The Jackson County School System’s budget will drop by three percent next fiscal year, as revenue figures remain uncertain.
The board of education on Monday adopted a tentative $84 million general fund budget for the 2013 fiscal year, which starts on July 1. Its current fiscal year budget was approved for $86.8 million.
The budget doesn’t call for any changes to its property tax millage rate, which stands at 18.90 mills. It does, however, call for six furlough days — also called calendar reduction days — for teachers and paraprofessionals and four furlough days for employees who only work when students are in school, such as bus drivers.
This past weekend, the school system received its final word on what the state’s allotment to the district will total, according to Jamie Hitzges, assistant superintendent for finance and information services.
What remains unknown is what the local contribution will total for the Jackson County School System.
“We feel pretty comfortable with revenue — we just don’t have the local piece,” Hitzges told the board of education on Monday.
The tentative budget approved by the school board estimates that property taxes will total $30 million — an increase from $29.9 million last fiscal year. Hitzges explained that jump is likely to come from a re-assessment of commercial properties in Jackson County, which are expected to increase slightly in value.
The Jackson County Tax Commissioner’s Office hasn’t presented a final tax digest yet, but once that happens, the school system is slated to adopt a finalized budget.
It’s still unknown if the district will need a short-term loan — called a Tax Anticipation Note — to get the school system through the end of the calendar year until revenue from property taxes begins to arrive in December. The school system has used TANs in recent years to bridge the gap between when it adopts a budget and local tax revenue arrives, although it used little money of that loan last year.
The budget approved on Monday calls for $6.1 million in surplus funds when the fiscal year ends on June 30, 2013. That’s about the same amount expected when the current fiscal year ends.
As for expenses, the school system’s instructional costs will dip by $891,330 — from $41.2 million to $40.3 million. The drop includes furlough days for employees.
The district must also pay more for its share of healthcare costs for some employees, such as bus drivers and cafeteria staff. That expense — along with other insurance increases — is spread across several expenditure items in the budget, according to Hitzges.
Overall, while revenue is up by an estimated $493,800, the district has trimmed more than $2.8 million in expenses in comparison to its current budget.
