Positive Numbers In 2009-10 DISD Audit

DALLAS (CBSDFW.COM) - All seems to be calm right now on the money front for the Dallas Independent School District. But, many are keeping a watchful eye.

A preliminary report from auditors showed no major weaknesses in the district's financial operations, but doesn't address the looming financial challenge Dallas and other North Texas school districts are about to face.

The DISD still has system deficiencies that impact oversight of who's been hired, and the money to pay them.

But the audit on Monday is a long leap away from the one done in 2008. You could refer to it as, "The Year of the Mess'. At the end of that audit 700 teaching jobs were being eyed for elimination and the district didn't have the necessary $80 million to pay teacher salaries.

The Dallas school system's ability to follow the money, account for its' spending or even its' availability of funds, added up to a year of public protests from teachers and calls for Superintendent Michael Hinojosa's job.

On Monday morning, auditors outlined Dallas ISD's financial turnaround and Hinojosa wanted taxpayers to know it. "It's important that the taxpayer dollars are working the way they're supposed to work," he said. "That's what is expected of us."

The audit not only shows no leaks in the district's financial operations, for the first time in four years, but auditors also added up more money in the bank. The DISD has $100 million fund balance.

But, 25-cents of every dollar used to operate Dallas schools comes from state funding and if lawmakers cut spending, because of state budget deficits, public schools throughout Texas will have to adjust. That could lead to cuts in the classroom.

"If our revenue is reduced, we're going to be suffering, along with everyone else, and so it's going to be a big issue over the next several months," explained Hinojosa.

As it stands, there is also $19 million in stimulus funding paying for extra teachers. That money will be going away too.