LAKE DALLAS — While school district officials here say they are pleased to see an increase in Lake Dallas’ state funding revenue, their pleasure may be bittersweet.

Growth in student enrollment led to the Lake Dallas school district seeing an increase in state revenue during the 2008-09 school year, according to a recent financial audit.

Entering the 2008-09 school year, the district created a budget with a $400,000 surplus and no anticipated student growth. To its surprise, district enrollment grew by 2.4 percent and Lake Dallas received roughly an additional $325,000 in revenue from the state, said Wes Eversole, district deputy superintendent and chief financial officer.

“We were happy with the audit,” Eversole said.

Still, Eversole said, he’s concerned about the future. Talk of Texas possibly facing a multibillion-dollar deficit can directly affect funding for school districts and their programs, Eversole said, and could also change the way the district prepares its future budgets.

“We’re concerned as anyone else is with our funding,” he said.

As a direct result of increased student enrollment, Eversole said, Lake Dallas was able to increase its general fund balance — the savings its carries from year to year — by $1.2 million, bringing reserves to a total of more than $6.3 million during the 2008-09 school year. In addition to attributing increased revenue to enrollment growth, the audit report showed that Lake Dallas’ fund balance was boosted by cost savings, primarily in utilities, Eversole said, and an almost $24,000 increase in revenue from local property taxes.

The Texas Education Agency recommends that school districts have funds in savings to cover operating costs for at least a couple of months in case of an emergency. According to Lake Dallas’ financial audit, it was reported that it generally costs the district more than $3 million monthly to cover operating expenses during the regular school year.

The audit shows that it’s recommended the district have an optimum fund balance and cash flow of more than $5.3 million for covering operating costs in case of emergency.

“We’re comfortable between the 60- to 90-day range,” Eversole said regarding needed funds in case of emergency. “We’re a little shy of that [90 days], but in this economy we’re happy with that fund balance.”

Independent auditors with the firm Hankins, Eastup, Deaton, Tonn & Seay examined district finances for the 2008-09 fiscal year, which ended Aug. 31, and reported no noncompliance issues or questioned costs, the report showed. According to the report, the Lake Dallas school district received an unqualified opinion — the highest mark for an audit. An overview of the financial audit report was presented to school board trustees late last month.

“It was an outstanding audit report, as usual,” said Sandy Drusch, school board president. “It was a very clean audit.”

The district received a financial breather when voters approved a tax increase of 13 cents in 2008, avoiding deficit budgets, Drusch said. But funding for schools will only become more challenging, she said, and the district will have the tough challenge of making do with the funding handed to it by the state. She said that while Texas is better off than many other states in dealing with funding its schools, she knows tough times are ahead and funding will be tight.

“It’s scary,” Drusch said.

To view Lake Dallas’ complete audit report, visit www.ldisd.net.

BRITNEY TABOR can be reached at 940-566-6876. Her e-mail address is btabor@dentonrc.com.

IN OTHER ACTION

Lake Dallas school board trustees recently approved an extension for Superintendent Gayle Stinson’s contract through 2015. Stinson was hired to lead the district in 2007.