 5 9.12 452,334 7. Start-up Staffing – Intermediate # 10 6.17 253,412 8. Academic Build out 9.00 503,450 9. Campus Paraprofessional Standard 2.00 45,500 10. Operations 22.00 491,000 11. Five Year Staffing Plan 32.50 1,625,416 Total Additional Staffing Costs 295.21 $ 12,597,713

Operating Cost Forecast:

Description 1. Open Elementary # 25 - Utilities @ $1.72/sq ft 110,000 $ 189,200 - Property & Casualty Insurance $ 200,000 2. Open Elementary # 26 - Utilities @ $1.72/sq ft 110,000 $ 189,200 - Property & Casualty Insurance $ 200,000 3. Open Intermediate # 9 - This is an existing campus - No new oiperational costs

Total Additional Operating Costs $ 778,400 178 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District FY 2010 – 2011 Forecast

Assumptions:

Campus Staffing Assumptions: 1. Enrollment Growth of 800 - 1,000 Students 2. Fully Staff 9th & 10th Grades at High School #7 3. Fully Staff Intermediate # 10 4. Start-up Staffing for Intermediate #11 5. Continue Academic Buildout Plan 6. Continue Campus Paraprofessional Standards

Staffing Forecast:

Description Total Units Total Cost 1. Enrollment Growth 61.00 $ 3,141,900 2. Fully Staff 9th & 10th Grades at High School # 7 94.63 3,525,496 3. Fully Staff Intermediate #10 66.83 2,617,018 4. Start-up Staffing for Intermediate #11 3.08 184,368 5. Academic Buildout Plan 2.00 103,950 6. Campus Paraprofessional Plan 2.00 46,800 7. Operations Staffing Plan 19.00 401,000 8. Five Year Staffing Plan 25.50 1,426,469 Total Additional Staffing Costs 274.05 $ 11,447,000

Operating Cost Forecast:

Description 1. Open High School #7 - Utilities @ $1.72/sq ft 465,000 $ 799,800 - Property & Casualty Insurance $ 400,000 2. Open Intermediate #10 - Utilities @ $1.72/sq ft 265,000 $ 455,800 - Property & Casualty Insurance $ 300,000

Total Additional Operating Costs$ 1,955,600

179 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District FY 2011 – 2012 Forecast

Assumptions:

Campus Staffing Assumptions: 1. Enrollment Growth of 800 - 1,000 Students 2. Fully Staff 11th Grades at High School #7 3. Fully Staff Intermediate # 11 4. Start-up Staffing for Elementary #27 5. Continue Academic Buildout Plan 6. Continue Campus Paraprofessional Standards

Staffing Forecast:

Description Total Units Total Cost 1. Enrollment Growth 59.00 $ 3,125,550 2. Fully Staff 11th Grades at High School # 7 36.00 1,897,525 3. Fully Staff Intermediate #11 40.92 2,062,520 4. Start-up Staffing for Elementary #27 2.71 150,613 5. Academic Buildout Plan 2.00 106,950 6. Campus Paraprofessional Plan 2.00 48,000 7. Operations Staffing Plan 11.00 279,800 8. Five Year Staffing Plan 16.50 949,154 Total Additional Staffing Costs 170.13 $ 8,620,112

Operating Cost Forecast:

Description 1. No new campuses opening in 2011-2012

Total Additional Operating Costs$ -

180 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Forecast - General Fund Long Range Forecast

Budget Forecast Forecast Forecast Description FY 2009 FY 2010 FY 2011 FY 2012 Revenues: Local Revenue 155,366,000 167,134,300 179,491,015 189,773,201 State Revenue 114,233,000 122,083,770 129,405,503 134,162,239 Federal Revenue 545,000 545,000 545,000 545,000

Total Revenues 270,144,000 289,763,070 309,441,518 324,480,440

Expenditures: Instruction & Instruction Related 173,404,814 186,410,175 200,390,938 210,410,485 Instruction & School Leadership 18,844,349 20,257,675 21,270,559 22,334,087 Student Support Services 28,382,930 30,511,650 32,037,232 33,639,094 Administrative Support Services 6,741,479 7,078,553 7,432,481 7,804,105 Plant Maintenance & Operations 20,940,641 22,511,189 24,199,528 25,409,505 Security & Monitoring Services 2,527,542 2,653,919 2,786,615 2,925,946 Technology Services 4,872,086 5,115,690 5,371,475 5,640,049 Ancilliary Services 130,550 137,078 143,931 151,128 Debt Services 0 - - - Capital Outlay 0 - - - Intergovernmental Charges 14,293,695 15,008,380 15,758,799 16,152,769

Total Expenditures 270,138,086 289,684,309 309,391,558 324,467,166

Excess (Deficiency) of Revenues Over (Under) Expenditures 5,914 78,762 49,959 13,273

Other Resources - - - - Other Uses - - - -

Total Other Resources and (Uses) - - - -

Other Resources Over Expenditures and 5,914 78,762 49,959 13,273

Fund Balance - September 1 (Beginning) 53,540,987 53,546,901 53,625,663 53,675,622

Increase (Decrease) in Fund Balance - - - -

Fund Balance - August 31 (Ending) 53,546,901 53,625,663 53,675,622 53,688,895

Reserved Fund Balance 9,730,411 9,730,411 9,730,411 9,730,411 Undesignated Fund Balance 43,816,490 43,895,252 43,945,211 43,958,484

181 FY 2008 – 2009 Budget Detailed Budget Analysis

Capital Projects Funds Forecast

Major Impacts Bond Programs: The major cost driver in the capital projects funds is the construction of new facilities. These projects are funded with voter authorized bonds that are funded through the debt service tax rate. The District developed detailed project schedules for all projects identified in the $183 million 2007 bond program. This schedule is provided below.

CLEAR CREEK INDEPENDENT SCHOOL DISTRICT BOND 2007 PLANNING

Monthly Cash Flows Intermediate 9th Grade Ctr. Accumulated Expenditures by Elementary #25 Elementary #26 High School #7 Bond Sales #10 Conversions Totals Fiscal Year May-07 $ 48,417 $ 48,417 Jun-07 $ 48,417 $ 48,417 Jul-07 $ 56,486 $ 56,486 $ 37,275,000 Aug-07 $ 56,486 $ 56,486 $ 209,805 FY 2007 - 2008 Sep-07 $ 56,486 $ 56,486 Oct-07 $ 56,486 $ 56,486 Nov-07 $ 968,332 $ 12,531 $ 980,863 Dec-07 $ 968,332 $ 12,531 $ 980,863 Jan-08 $ 1,291,110 $ 50,764 $ 172,065 $ 14,620 $ 1,528,558 Feb-08 $ 1,613,887 $ 50,764 $ 172,065 $ 14,620 $ 1,851,336 Mar-08 $ 1,936,664 $ 59,225 $ 172,065 $ 14,620 $ 2,182,574 Apr-08 $ 2,420,830 $ 59,225 $ 258,097 $ 14,620 $ 2,752,772 May-08 $ 1,291,110 $ 59,225 $ 258,097 $ 1,044,275 $ 2,652,706 Jun-08 $ 1,291,110 $ 59,225 $ 258,097 $ 1,044,275 $ 2,652,706 $ 63,375,000 Jul-08 $ 1,291,110 $ 1,015,282 $ 1,290,487 $ 1,044,275 $ 4,641,153 Aug-08 $ 1,129,721 $ 1,015,282 $ 1,290,487 $ 543,023 $ 3,978,513 $ 24,315,018 FY 2008 - 2009 Sep-08 $ 484,166 $ 1,353,709 $ 1,720,650 $ 70,149 $ 417,710 $ 4,046,384 Oct-08 $ 484,166 $ 1,692,136 $ 1,720,650 $ 70,149 $ 3,967,101 Nov-08 $ 322,777 $ 2,030,563 $ 2,580,975 $ 70,149 $ 5,004,464 Dec-08 $ 322,777 $ 2,538,204 $ 2,580,975 $ 105,224 $ 5,547,180 Jan-09$ 1,353,709 $ 3,441,299 $ 105,224 $ 4,900,232 Feb-09$ 1,353,709 $ 3,441,299 $ 105,224 $ 4,900,232 Mar-09$ 1,353,709 $ 3,871,462 $ 876,867 $ 6,102,037 Apr-09$ 1,184,495 $ 4,301,624 $ 964,553 $ 6,450,673 May-09$ 507,641 $ 4,731,787 $ 1,052,240 $ 6,291,667 Jun-09$ 507,641 $ 6,022,274 $ 1,402,987 $ 7,932,901 Jul-09$ 338,427 $ 6,022,274 $ 1,402,987 $ 7,763,688 $ 50,500,000 Aug-09$ 338,427 $ 5,377,030 $ 1,402,987 $ 7,118,444 $ 70,025,004 FY 2009 - 2010 Sep-09 $ 4,731,787 $ 1,753,733 $ 6,485,520 Oct-09 $ 4,301,624 $ 1,753,733 $ 6,055,357 Nov-09 $ 3,656,381 $ 1,929,107 $ 5,585,487 Dec-09 $ 3,441,299 $ 2,104,480 $ 5,545,779 Jan-10 $ 3,226,218 $ 2,279,853 $ 5,506,071 Feb-10 $ 3,226,218 $ 2,455,226 $ 5,681,445 Mar-10 $ 3,011,137 $ 2,630,600 $ 5,641,737 Apr-10 $ 3,011,137 $ 2,542,913 $ 5,554,050 May-10 $ 1,290,487 $ 1,753,733 $ 3,044,220 Jun-10 $ 1,290,487 $ 1,753,733 $ 3,044,220 Jul-10 $ 1,290,487 $ 1,753,733 $ 3,044,220 $ 31,975,000 Aug-10 $ 1,290,487 $ 1,753,733 $ 3,044,220 $ 58,232,329 FY 2010 - 2011 Sep-10 $ 1,290,487 $ 1,666,047 $ 2,956,534 Oct-10 $ 1,290,487 $ 1,315,300 $ 2,605,787 Nov-10 $ 10,355 $ 10,355 Dec-10 $ 10,355 $ 10,355 Jan-11 $ 12,080 $ 12,080 Feb-11 $ 12,080 $ 12,080 Mar-11 $ 12,080 $ 12,080 Apr-11 $ 12,080 $ 12,080 May-11 $ 862,891 $ 862,891 Jun-11 $ 862,891 $ 862,891 Jul-11 $ 862,891 $ 862,891 Aug-11 $ 448,704 $ 448,704 $ 8,668,730 FY 2011 - 2012 Sep-11 $ 345,157 $ 345,157 Oct-11 Nov-11 $ 345,157

