• School budget results in tax increase

• Local property taxes account for over 50 percent of budget, first time that has happened

The unanimous vote Monday night by the Fayette County School Board to adopt the $197,132,660 budget for 2008-2009 was almost anti-climactic since no changes were made to the cuts announced at previous budget work sessions.

Cuts aside, adoption of the budget will result in a .754 mill increase in August unless last minute revenue sources unexpectedly appear.

The $197.1 million budget represents an increase of $4.97 million over last year despite the elimination through attrition of 38 staff positions, no step increases for non-instructional staff, reductions in all budget areas, reductions in overtime and no new initiatives, said Superintendent John DeCotis.

The new budget also includes a required 2.5 percent pay increase for teachers and a 2.5 percent cost of living adjustment for all remaining school system employees.

Teachers will receive a step increase for longevity, though the school board said it would hold off on similar increases for other staff again this year.

In all, the adopted budget represents an increase of 2.58 percent compared to an increase of nearly 9 percent last year, said Chairman Terri Smith.

Also playing into budget calculations were skyrocketing fuel and food costs, state-imposed austerity cuts of $1.3 million and a reduction in state funding from the system’s loss of 280 students.

The reduction in student population is the first time that has occurred in Fayette County since the 1960s, DeCotis said.

Some budget areas were protected from cuts this year, including classroom instruction positions, locally funded positions that exceed state requirements and the adoption of new science textbooks.

On the revenue side, ad valorem taxes will account for 50.22 percent of revenues, the first time local tax dollars have crossed the 50 percent threshold, said Comptroller Laura Brock.

State Quality Based Education (QBE) funding will account for 48.14 percent of revenues, while other local and state funds will make up the remaining 1.64 percent of revenues.

Brock said the top areas of spending included instruction costs at 71 percent, maintenance and operation at 7.83 percent, school administration at 6.7 percent and transportation at 4.4 percent.

Viewing expenditures from a different perspective, Brock said salaries represent 67 percent of expenses, with benefits accounting for 21 percent and energy at 2.65 percent.

Ongoing concerns discussed by board members included the volatile fuel market, the expense of keeping up with the bus replacement and computer maintenance schedules and a potential 4 percent reduction in QBE funding in early 2009.

Board members held out hope that a slumping housing market would be offset by a positive tax digest along with the sale of available school system property.

A hearing for what will likely be a .754 mill increase will be July 28 at 6:45 p.m.

Two other required hearings will be Aug. 4 at 8:30 a.m. and again at 7 p.m. when the millage rate will be set.

The current millage rate is 18.596, expected to increase to 19.35.