The Argyle school district is foreseeing a deficit of nearly $269,000 in its draft of the 2008-09 budget.

Its revenue budget of $15,217,788 is based on an estimated enrollment of 1,740 students, an increase of about 30 students from current figures, said Paul Lyles, the district’s chief financial officer.

The district’s expenses are estimated at $15,486,753, he said, including its almost $1.6 million payment to the state for being a Chapter 41, or “property rich,” district.

Budget expenses have increased by slightly more than $900,000 from the 2007-08 school year, according to the district’s preliminary budget, whereas revenue has only increased by nearly $764,000.

The main increases in expenses include the additional cost for operating the renovated Argyle Intermediate School, as well as funding the new soccer coach position, Lyles said.

He said other contributing factors included fuel and utility cost increases and the district’s salary raises, while enrollment has been mostly flat.

The teachers and other staff members were given pay raises that equaled one step up on their pay scales, which worked out to about a 3 percent increase, Lyles said.

Lyles said if the deficit is not made up over the upcoming school fiscal year, the district could cover it from its general fund, which is about $2.8 million.

On average, it costs the district about $1.2 million to cover one month of operating costs, he said.

The district is not proposing any changes to its $1.41 per $100 valuation tax rate for the 2008-09 school year.

Last year, with the passing of the 2007 bond election, the district had projected a $1.54 tax rate, but, Lyles said, the district has a $1.7 million debt service fund balance that will help cover the upcoming year’s increased debt service payments.

School board members set Aug. 26 at 6 p.m. as the date and time for a public hearing on the budget and tax rate.

They are required to adopt a budget before the next fiscal year starts on Sept. 1.

Argyle joins at least three other area school districts that are facing the possibility of budget deficits.

The Denton school district, whose fiscal year started July 1, already has passed a budget with a $2.2 million deficit, which it plans to cover with money from its general fund.

AMY DODD THOMPSON can be reached at 940-566-6876. Her e-mail address is athompson@dentonrc.com .