Total$ 16,138,869 $ 16,921,360 $ 86,032,486 $ 35,074,664 $ 7,628,664 $ 161,796,043 $ 183,125,000 $ 161,796,043 182 FY 2008 – 2009 Budget Detailed Budget Analysis

Bond Programs - Future: The District anticipates future bond programs will be needed to fund additional facilities, buses, technology, and major maintenance. While the likelihood of future bond programs is high, it is impossible at this time to anticipate everything that might be included in a future bond program. In light of this, we have forecast a limited bond program that only includes a potential 27th elementary school and 12th intermediate school. This will give the District a $52 million bond program in 2010. This schedule is provided below.

CLEAR CREEK INDEPENDENT SCHOOL DISTRICT FUTURE BOND PLANNING

May 2010 Bond Referendum - $52 Million 1 Elementary & 1 Intermediate

Monthly Cash Flows Intermediate Accumulated Expenditures by Elementary #27 Bond Sales #12 Totals Fiscal Year FY 2009 - 2010 Jan-10 $ - Feb-10 $ - Mar-10 $ - Apr-10 $ - May-10 $ - $ 25,000,000 Jun-10 $ 70,149 $ 70,149 Jul-10 $ 70,149 $ 70,149 Aug-10 $ 70,149 $ 70,149 $ 210,448 FY 2010 - 2011 Sep-10$ 50,764 $ 105,224 $ 155,988 Oct-10$ 50,764 $ 105,224 $ 155,988 Nov-10$ 59,225 $ 105,224 $ 164,449 Dec-10$ 59,225 $ 876,867 $ 936,091 Jan-11$ 59,225 $ 964,553 $ 1,023,778 Feb-11$ 59,225 $ 1,052,240 $ 1,111,465 Mar-11$ 1,015,282 $ 1,402,987 $ 2,418,268 Apr-11$ 1,015,282 $ 1,402,987 $ 2,418,269 May-11$ 1,353,709 $ 1,402,987 $ 2,756,695 $ 26,996,025 Jun-11$ 1,692,136 $ 1,753,733 $ 3,445,869 Jul-11$ 2,030,563 $ 1,753,733 $ 3,784,296 Aug-11$ 2,538,204 $ 1,929,107 $ 4,467,310 $ 22,838,467 FY 2011 - 2012 Sep-11$ 1,353,709 $ 2,104,480 $ 3,458,189 Oct-11$ 1,353,709 $ 2,279,853 $ 3,633,562 Nov-11$ 1,353,709 $ 2,455,226 $ 3,808,935 Dec-11$ 1,184,495 $ 2,630,600 $ 3,815,095 Jan-12$ 507,641 $ 2,542,913 $ 3,050,554 Feb-12$ 507,641 $ 1,753,733 $ 2,261,374 Mar-12$ 338,427 $ 1,753,733 $ 2,092,160 Apr-12$ 338,427 $ 1,753,733 $ 2,092,160 May-12 $ 1,753,733 $ 1,753,733 Jun-12 $ 1,666,047 $ 1,666,047 Jul-12 $ 1,315,300 $ 1,315,300 Aug-12 $ - $ 28,947,110 Total$ - $ 16,921,360 $ - $ 35,074,665 $ - $ 51,996,025 $ 51,996,025 $ 51,996,025

183 FY 2008 – 2009 Budget Detailed Budget Analysis

Major Maintenance and Capital Replacement: Major maintenance and capital replacement needs in existing facilities are also key inputs into the long range Capital Funds forecast. The District established a capital replacement fund with seed money from fund balance from the General Fund to meet these needs. The District’s capital improvement plan is updated twice a year and it highlights projects for the next three years.

2010 2011 2012

Project Approved Approved Approved Project Description Number Budget Budget Budget

Subtotal - Instructional Proposals (no Staffing Costs) 4,054,439 4,006,173 3,636,057

184 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Capital Project Funds Long Range Forecast

Budget Forecast Forecast Forecast Description FY 2009 FY 2010 FY 2011 FY 2012 Revenues: Local Revenue 2,777,000 3,000,000 3,000,000 3,000,000 State Revenue - - 00 Federal Revenue - - 00

Total Revenues 2,777,000 3,000,000 3,000,000 3,000,000

Expenditures: Instruction & Instruction Related - - - - Instruction & School Leadership - - - - Student Support Services - - - - Administrative Support Services - - - - Plant Maintenance & Operations - - - - Security & Monitoring Services - - - - Technology Services - - - - Ancilliary Services - - - - Debt Services - - - - Capital Outlay 114,278,242 67,983,444 41,604,558 41,299,071 Intergovernmental Charges - - - -

Total Expenditures 114,278,242 67,983,444 41,604,558 41,299,071

Excess (Deficiency) of Revenues Over (Under) Expenditures (111,501,242) (64,983,444) (38,604,558) (38,299,071)

Other Resources 55,600,000 58,975,000 28,996,025 2,000,000 Other (Uses) (3,600,000) - - -

Excess (Deficiency) of Revenues Over (Under) Expenditures and Other Uses 52,000,000 58,975,000 28,996,025 2,000,000

Net Change in Fund Balance (59,501,242) (6,008,444) (9,608,533) (36,299,071)

Fund Balance - September 1 (Beginning) 118,336,880 58,835,638 52,827,194 43,218,661

Increase (Decrease) in Fund Balance - - - -

Fund Balance - August 31 (Ending) 58,835,638 52,827,194 43,218,661 6,919,590

185 FY 2008 – 2009 Budget Detailed Budget Analysis

Debt Service Fund Forecast

Major Impacts The major cost driver in the Debt Service Fund is the size of voter approved bond programs. Clear Creek has issued $300 million in bonds over the last three years to fund both the 2004 and 2007 bond programs. The forecast reflects continued bond sales from the $183 million May 2007 bond program as well as a small bond program in 2010 to possibly build a 27th elementary and 12th intermediate school.

