Higher taxes are on the minds of the Fayette County Board of Education. Three of the five members voted Aug. 4 to put a 1-percent sales tax hike on the ballot in November. Next week, on Aug. 11, they are scheduled to set the ad valorem property tax millage rates. Both items will bring tax increases for Fayette taxpayers.

The $197.1 million General Fund budget adopted recently for 2008-2009 was based on 19.35 mills, a .754 mill increase from the current 18.596 mills. The increase will amount to an additional $3.466 million in tax revenues to fund the recently adopted budget.

As for the debt service millage rate on school bonds, board members are expected to raise the rate from 3.55 mills to 4.17 mills, a difference of $2.899 million, or .6 mills.

Comptroller Laura Brock several weeks ago explained that the bond amortization schedule for 2008-2009 calls for payments totaling $20.71 million. If left at the current rate of 3.55 mills the resulting revenue would bring in $17.31 million, leaving a revenue shortfall of $2.899 million. That amount, she said, could be made up by increasing the bond millage by .6 mills.

A discussion at the Aug. 4 meeting included comments from Brock stating that ad valorem taxes account for 50.22 percent of revenues while state QBE (Quality Based Education) dollars make up 48 percent of General Fund revenues.

Superintendent John DeCotis also noted Gov. Sonny Perdue’s recent comment that state government departments might expect a 2-percent cut across the board, adding that some of the state’s smaller school districts are currently suing the state over continuing austerity cuts. Those cuts in the past few years have totaled $21 million in revenue reductions to Fayette County schools, DeCotis said.

Board member Bob Todd questioned whether impending state cuts might be a reason to consider raising the M&O millage higher than the 19.35 mills already advertised. DeCotis said that if such a move were decided on, the board would need to re-advertise the new rate and set three new public hearings.

Board members will meet at 8:30 a.m. on Aug. 11 to hold the final public hearing and set the millage rates unless an alternative decision is forthcoming.