School taxes may see increase to fund $197.13 million budget with 2.5% pay raises

The Fayette County Board of Education gave tentative approval Monday to the 2008-2009 budget that represents a 2.58 percent increase, or $4.97 million.

The budget includes $4 million in state-mandated teacher pay raises and large increases in fuel and food costs. The budget also assumes a 2.61 percent increase in the tax digest.

All this comes amid an economic slowdown that may likely result later this summer in a school tax millage rate increase of .754 mills unless conditions change.

Reviewing the tentative $197,132,660 budget, Comptroller Laura Brock said the $4.97 million increase over the current year comes with the required 2.5 percent teacher pay increase, or approximately $4 million, a $1.3 million state-imposed austerity cut, sharp increases in the cost of fuel and food, a reduction in all budget areas and no new initiatives or funding areas.

Brock said an example of the increases was in fuel costs, which were budgeted in 2007-2008 at approximately $700,000. Actual expenditures for fuel by the end of the budget year June 30 could hit $1 million, she said, adding that the upcoming budget has $1.2 million built in for fuel, a figure that might not be sufficient if prices at the pump continue to soar. The budget also includes a 2.5 percent pay increase for all school system employees.

Superintendent John DeCotis said the school system’s loss of 280 students, and the subsequent loss of funding due to the housing slump, was the first time such a loss of students had occurred since the 1960s. The school system customarily gains approximately 400 students per year, he said.

DeCotis also thanked Sen. Ronnie Chance and Rep. Matt Ramsey for helping get back $700,000 in state austerity cuts, adding that an additional $1.3 million in austerity cuts will likely remain.

DeCotis told board members at an earlier meeting that areas designated for cuts included the reduction of 34.5 positions by attrition, reducing overtime costs and the potential for reconfiguring bus routes. The repurposing of East Fayette Elementary will also amount to a $1 million savings, he said.

Cost-cutting measures relating to fuel consumption may result in giving schools an allotment for athletic trips. Academic trips will continue to pay their own way.

The 2008-2009 budget will be reviewed at the board’s June 16 meeting, with final approval expected June 23.

Next up this summer after the budget approval will be the millage rate, currently positioned at 18.596 mills. That rate may be set to increase if the board adopts the current tentative budget and if no other revenue sources emerge.

Possible revenue sources include the sale of school system-owned property, receiving wetland mitigation money for the Goza Road Complex, further personnel reductions or a positive change in the tax digest.

Without any increase in revenue the board would have to raise the rate by .754 mills to 19.35 to cover the $4.97 million increase included in the $197.133 million budget.