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Debt Service Fund Long Range Forecast

Budget Forecast Forecast Forecast Description FY 2009 FY 2010 FY 2011 FY 2012 Revenues: Local Revenue 46,400,000 46,000,000 50,000,000 52,000,000 State Revenue - - - - Federal Revenue - - - -

Total Revenues 46,400,000 46,000,000 50,000,000 52,000,000

Expenditures: Instruction & Instruction Related - - - - Instruction & School Leadership - - - - Student Support Services - - - - Administrative Support Services - - - - Plant Maintenance & Operations - - - - Security & Monitoring Services - - - - Technology Services - - - - Ancilliary Services - - - - Debt Services 45,800,000 45,400,000 49,900,000 51,900,000 Capital Outlay - - - - Intergovernmental Charges - - - -

Total Expenditures 45,800,000 45,400,000 49,900,000 51,900,000

Excess (Deficiency) of Revenues Over (Under) Expenditures 600,000 600,000 100,000 100,000 - Other Resources - - - - Other Uses - - - -

Total Other Resources and (Uses) - - - -

Other Resources Over Expenditures and Other Uses 600,000 600,000 100,000 100,000

Fund Balance - September 1 (Beginning) 7,125,837 7,725,837 8,325,837 8,425,837

Increase (Decrease) in Fund Balance - - - - Fund Balance - August 31 (Ending) 7,725,837 8,325,837 8,425,837 8,525,837

186 FY 2008 – 2009 Budget Detailed Budget Analysis

Special Revenue Funds Forecast

Major Impacts The Special Revenue Funds are dependent on continued federal and state government funding for various grant programs. Federal program funding has decreased over the last five years. State and local funding, however, has increased somewhat to offset this loss. Overall these funds are projected to grow at a 5.0% annual rate over the next three years. This includes 2.5% annually for inflation plus a modest 2.5% growth rate in programs.

Clear Creek Independent School District Combined Statement of Revenues, Expenditures and Changes in Fund Balance Special Revenue Funds Long Range Forecast

Budget Forecast Forecast Forecast Description FY 2009 FY 2010 FY 2011 FY 2012 Revenues: Local Revenue 3,433,333 3,605,000 3,785,250 3,974,512 State Revenue 5,419,747 5,690,735 5,975,271 6,274,035 Federal Revenue 9,419,694 9,890,679 10,385,213 10,904,474

Total Revenues 18,272,775 19,186,414 20,145,734 21,153,021

Expenditures: Instruction & Instruction Related 13,703,332 14,388,498 15,107,923 15,863,319 Instruction & School Leadership 581,685 610,769 641,308 673,373 Student Support Services 3,358,395 3,526,314 3,702,630 3,887,762 Administrative Support Services 189,000 198,450 208,373 218,791 Plant Maintenance & Operations 33,680 35,364 37,132 38,989 Security & Monitoring Services 3,585 3,764 3,952 4,150 Technology Services - - - - Ancilliary Services 403,098 423,253 444,416 466,637 Debt Services - - - - Capital Outlay - - - - Intergovernmental Charges - - - - - Total Expenditures 18,272,775 19,186,413 20,145,734 21,153,021

Excess (Deficiency) of Revenues Over (Under) Expenditures 0 0 0 0

Other Resources - - - - Other Uses - - - -

Total Other Resources and (Uses) - - - -

Other Resources Over Expenditures and Other Uses 0 0 0 0

Fund Balance - September 1 (Beginning) 412,870 412,870 412,870 412,870

Increase (Decrease) in Fund Balance - - - -

Fund Balance - August 31 (Ending) 412,870 412,870 412,870 412,870

187 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Educational Performance Measures

Texas Assessment of Knowledge and Skills (TAKS) The Texas Assessment of Knowledge and Skills (TAKS) measure the statewide curriculum of specific subjects at specific grade levels and is a completely new testing program. In comparison to the previous state assessment, the TAKS includes a more broad assessment of the Texas Essential Knowledge and Skills (TEKS), which is the statewide curriculum. The TAKS is a more rigorous assessment and questions are asked in a more authentic manner to measure student knowledge of the TEKS.

The 2002-2003 school year was the first year for the TAKS to be administered and is considered somewhat of a transition year for accountability purposes. The District’s 2002 accountability ratings were carried forward to the 2003 school year. Campus 2002 ratings were not carried forward to 2003, but school performance data has been reported on the annual Academic Excellence Indicator System (AEIS) Report and School Report Card. AEIS reports were released in August 2006. A summary of the District’s performance on the TAKS was also made available at that time.

Texas Accountability System

Description 2003 - 2004 2004 - 2005 2005 – 2006 2006 - 2007 2007-2008

Exemplary 6 5 11 15 18

Recognized 18 21 17 13 14

Acceptable 9 8 7 8 6

District Rating Recognized Acceptable Recognized Recognized Recognized

Texas Assessment of Knowledge and Skills (TAKS) 2004– 2005 2005 – 2006 2006 - 2007 2007 - 2008 Description State District State District State District State District Reading/English Language Arts 83% 94% 87% 95% 87% 95% 89% 96% Math 72% 87% 91% 97% 76% 88% 77% 91% Writing 90% 96% 87% 88% 92% 97% 92% 97% Science 66% 84% 75% 95% 73% 86% 70% 89% Social Studies 88% 96% 70% 86% 89% 96% 90% 97%

Note: The TAKS test replaced the Texas Assessment of Academic Skills (TAAS) test in 2002 – 2003. The 2004 – 2005 test is based on the “Panel Recommendation”

188 FY 2008 – 2009 Budget Detailed Budget Analysis

Additional District Performance Measures Performance measures listed below will provide the reader with additional indicators of the excellent education provided by Clear Creek ISD. The District uses a variety of measures to provide staff with information that will improve performance. Currently the District does not utilize satisfaction surveys to solicit this information. Specific data from the Texas Education Agency on performance measures for the FY 2005-2006 school year are not available at this time.

Description State Region IV District Attendance Rate • 2006-07 95.50% 95.40% 96.00% • 2005-06 95.50% 95.40% 95.80% • 2004-05 95.70% 95.70% 96.00% • 2003-04 95.70% 95.80% 96.20% Dropout Rate • 2006-07 0.40% 0.60% 1.30% • 2005-06 2.60% 2.70% 0.20% • 2004-05 0.90% 1.10% 0.20% • 2003-04 0.90% 1.00% 0.40% Completion/Student Status Rate – 2006-07 • Graduated 78.00% 76.60% 90.3 • Received GED 2.00% 1.60% 1.30% • Continued HS 8.70% 9.30% 5.70% • Dropped Out 11.40% 12.40% 2.80% Completion/Student Status Rate – 2005-06 • Graduated 80.40% 79.10% 90.20% • Received GED 2.30% 2.10% 2.20% • Continued HS 8.60% 9.80% 6.30% • Dropped Out 8.80% 9.00% 1.60% Completion/Student Status Rate – 2004-05 • Graduated 84.00% 82.10% 89.00% • Received GED 3.80% 3.60% 4.50% • Continued HS 7.90% 9.00% 5.10% • Dropped Out 4.30% 5.20% 1.40% Completion/Student Status Rate – 2003-04 • Graduated 84.60% 82.80% 88.40% • Received GED 4.20% 4.30% 4.30% • Continued HS 7.30% 8.40% 5.50% • Dropped Out 3.90% 4.50% 1.70%

Completion Rate • 2006-07 86.70% 85.90% 97.20% • 2005-06 88.90% 88.90% 96.40% • 2004-05 91.90% 88.90% 94.10% • 2003-04 95.50% 91.00% 96.70%

189 FY 2008 – 2009 Budget Detailed Budget Analysis

Description State Region IV District Advanced Course Completion • 2006-07 • 2005-06 21.00% 21.60% 27.10% • 2004-05 20.50% 21.50% 25.80% • 2003-04 19.90% 19.80% 20.10%

Recommended/Distinguished Graduation Plan Graduates • 2006-07 • 2005-06 75.70% 74.90% 86.10% • 2004-05 72.30% 69.80% 82.40% • 2003-04 68.40% 66.30% 79.80%

SAT/ACT Results – 2006-07 • Tested 68.20% 70.90% 78.60% • At/Above Criterion 27.00% 30.50% 45.50% • Mean SAT Score 991 1003 1084 • Mean ACT Score 20.1 20.5 22.4

SAT/ACT Results – 2005-06 • Tested 65.80% 66.80% 75.80% • At/Above Criterion 27.10% 30.80% 45.70% • Mean SAT Score 991 1003 1084 • Mean ACT Score 20.1 20.5 22.4 SAT/ACT Results – 2004-05 • Tested 65.50% 67.10% 80.90% • At/Above Criterion 27.40% 31.30% 44.20% • Mean SAT Score 992 1004 1081 • Mean ACT Score 20 20.5 22.9 SAT/ACT Results – 2003-04 • Tested 61.90% 64.10% 81.60% • At/Above Criterion 27.00% 30.90% 43.80% • Mean SAT Score 987 1000 1077 • Mean ACT Score 20.1 20.6 22.5

190 FY 2008 – 2009 Budget Detailed Budget Analysis

Campus Performance Measures

The District is very proud of its academic achievements. Listed below are some key indicators that educators use to measure success. This information is included for all of our high school campuses.

