The Wichita Falls Independent School District owes the state $1.2 million for the 2011/2012 school year.
Interim CFO Laura Lee Brock says the money will be paid back using the district's Fund Balance, so students and teachers will not be impacted by the deficit.
"At this point there have been no marked reductions in any of the programs," said Brock. "Teachers should be able to start school as usual next Monday, students will show up to class next Monday and they should not see any effect on us."
Brock said administrators failed to track the number of students enrolled in district schools throughout the year. Therefore, this number was not updated from the original estimate given to the state, meaning the district received money each month for more students than were actually attending schools in the district.
There is currently over $14 million in the Fund Balance, so the $1.2 million pay back to the state is manageable.
"The state every year over pays, under pays, and it's a constant ebb and flow of our revenues that go back and forth between us and the state, so it's not a perfect science and there's always estimations involved," said Brock.
She adds that the overestimation this year is higher than the $500,000-600,000 the district anticipates each year.
The district noticed the problem in June of this year, but waited for more information to tell the public.
"We had an idea of the overestimation but we did not know exactly the impact that was going to have until the year-end calculations and reconciliations were being done," said Brock.