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9 The District provides a well-rounded program of public education for children from pre-kindergarten through grade twelve. In addition to basic instructional programs, the District offers special education, gifted and talented, Bilingual/ESL, intervention, college preparatory, and career and technical programs. The District is fully accredited by the Texas Education Agency (TEA). Hays CISD operates thirteen elementary schools, five middle schools, two comprehensive high schools, one alternative education program high school, and one disciplinary alternative education program campus. The District s enrollment, for budget purposes, was 16,450 which is an increase of 4% from Enrollment for was 16,511 on December 12, ECONOMIC INFORMATION Hays County, created in 1848, is located in south central Texas and is a component of the Austin Metropolitan Statistical Area. Hays County is traversed by Interstate Highway 35, U.S. Highway 290, State Highways 21 and 123 with the City of San Marcos as the county seat. State Highway 130 is a new commuter roadway that is being constructed on the outskirts of the district to relieve congestion on IH 35 and will extend from north of Georgetown, east of metropolitan Austin, to I-10 near Seguin. Hays County is diversified by tourism, education, agriculture, retail, healthcare, and manufacturing. Kyle, Buda and San Marcos are located within what has become known as the Austin/San Antonio Corridor along Interstate Highway 35. Austin and San Antonio are two anchors of a region which includes several million people. The District s population has grown to an estimated 72,770, up from the 2000 census number of 29,892, making it one of the fastest growing school districts in Texas. Residents in Hays County have easy access to higher education including the University of Texas, Texas State University, and Austin Community College. The Hays Consolidated Independent School District covers land which was once used primarily for ranching and recreational area. Residential and retail development has steadily increased in the last ten years. The cities of Kyle and Buda are located on Interstate Highway 35 between San Marcos and Austin. Extensive roadway improvement projects, the construction of Austin Community College, and the addition of a large, regional hospital complex that opened in 2009 will continue to drive growth in the District. REPORT INFORMATION The Comprehensive Annual Financial Report is prepared in accordance with generally accepted accounting principles (GAAP) and in conformance with standards of financial reporting established by the Governmental Accounting Standards Board (GASB) using guidelines recommended by the Government Finance Officers Association of the United States and Canada (GFOA). All funds of the district are covered by this report. The district s financial policies address accounting and fiscal operations of the district, with an emphasis on asset, procurement, and budget management. The district maintains budgetary controls, and the objective is to ensure compliance with legal provisions embodied in the annual budget approved by the District s Board of Trustees. The annual expenditure budget serves as the foundation for the district s financial planning and control. Every school district in Texas is required, by law, to prepare and file a budget with the Texas Education Agency (TEA). The board legally adopts a budget for the General Fund, Debt Service Fund, and Child Nutrition Fund. Budgets for Special Revenue Funds (other than Child Nutrition) and Capital Projects Funds are prepared on a project bases, based on grant regulations or applicable bond ordinances. Budgetary control (the level at which expenditures cannot legally exceed appropriations) is mandated at the functional category level within each fund. These functional categories are defined by TEA and identify the purpose of transactions. The District also maintains an encumbrance accounting system as one technique of accomplishing budgetary control. Encumbered amounts lapse at year end unless specifically identified for rollover into the next fiscal year. LONG TERM FINANCIAL PLANNING At a national level, the United States has been in a recession since The State of Texas has weathered the economic downturn better than most states, in part because of large size and diverse economy. As a result of the recession, most school districts across Texas saw taxable property values decline though not as dramatically as in other states. The District s taxable property values have not declined, but have continued to increase at a slower pace over the past 4 years. During the 2011 Legislative Session, the Legislature enacted a budget that cut $4 billion from the Foundation School Program for the State fiscal biennium, as compared to the funding level school districts were entitled to under the current funding formulas. Various grants were also cut approximately $1.3 billion (pre-kindergarten grant program, student success initiative, etc.). These cuts were made in light of a projected State deficit of up to $27 billion for the biennium. iii
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