Campus FY 2005 FY 2006 FY 2007 FY 2008 High Schools Clear Creek Acceptable Acceptable Acceptable Acceptable Clear Brook Acceptable Acceptable Acceptable Acceptable Clear Lake Recognized Recognized Acceptable Acceptable Clear Horizons N/AN/AN/AExemplary Clear SpringsN/AN/AN/ARecognized Clear View Alternative Acceptable Acceptable Acceptable Acceptable

Intermediate Schools Brookside Recognized Recognized Recognized Recognized Clear Lake Recognized Acceptable Recognized Acceptable Creekside Recognized Recognized Acceptable Recognized League City Recognized Recognized Recognized Recognized Seabrook Recognized Recognized Recognized Exemplary Space Center Recognized Acceptable Recognized Exemplary Victory Lakes Recognized Recognized Acceptable Acceptable Westbrook Acceptable Recognized Recognized Acceptable

Elementary Schools Armand Bayou Exemplary Recognized Recognized Exemplary Bauerschlag Recognized Exemplary Exemplary Exemplary Bay Recognized Recognized Recognized Exemplary Brookwood Exemplary Exemplary Exemplary Exemplary Clear Lake City Recognized Exemplary Exemplary Exemplary Falcon Pass Recognized Exemplary Recognized Exemplary Ferguson Exemplary Exemplary Exemplary Exemplary Gilmore N/ARecognized Exemplary Exemplary Goforth Recognized Recognized Exemplary Exemplary Greene Recognized Exemplary Exemplary Exemplary Walter Hall Recognized Exemplary Exemplary Exemplary Hyde Acceptable Exemplary Exemplary Recognized Landolt Acceptable Recognized Recognized Recognized League City Acceptable Recognized Acceptable Recognized McWhirter Acceptable Acceptable Acceptable Recognized North Pointe Recognized Exemplary Exemplary Exemplary Robinson N/AN/AExemplary Exemplary Ross Recognized Exemplary Exemplary Exemplary Stewart Exemplary Recognized Exemplary Recognized Ward Exemplary Recognized Recognized Exemplary Weber Recognized Recognized Recognized Recognized Wedgewood Recognized Recognized Exemplary Recognized Whitcomb Recognized Recognized Recognized Recognized White Recognized Exemplary Exemplary Recognized

191 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Brook High School State District Campus Average Attendance Rate • 2006-07 95.50% 96.00% 93.80% • 2005-06 95.50% 95.80% 94.20% • 2004-05 95.70% 96.00% 95.10% • 2003-04 95.70% 96.20% 95.30%

Dropout Rate • 2006-07 0.40% 0.60% 2.50% • 2005-06 2.60% 0.20% 0.40% • 2004-05 0.90% 0.20% 0.50% • 2003-04 0.90% 0.40% 0.50%

Completion/Student Status Rate – 2006-07 • Graduated 78.00% 90.30% 89.20% • Received GED 2.00% 1.30% 1.80% • Continued HS 8.70% 5.70% 6.40% • Dropped Out 11.40% 2.80% 2.50% Completion/Student Status Rate – 2005-06 • Graduated 80.40% 90.20% 88.40% • Received GED 2.30% 2.40% 3.70% • Continued HS 8.60% 6.20% 6.90% • Dropped Out 8.80% 1.20% 1.10% Completion/Student Status Rate – 2004-05 • Graduated 84.00% 89.00% 88.20% • Received GED 3.80% 4.50% 5.00% • Continued HS 7.90% 5.10% 5.20% • Dropped Out 4.30% 1.40% 1.60% Completion/Student Status Rate – 2003-04 • Graduated 84.60% 88.40% 88.10% • Received GED 4.20% 4.30% 4.20% • Continued HS 7.30% 5.50% 6.50% • Dropped Out 3.90% 1.70% 1.30%

Completion Rate • 2006-07 86.70% 97.20% 97.50% • 2005-06 88.90% 96.40% 95.30% • 2004-05 91.90% 94.10% 93.40% • 2003-04 91.90% 93.90% 94.60%

Recommended/Distinguished Graduation Plan Graduates

• 2006-07 77.90% 77.30% 85% • 2005-06 75.70% 86.10% 83.80% • 2004-05 72.30% 82.40% 80.40% • 2003-04 68.40% 79.80% 82.50%

SAT/ACT Results – 2006-07 • Tested 68.20% 70.90% 77.80% • At/Above Criterion 27% 30.50% 38.90% • Mean SAT Score 992 1002 1039 • Mean ACT Score 20.2 20.8 21.4 SAT/ACT Results – 2005-06 • Tested 65.80% 75.80% 73.90% • At/Above Criterion 27.10% 45.70% 40.70% • Mean SAT Score 991 1084 1059 • Mean ACT Score 20.1 22.4 20.7 SAT/ACT Results – 2004-05 • Tested 65.50% 80.90% 80.50% • At/Above Criterion 27.40% 44.20% 36.50% • Mean SAT Score 992 1081 1042 • Mean ACT Score 20 22.9 21.5 SAT/ACT Results – 2003-04 • Tested 61.90% 81.60% 80.70% • At/Above Criterion 27.00% 43.80% 35.10% • Mean SAT Score 987 1077 1029 • Mean ACT Score 20.1 22.5 21.8 192 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Creek High School State District Campus Averag e Attendance Rate • 2006-07 95.50% 96.00% 93.20% • 2004-05 95.70% 96.00% 94.40% • 2005-06 95.50% 95.80% 94.00% • 2003-04 95.70% 96.20% 94.60%

Drop out Rate • 2006-07 0.40% 0.60% 1.30% • 2004-05 0.90% 0.20% 0.20% • 2005-06 2.60% 0.20% 0.40% • 2003-04 0.90% 0.40% 0.60%

Completion/Student Status Rate – 2006-07 • Graduated 78.00% 90.30% 90.00% • Received GED 2.00% 1.30% 1.60% • Continued HS 8.70% 5.70% 5.30% • Dropped Out 11.40% 2.80% 3.00% Completion/Student Status Rate – 2005-06 • Graduated 80.40% 90.20% 89.90% • Received GED 2.30% 2.40% 2.20% • Continued HS 8.60% 6.20% 6.30% • Dropped Out 8.80% 1.20% 1.60% Completion/Student Status Rate – 2004-05 • Graduated 84.00% 89.00% 86.70% • Received GED 3.80% 4.50% 6.20% • Continued HS 7.90% 5.10% 5.90% • Dropped Out 4.30% 1.40% 1.20% Completion/Student Status Rate – 2003-04 • Graduated 84.00% 89.00% 86.70% • Received GED 3.80% 4.50% 6.20% • Continued HS 7.90% 5.10% 5.90% • Dropped Out 4.30% 1.40% 1.20%

Comp letion Rate • 2006-07 86.70% 97.20% 97.00% • 2004-05 91.90% 94.10% 92.60% • 2005-06 88.90% 96.40% 96.30% • 2003-04 91.90% 93.90% 91.90%

Recommended/ Disting uished Graduation Plan Graduates • 2006-07 • 2004-05 72.30% 82.40% 84.10% • 2005-06 75.70% 86.10% 88.10% • 2003-04 68.40% 79.80% 83.20%

SAT/ ACT Results – 2006-07 • Tested 68.20% 7090.00% 7300.00% • At/ Above Criterion 27.00% 3050.00% 3560.00% • Mean SAT Score 992 1002 1039 • Mean ACT Score 20.2 20.8 22.0 SAT/ ACT Results – 2005-06 • Tested 65.80% 75.80% 79.60% • At/ Above Criterion 27.10% 45.70% 38.20% • Mean SAT Score 991 1084 1051 • Mean ACT Score 20.1 22.4 21.9 SAT/ ACT Results – 2004-05 • Tested 65.50% 80.90% 74.90% • At/ Above Criterion 27.40% 44.20% 35.00% • Mean SAT Score 992 1081 1034 • Mean ACT Score 20 22.9 22.4 SAT/ ACT Results – 2003-04 • Tested 61.90% 81.60% 76.20% • At/ Above Criterion 27.00% 43.80% 34.70% • Mean SAT Score 987 1077 1032 • Mean ACT Score 20.1 22.5 21.2

