CE(LOCAL) - ANNUAL OPERATING BUDGET

Fiscal Year

The District shall operate on a fiscal year beginning July 1 and ending June 30.

Budget Planning

Budget planning shall be an integral part of overall program planning so that the budget effectively reflects the District's programs and activities and provides the resources 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 planning and decision-making committees. Budget planning and evaluation are continuous processes and shall be a part of each month's activities.

Budget Meeting

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

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

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

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

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 in the fund balance.

Fund Balance Targets

The District shall target a total general fund balance that is sufficient to maintain the District's bond ratings at investment grade or higher, as designated by nationally recognized rating agencies.

The goals of the unassigned general fund balance target shall be to:

Provide sufficient funds for unexpected events;

Handle major emergencies;

Ensure continued orderly operation of the District; and

Ensure continued tax stability.

If appropriations from the general fund reduce the unassigned fund balance such that the District determines the target goals cannot be achieved, the District shall establish a budgetary plan to replenish the general fund unassigned fund balance to the target level.

Fund Balance Commitment

The Board shall have the sole authority to commit fund balance for a specific purpose. If the amount of fund balance subject to commitment is not known at the time of the commitment, the Superintendent or designee shall identify an amount prior to issuing the annual financial statements.

Fund Balance Assignment

When it is appropriate for fund balance to be assigned, the Board delegates the authority to assign fund balance to the Superintendent or designee.

Release from Restriction, Commitment, or Assignment

Fund balance shall be considered released from restriction, commitment, or assignment as expenditures are incurred for the purpose of the restriction, commitment, or assignment.

In circumstances where an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, resources shall be expended in the following order: restricted fund balance, committed fund balance, assigned fund balance, and unassigned fund balance.

North East ISD

CE(LOCAL)-X

LDU 2011.01

DATE ISSUED: 7/21/2011