193 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear Lake High School State District Campus Average Attendance Rate • 2006-07 95.50% 96.00% 95.10% • 2005-06 95.50% 95.80% 95.00% • 2004-05 95.70% 96.00% 95.00% • 2003-04 95.70% 96.20% 95.30%

Dropout Rate • 2006-07 0.40% 0.60% 0.90% • 2005-06 2.60% 2.70% 0.30% • 2004-05 0.90% 0.20% 0.30% • 2003-04 0.90% 0.40% 0.60%

Completion/Student Status Rate – 2006-07 • Graduated 78.00% 90.30% 93.50% • Received GED 2.00% 1.30% 0.40% • Continued HS 8.70% 5.70% 3.90% • Dropped Out 11.40% 2.80% 2.20%

Completion/Student Status Rate – 2005-06 • Graduated 80.40% 90.20% 92.20% • Received GED 2.30% 2.40% 1.60% • Continued HS 8.60% 6.20% 5.10% • Dropped Out 8.80% 1.20% 1.10%

Completion/Student Status Rate – 2004-05 • Graduated 84.00% 89.00% 92.10% • Received GED 3.80% 4.50% 2.80% • Continued HS 7.90% 5.10% 3.90% • Dropped Out 4.30% 1.40% 1.30%

Completion/Student Status Rate – 2003-04 • Graduated 84.60% 88.40% 92.50% • Received GED 4.20% 4.30% 3.70% • Continued HS 7.30% 5.50% 2.50% • Dropped Out 3.90% 1.70% 1.30%

Recommended/Distinguished Graduation Plan Graduates

• 2006-07 77.90% 77.30% 87% • 2005-06 75.70% 86.10% 89.90% • 2004-05 72.30% 82.40% 87.00% • 2003-04 68.40% 79.80% 79.90%

Completion Rate • 2006-07 86.70% 97.20% 97.80% • 2005-06 88.90% 96.40% 97.30% • 2004-05 91.90% 94.10% 95.90% • 2003-04 91.90% 93.90% 91.90%

SAT/ACT Results – 2006-07 • Tested 68.20% 70.90% 87.40% • At/Above Criterion 27% 30.50% 59.20% • Mean SAT Score 992 1002 1140 • Mean ACT Score 20.2 20.8 23.8 SAT/ACT Results – 2005-06 • Tested 65.80% 75.80% 77.10% • At/Above Criterion 27.10% 45.70% 56.60% • Mean SAT Score 991 1084 1137 • Mean ACT Score 20.1 22.4 23.6 SAT/ACT Results – 2004-05 • Tested 65.50% 80.90% 89.60% • At/Above Criterion 27.40% 44.20% 55.90% • Mean SAT Score 992 1081 1141 • Mean ACT Score 20 22.9 24 SAT/ACT Results – 2003-04 • Tested 61.90% 81.60% 90.80% • At/Above Criterion 27.00% 43.80% 55.90% • Mean SAT Score 987 1077 1140 • Mean ACT Score 20.1 22.5 23.8 194 FY 2008 – 2009 Budget Detailed Budget Analysis

Clear View Alternative School State District Campus Average Attendance Rate • 2006-07 95.50% 96.00% 91.70% • 2005-06 95.50% 95.80% 93.20% • 2004-05 95.70% 96.00% 94.00% • 2003-04 95.70% 96.20% 94.30%

Dropout Rate • 2006-07 0.40% 0.60% 6.20% • 2005-06 2.60% 0.20% 0.00% • 2004-05 0.90% 0.20% 0.00% • 2003-04 0.90% 0.40% 0.00%

Completion/Student Status Rate – 2006-07 • Graduated 78.00% 90.30% 64.60% • Received GED 2.00% 1.30% 3.10% • Continued HS 8.70% 5.70% 23.10% • Dropped Out 11.40% 2.80% 9.20% Completion/Student Status Rate – 2005-06 • Graduated 80.40% 90.20% 84.40% • Received GED 2.30% 2.40% 0.00% • Continued HS 8.60% 6.20% 15.60% • Dropped Out 8.80% 1.20% 6.20% Completion/Student Status Rate – 2004-05 • Graduated 84.00% 89.00% 82.10% • Received GED 3.80% 4.50% 1.80% • Continued HS 7.90% 5.10% 14.30% • Dropped Out 4.30% 1.40% 1.80% Completion/Student Status Rate – 2003-04 • Graduated 84.60% 88.40% 72.10% • Received GED 4.20% 4.30% 1.60% • Continued HS 7.30% 5.50% 24.60% • Dropped Out 3.90% 1.70% 1.60%

Completion Rate • 2006-07 86.70% 97.20% 90.80% • 2005-06 88.90% 96.40% 100.00% • 2004-05 91.90% 94.10% 96.40% • 2003-04 91.90% 93.90% 96.70%

Recommended/Distinguished Graduation Plan Graduates

• 2006-07 77.90% 77.30% 46.50% • 2005-06 21.00% 27.10% 4.70% • 2004-05 72.30% 82.40% 13.20% • 2003-04 68.40% 79.80% 7.70%

SAT/ACT Results – 2006-07 • Tested 68.20% 70.90% 30.80% • At/Above Criterion 27% 30.50% 0.00% • Mean SAT Score 992 1002 934 • Mean ACT Score 20.2 20.8 N/A SAT/ACT Results – 2005-06 • Tested 65.80% 75.80% 12.80% • At/Above Criterion 27.10% 45.70% 0.00% • Mean SAT Score 991 1084 812 • Mean ACT Score 20.1 22.4 N/A SAT/ACT Results – 2004-05 • Tested 65.50% 80.90% 28.60% • At/Above Criterion 27.40% 44.20% 28.60% • Mean SAT Score 992 1081 968 • Mean ACT Score 20 22.9 N/A SAT/ACT Results – 2003-04 • Tested 61.90% 81.60% 21.30% • At/Above Criterion 27.00% 43.80% 30.00% • Mean SAT Score 987 1077 918 • Mean ACT Score 20.1 22.5 N/A 195 FY 2008 – 2009 Budget Detailed Budget Analysis

♦ Financial Performance Measures

Financial Integrity Rating System of Texas During the 77th regular session of the Texas legislature (2001), Senate Bill 218 was passed and Governor Perry signed it into law shortly thereafter. This law requires each school district to prepare an annual financial accountability report within two months of the date of issuance of the final School FIRST ratings. The District’s received official notification of the 2007 Final School FIRST rating on August 20, 2008 for the 2006-2007 fiscal year. As a result of Hurricane Ike which made landfall on September 13, 2008 the presentation of this report was postponed from September 22, 2008 to October 27, 2008.

Many business-related issues are covered in this report. The primary reporting tool, however, is the Financial Accountability Ratings Worksheet. This worksheet was developed by representatives of the Texas Education Agency (TEA), the Texas Business & Education Council (TBEC) and the Texas Association of School Business Officials (TASBO). It is administered by the TEA and calculated on information submitted to the Agency via our PEIMS submission each year. PEIMS data has always been critical on the student side of the submission, and this project added a great degree of importance to our finance submission each year.

The worksheet consists of 24 Indicators, each weighted equally with the exception of the Critical Indicators. A “No” response in Indicators #1, #2, #3 or #4 or a “No” response to both Indicators #5 and #6 together automatically result in a rating of Substandard Achievement, so these first six Indicators are of utmost importance.

New provisions implemented during the 2006-2007 fiscal year were adopted by the Commissioner’s rulemaking authority. The adopted amendment updates the rating system by adding one new critical indicator, adding two non-critical indicators and enhancing other existing indicators. The amendment establishes a point system for rating districts encompassing the 65% instructional expenditure standard.

Currently, Clear Creek ISD enjoys a rating of “Superior Achievement”, scoring the maximum score of 85 points on the financial accountability worksheet. The worksheet itself and a discussion of its salient points follow.

196 FY 2008 – 2009 Budget Detailed Budget Analysis

2006-2007 DISTRICT STATUS DETAIL

Name: CLEAR CREEK ISD(084910) Publication Level 1: 6/9/2008 1:55:51 PM

Status: Passed Publication Level 2: None

Rating: Superior Achievement Last Updated: 6/9/2008 1:55:51 PM

District Score: 85 Passing Score: 55

# Indicator Description Score

†1 1 Was The Total Fund Balance Less Reserved Fund Balance Greater Than Zero In The + 1 General Fund?

†1 2 Was the Total Unrestricted Net Asset Balance (Net of Accretion of Interest on + 1 Capital Appreciation Bonds) In the Governmental Activities Column in the Statement of Net Assets Greater than Zero? (If the District's 5 Year % Change in Students was 10% more)

†1 3 Were There No Disclosures In The Annual Financial Report And/Or Other Sources + 1 Of Information Concerning Default On Bonded Indebtedness Obligations?

†1 4 Was The Annual Financial Report Filed Within One Month After November 27th or + 1 January 28th Deadline Depending Upon The District's Fiscal Year End Date (June 30th or August 31st)?

†2 5 Was There An Unqualified Opinion in Annual Financial Report? + 1

†2 6 Did The Annual Financial Report Not Disclose Any Instance(s) Of Material + 1 Weaknesses In Internal Controls?

7 Did the Districts Academic Rating Exceed Academically Unacceptable? + 1

8 Was The Three-Year Average Percent Of Total Tax Collections (Including + 1 Delinquent) Greater Than 98%?

197 FY 2008 – 2009 Budget Detailed Budget Analysis

9 Did The Comparison Of PEIMS Data To Like Information In Annual Financial Report + 1 Result In An Aggregate Variance Of Less Than 3 Percent Of Expenditures Per Fund Type (Data Quality Measure)?

10 Were Debt Related Expenditures (Net Of IFA And/Or EDA Allotment) < $250.00 Per + 0 Student? (If The District's Five-Year Percent Change In Students = Or > 7%, Or If Property Taxes Collected Per Penny Of Tax Effort > $200,000 Per Student)

11 Was There No Disclosure In The Annual Audit Report Of Material Noncompliance? + 1

12 Did The District Have Full Accreditation Status In Relation To Financial Management + 1 Practices? (e.g. No Conservator Or Monitor Assigned)

13 Was The Percent Of Operating Expenditures Expended For Instruction More Than + 1 65%? (Functions 11, 36, 93, 95) (Phased in over three years, 55% for 2006-2007; 60% for 2007-2008; and 65% for 2008-2009)

14 Was The Percent Of Operating Expenditures Expended For Instruction More Than or + 1 equal to 65%? (Functions 11, 12, 31, 33, 36, 93, 95)

15 Was The Aggregate Of Budgeted Expenditures And Other Uses Less Than The + 1 Aggregate Of Total Revenues, Other Resources and Fund Balance In General Fund?

16 If The District's Aggregate Fund Balance In The General Fund And Capital Projects + 0 Fund Was Less Than Zero, Were Construction Projects Adequately Financed? (To Avoid Creating Or Adding To The Fund Balance Deficit Situation)

17 Was The Ratio Of Cash And Investments To Deferred Revenues (Excluding Amount + 1 Equal To Net Delinquent Taxes Receivable) In The General Fund Greater Than Or Equal To 1:1? (If Deferred Revenues Are Less Than Net Delinquent Taxes Receivable)

18 Was The Administrative Cost Ratio Less Than The Threshold Ratio? + 1

19 Was The Ratio Of Students To Teachers Within the Ranges Shown Below According + 1 To District Size?

20 Was The Ratio Of Students To Total Staff Within the Ranges Shown Below + 1

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According To District Size?

21 Was The Total Fund Balance In The General Fund More Than 50% And Less Than + 1 150% Of Optimum According To The Fund Balance And Cash Flow Calculation Worksheet In The Annual Financial Report?

22 Was The Decrease In Undesignated Unreserved Fund Balance < 20% Over Two + 0 Fiscal Years?(If 1.5 Times Optimum Fund Balance < Total Fund Balance In General Fund Or If Total Revenues > Operating Expenditures In The General Fund, Then District Receives 5 Points)

23 Was The Aggregate Total Of Cash And Investments In The General Fund More Than + 1 $0?

24 Were Investment Earnings In All Funds (Excluding Debt Service Fund and Capital + 1 Projects Fund) More Than $20 Per Student?

= 85 Score

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DETERMINATION OF RATING

A. Did The District Answer 'No' To Indicators 1, 2, 3 Or 4? OR Did The District Answer 'No' To Both 5 and 6? If So, The District’s Rating Is Substandard Achievement.

B. Determine Rating By Applicable Range For summation of the indicator scores (Indicators 7-24)

Superior 75-85 and Yes to indicator 7 Achievement

Above Standard 65-74 or >= 75 and No to indicator 7 Achievement

Standard 55-64 Achievement

Substandard <55 or No to one default indicator Achievement

INDICATOR 19 & 20 RATIOS

Indicator 19 Ranges for Indicator 20 Ranges for Ratios Ratios

District Size - Number of Students District Size - Number of Students Low High Low High Between Between

< 500 7 22 < 500 5 14

500-999 10 22 500-999 5.8 14

1000-4999 11.5 22 1000-4999 6.3 14

5000-9999 13 22 5000-9999 6.8 14

=> 10000 13.5 22 => 10000 7.0 14

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♦ Analysis of F.I.R.S.T. Ratings

Critical Indicators Indicators #1 through #6 are the critical indicators. Any “NO” response in this category is a signal indicator of fiscal distress. These six indicators revolve around the audit report, fund balance and the auditor’s findings. If General Fund Balance is greater than zero and the auditors issue a “clean” opinion, a District will pass the critical indicators. For the 2006-07 fiscal year, Clear Creek ISD had a General Fund Balance of $53.5 million and passed all other critical indicators.

Fiscal Responsibility Indicators #8 through #12 concern fiscal responsibility. Clear Creek ISD’s percentage of tax collections easily exceeds the increased minimum standard of 98.0% required in Indicator #8. For the year under review, taxes were collected at a rate of 99.7%. The District passed Indicator #9 which required that the District’s PEIMS financial data submission agree to the Annual Financial Report. The District also passed Indicator #10 due to taxes collected per penny of tax effort exceeding $200,000. Indicators #11 and #12 are very similar to the Critical Indicators, and Clear Creek easily passed these two on audit and full financial accreditation status.

Budgeting Indicators #13 through #17 concern budgeting, management and cash flow practices. This indicator will phase in over three years to 65% for 2008-2009. The District expends 61.7% of its operating expenditures for direct classroom instruction, which is beyond the 55% required in Indicator #13. The District adequately funds its budget and capital projects. Most importantly, as addressed in Indicator #17, the District does not spend cash it cannot afford to spend or cannot recognize as revenue.

Personnel Indicators #18 through #20 address staffing patterns. For the 2006-07 year, the District’s administrative cost ratio was well below that of the State standard of 11.05% at 6.14%. This item is addressed in more detail later in the report. Indicators #19 and #20 deal with staffing patterns, specifically students to classroom teachers and students to total staff. A District must fall into a certain range to meet these indicators, which means understaffing or overstaffing can trigger a “NO” response. The District falls safely within the prescribed ranges for each indicator at 16.3 students per classroom teacher and 8.6 students per staff member.

Cash Management The final four indicators deal with cash management practices. Indicator #21 concerns the fund balance figure and whether it is too high or low. Clear Creek’s General Fund Balance for the 2006-07 year was within the allowable range permitted by this indicator. Indicator #22 deals with any decrease in General Fund Balance over two years. Since our undesignated unreserved fund balance increased each of the two years, we easily met this indicator. Cash and Investments were greater than $0, so Indicator #23 was easily surpassed, and investment earnings were approximately $164 per student, exceeding the minimum standard of $20 per student set forth in Indicator #24.

Summary The Clear Creek ISD School Board, administration and the community have worked hard to improve the financial position and condition of the District over the past several years. This report demonstrates this improvement to all concerned.

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♦ District Achievements

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♦ Employee Resource Allocations

CLEAR CREEK INDEPENDENT SCHOOL DISTRICT FULL-TIME EQUIVALENT DISTRICT EMPLOYEES BY POSITION

Description 2004 2005 2006 2007 2008

Teachers 2,099 2,203 2,329 2,483 2,577

Technology 30 33 34 33 36

Auxiliary Transportation 174 182 196 212 221 Food Service 245 250 235 235 250 Maintenance - Custodial 223 244 246 250 250 Maintenance - Other 56 53 56 51 57 Security 3 3 4 7 7 701 732 737 755 785

Other Part-time 330 206 235 273 273

Total 3,860 3,941 4,127 4,365 4,533 203 FY 2008 – 2009 Budget Detailed Budget Analysis

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♦ Glossary

This glossary contains definitions of terms used in this guide and such additional terms as seem necessary to common understandings concerning financial accounting procedures for schools. Several terms, which are not primarily financial accounting terms, have been included because of their significance for school financial accounting. The glossary is arranged alphabetically with appropriate cross-referencing where necessary.

Abatement – A complete or partial cancellation of a levy imposed by a governmental unit. Abatements usually apply to tax levies, special assessments, and service previously recorded expenditure or receipt item by such things as refunds, rebates, and collections for loss or damage to school property.

Account – This is a descriptive heading under which are recorded financial transactions that are similar in terms of a given frame of reference, such as purpose, object, or source.

Accounting Period – A period at the end of which and for which financial statements are prepared; for example, September 1 through August 31.

Accrual – A method of accounting that recognizes the financial effect of transactions, events, and inter-fund activities when they occur, regardless of the timing of related cash flows.

ACT – Acronym for American College Test.

ADA – Acronym for Average Daily Attendance.

Administration – Those activities which have as their purpose the general regulation, direction, and control of the affairs of the local education agency that are system-wide and not confined to one school, subject, or narrow phase of school activity.

AEIS – Acronym for Academic Excellence Indicator System.

AIS – Acronym for Accelerated Instructional Services.

Allocation – A part of a lump-sum appropriation which is designated for expenditure by specific organization units and/or for special purposes, activities, or objects.

Amendment – A proposal to change the amount or scope of an activity or project after the budget has already been submitted to the Board.

AP – Acronym for Advanced Placement.

Appraisal – (1) The act of appraising. (2) The estimated value resulting from such action.

Appraise – To make an estimate of value, particularly of the value of property. Note: if the property is valued for purposes of taxation, the less-inclusive term “assess” is substituted for the above term.

Appropriation Account – A budgetary account set up to record specific authorization to spend. The account is credited with original and any supplemental appropriations and is charged with expenditures and encumbrances.

Assess – To value property officially for the purpose of taxation. Note, the term is also sometimes used to denote the levy of taxes, but such usage is not correct because it fails to distinguish between the valuation process and the tax levy process.

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Assessed Valuation – A valuation set upon real estate or other property by a government as a basis for levying taxes.

Assets – Property owned by a local education agency which has a monetary value.

Balance Sheet – An itemized statement that lists the total assets and the total liabilities of a given business to portray its net worth at a given moment of time. The amounts shown on a balance sheet are generally the historic cost of items and not their current values.

Benefits – A payment or entitlement, such as one made under an insurance policy or employment agreement, public assistance program, or something of value or usefulness.

Bill – (1) A term used to denote a law or statute passed by certain legislative bodies. A bill has greater legal formality and standing than a resolution. (2) A statement of an amount owing for goods and services sold on open account.

Board of Education – The elected or appointed body, which has been created according to State law and vested with responsibilities for educational activities in a given geographical area. These bodies are sometimes called school boards, governing boards, boards of directors, school committees, school trustees, etc. This definition relates to the general term and covers State boards, intermediate administrative unit boards, and local basic administrative unit boards.

Bond – A written promise, generally under seal, to pay a specified sum of money, called the face value, at a fixed time in the future, called the date of maturity, and carrying interest at a fixed rate, usually payable periodically. The difference between a note and a bond is that the latter usually runs for a longer periods of time and requires greater legal formality.

Bonded Debt – Bonded debt is the part of the school district debt which is covered by outstanding bonds of the district. This is sometimes referred to as “Funded Debt or Bonded Indebtedness.”

Bonds Authorized and Un-issued – Bonds that have been legally authorized but not issued and which can be issued and sold without further authorization.

Bonds Issued – Bonds sold.

Bonds Payable – The face value of bonds issued and unpaid.

Budget – A plan of financial operation embodying an estimate of proposed expenditures for a given period or purpose and the proposed means of financing them. The budget usually consists of three parts: The first part contains a message from the budget-making authority together with a summary of the proposed expenditures and the means of financing them. The second part consists of schedules supporting the summary. These schedules show in detail the proposed expenditures and means of financing them, together with information as to past years’ actual revenues and expenditures and other data used in making the estimates. The third part is composed of drafts of the appropriation, revenue, and borrowing measures necessary to put the budget into effect.

Budgetary Accounts – These accounts are necessary to reflect budget operations and conditions, such as estimated revenues, appropriations, and encumbrances, the net balance, and other related information.

Capital Budget – A plan of proposed capital outlays and the means of financing them for the fiscal period. It is usually a part of the current budget. A capital program is sometimes referred to as a capital budget.

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Capital Outlays – Expenditures which result in the acquisition of or addition to fixed assets.

Capital Program – A plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs arising from the long term work program or otherwise. It sets forth each project or other contemplated expenditure in which the local education agency is to have a part and specifies the full resources estimated to be available to finance the projected expenditures.

Co-curricular Activities – Direct and personal services for public school pupils, such as inter- scholastic athletics, entertainments, publications, clubs, band, and orchestra, that are managed or operated by the student body under the guidance and direction of an adult, and are not part of the regular instructional program.

Community Services – Services which are provided for the community as a whole or some segment of the community and which are not restricted to the public schools or adult education programs.

Consultant – A resource person who provides assistance to the regular personnel through conference, demonstration, research, or other means. There are two types of consultants; those retained on a temporary basis and those who are permanently employed.

Contracted Services – Labor, material, and other costs for services rendered by personnel who are not on the payroll of the local education agency.

Credit Rating – A published ranking, based on detailed financial analysis by a credit bureau, of one's financial history, specifically as it relates to one's ability to meet debt obligations. The highest rating is usually AAA, and the lowest is D. Lenders use this information to decide whether to approve a loan.

Current – As used in this manual, the term has reference to the fiscal year in progress.

Current Budget – The annual budget prepared for and effective during the present fiscal year.

Current Expenditures per Pupil – Current expenditures for a given period of time divided by a pupil unit of measure (average daily membership, average daily attendance)

Current Year’s Tax Levy – Taxes levied for the current fiscal period.

Debt – An obligation resulting from the borrowing of money or from the purchase of goods and services. Debts of local education agencies include bonds, warrants, and notes, etc.

Debt Limit – The maximum amount of gross or net debt which is legally permitted.

Debt Service – Debt Service refers to the semi-annual amount of money needed to pay the interest and principal payments on a bond issue.

Debt Service Fund – A fund used to account for the accumulation of resources and payment of principal and interest on all bonds.

Defease – To render null and void an agreement, commitment or obligation specified in a written document. When a bond issue is refunded and an escrow is established for the benefit of its bondholders the terms of the original indenture and obligations of the Trustee are generally said to have been defeased. The Original trust indenture is supplanted by the newly formed escrow agreement.

Deficit – The excess of the obligations of a fund over the fund’s resources.

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Delinquent Taxes – Taxes remaining unpaid on and after the date on which they become delinquent by statute.

DTR – Acronym for district tax rate.

Encumbrances – Commitments related to unperformed (executory) contracts for goods or services.

EOC – Acronym for End of Course.

ES – Acronym for Elementary School.

Estimated Revenue – When the accounts are kept on an accrual basis, this term designates the amount of revenue estimated to accrue during a given period regardless of whether or not it is all to be collected during the period.

Existing Debt Allotment (EDA) – Sometimes referred to as Tier III funding. Granted by the 1999 Legislature guarantees $35 per student in state and local funds for each cent of effort (up to a maximum of $.12 per $100 valuation) to pay the principal and interest on eligible bonds. Eligible bonds are those that require a debt service payment during the 1998-99 fiscal year.

Expenditures – This includes total charges incurred, whether paid or unpaid, for current expense, capital outlay, and debt service. (Transfers between funds, encumbrances, and payments of cash in settlement of liabilities already accounted as expenditures are not considered as expenditures.)

Expenses - Charges incurred, whether paid or unpaid, for operation, maintenance, interest, and other charges which are presumed to benefit the current fiscal period. Note: legal provisions sometimes make it necessary to treat as expenses some charges whose benefits extend over future periods. For example, purchases of materials and supplies which may be used over a period of more than one year and payments for insurance which is to be in force for a period longer than one year frequently must be charged in their entirety to the appropriation of the year in which they are incurred and classified as expenses of that year even though their benefits extend also to other periods.

Fiscal Year – A twelve-month period of time to which the annual budget applies and at the end of which a local education agency determines its financial position and the results of its operations.

Fixed Assets – Land, building, machinery, furniture, and other equipment that the school district intends to hold or continue in use over a long period of time. “Fixed” denotes probability or intent to continue use or possession, and does not indicate immobility of an asset.

Food Service – Those activities which have as their purpose the preparation and serving of regular and incidental meals, lunches, or snacks in connection with school activities.

FTE – Acronym for full-time equivalent.

Function – As applied to expenditures, this term has reference to an activity or service aimed at accomplishing a certain purpose or end; for example, Instruction, Instructional Administration, Plant Maintenance and Operations.

Fund – A sum of money or other resource set-aside for specific activities of a school district. The fund accounts constitute a complete entity and all of the financial transactions for the particular fund are recorded in them.

Fund Accounting – A method of accounting that separates and tracks financial transactions to meet restrictions and reporting requirements imposed by funding sources.

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Fund Balance – The excess of assets of a fund over its liabilities and reserves. During the fiscal year prior to closing, it represents the excess of the fund’s assets and estimated revenues for the period over its liabilities, reserves, and appropriations for the period.

GAAP – Acronym for Generally Accepted Accounting Principles.

GASB – Acronym for Governmental Accounting Standards Board.

GED – Acronym for General Educational Development.

General Fund – A fund used to finance the ordinary operations of the local education agency. It is available for a legally authorized purpose and consists of money not specifically designated for some other particular purpose.

General Obligation Bonds – Bonds that carry a pledge of the general taxing power for the payment of debt obligations. General Obligation bonds are backed by the full faith and credit of the issuing governmental agency.

HB – Acronym for House Bill.

HS – Acronym for High School.

IB – Acronym for International Baccalaureate.

Instruction – The activities dealing directly with the teaching of students or improving the quality of teaching.

Instructional Facilities Allotment (IFA) – Granted by House Bill 4 in 1997, program provides a guaranteed level ($35) of state and local funds per student per penny of tax effort applicable to debt service on eligible bonds. However, there is a limit on funding for each biennium so the District must apply for funding. The applications are ranked based on relative property wealth and funds are awarded up to the dollar limit available.

Interest – A fee charged a borrower for the use of money.

Inventory – A detailed list or record showing quantities, descriptions, values, and frequency, units of measure, and unit prices of property on hand.

I & S – Acronym for Interest & Sinking Fund (Debt Service Fund).

ISD – Acronym for Independent School District.

LAN – Acronym for local area network.

LEAP – The Learning Enrichment Academic Program is a program for students showing evidence of high performance in the area of general intellectual ability. The LEAP program identifies and serves children demonstrating giftedness revealed by learning potential tests.

Levy – (Verb) To impose taxes or special assessments. (Noun) The total of taxes or special assessments imposed by a governmental unit.

Long-Term Loan – A loan which extends for more than 5 years from the date the loan was obtained and is not secured by serial or term bonds. Such loans are not legal in Texas under the general statutes.

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Modified Accrual Basis of Accounting – Basis of accounting according to which (a) revenues are recognized in the accounting period in which they become available and measurable and (b) expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on general long-term debt and certain similar accrued obligations, which should be recognized when due.

M & O – Acronym for Maintenance and Operations Fund (General Fund).

MS – Acronym for Middle School.

Object – As applied to expenditures, this term has reference to an article or service received; for example, payroll costs purchased and contracted services, materials, and supplies.

Payroll – A list of individual employees entitled to pay, with the amounts due to each for personal services rendered.

Performance Measures – The specified level of performance on a specific performance indicator.

PEIMS – Acronym for Public Education Information Management System.

Personnel, Full-Time – School employees who occupy positions the duties of which require them to be on the job on school days, throughout the school year, at least the number of hours the schools in the system are in session. Full-time work days are generally 7.5 hours.

Personnel, Part-Time – Personnel who occupy positions, the duties of which require less than full time-service. This includes those employed full-time for part of the school year, part-time for all of the school year, and part-time for part of the school year. See also Personnel, Full-Time.

PLAN – A software guidance resource that helps students measure their current academic development, explore career and training options, and make plans for the remaining year of high school and post-graduation years.

Plant Maintenance (Plant Repairs and Repairs and Replacements of Equipment) – Those activities which are concerned with keeping the grounds, buildings, and equipment at their original condition or completeness or efficiency, either through repairs or by replacements of property (anything less than replacement of a total building).

PO – Acronym for Purchase Order.

PPCD – Preschool Programs for Children with Disabilities is available for children aged 3 through 5. Students are provided instruction in all areas of early childhood development.

Principal of a School – The administrative head of a school (not school district) to who has been delegated the major responsibility for the coordination and supervision of the activities of the school.

Principal of Bonds – The face value of bonds.

Program – The definition of an effort to accomplish a specific objective or objectives consistent with funds or resources available. Budgets and actual revenue and expenditure records may be maintained per program.

Program Budget – A budget wherein expenditures are based primarily on programs of work and secondarily on character and object. A program budget is a transitional type of budget between the traditional character and object number, on the one hand, and the performance budget on the other.

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Property Taxes – The valuation of property in the School District is determined by the County Tax Assessor. The School District levies a tax per $100 of assessed valuation.

PSAT – Acronym for Preliminary Standardized Achievement Tests.

Purchase Order – A document authorizing the delivery of specified merchandise or the rendering of certain services and the making of a charge for them.

RADA – Acronym for Refined Average Daily Attendance.

Recapture – The recovery of financial resources from districts defined by the state as high property wealth.

Refunding Bonds – Bonds issued to pay off bonds already outstanding.

Reimbursement – Cash or other assets received as a repayment of the cost of work or services performed, or of other expenditures made for or on behalf of another governmental unit or department, or for an individual, firm, or corporation.

Reserve – An amount set aside for a specified purpose, or an account which records a portion of the fund balance that is to be segregated for some future use and, therefore, is not available for further appropriation and expenditure.

Salary – The total amount regularly paid or stipulated to be paid to an individual, before deductions, for personal services rendered while on the payroll of the school district. Payments for sabbatical leave are also considered as salary.

SAT – Acronym for Standardized Achievement Tests.

School – A division of the school system consisting of a group of pupils composed of one or more teachers to give instruction of a defined type, and housed in a school plant of one or more buildings. More than one school may be housed in one school plant, as is the case when the elementary and secondary programs are housed in the same school plant.

School, Elementary – A school classified as elementary by State and local practice and composed of any span of grades not above grade six. In this District this term includes kindergartens and pre- kindergartens and goes through grade five.

School, Intermediate – A separately organized elementary school intermediate between elementary and middle school.

School, Middle – A separately organized secondary school intermediate between elementary, intermediate, and senior high school. In this District middle schools include grades six through eight.

School, Public – A school operated by publicly elected or appointed school officials in which the program and activities are under the control of these officials and which is supported by public funds.

School, Secondary – In this handbook a secondary school comprises any span of grades beginning with the next grade following the elementary/intermediate school and ending with or below grade 12, including middle schools, the different type of high schools, and alternative high schools.

School, Senior High – Schools offering the final years of high school work necessary for graduation; invariably preceded by a middle school in the same system.

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School, Summer – The name applied to the school session carried on during the period between the end of the regular school term and the beginning of the next regular school term.

Serial Bonds – Bonds whose principal is to be repaid in periodic installments over the life of the issue.

Special Revenue Fund – A governmental fund type used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditure for specified purposes.

State Aid for Education – Any grant made by a State government for the support of education.

Student Wealth – Assessed value of property divided by school enrollment.

Supplemental Taxes – Taxes levied subsequent to the initial levy to add property omitted from the original tax roll(s).

Supply – A material item of an expendable nature that is consumed, worn out, or deteriorated in use; or one that loses its identity through fabrication or incorporation into a different or more complex unit or substance.

TAAS – Acronym for Texas Assessment Academic Skills exam.

TAKS – Acronym for Texas Assessment and Knowledge Skills Program.

TASP – Acronym for Texas Academic Skills Program.

Taxes – Compulsory charges levied by a governmental unit for the purpose of financing services performed for the common benefit. The term includes licenses and permits. It does not include special assessments.

Tax Year – The twelve-month reporting period for which you are filing your taxes.

TEA – Acronym for the Texas Education Agency.

TEKS – Acronym for Texas Essential Knowledge and Skills.

TLI – Acronym for Texas Learning Index.

TRS – Acronym for Teacher Retirement System.

Unencumbered Balance of Appropriation – That portion of an appropriation not yet expended or encumbered; the balance remaining after deducting from the appropriation the accumulated expenditures and outstanding encumbrances.

Unexpended Balance of Appropriation – That portion of an appropriation not yet expended; the balance remaining after deducting from the appropriation the accumulated expenditures.

Unit Cost – Expenditures for a function, activity, or service divided by the total number of units for which the function, activity, or service was provided.

WADA – Acronym for Weighted Average Daily Attendance.

WAN – Acronym for wide area network.

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Workers’ Compensation – Compensation provided to employees who are injured or contract an occupational disease due to their employment.

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214