LIBERTY — The projected deficit for the Amite County School District’s 2010-11 fiscal budget has grown to $800,000, and officials plan to remedy the situation with a tax hike and timber cuts, the board of education learned Thursday.
School district business manager Sherie Jones delivered the updated deficit at a budget work session Thursday afternoon.
That news was tempered about an hour later at the board’s regular monthly meeting, when county forester Travis Stewart projected the school district’s timber revenue at $868,789 for the 2010-11 fiscal year. Jones said the majority of the revenue will go to shore up the budget.
Jones told the board last week that preliminary estimates indicated that the district faced a $400,000 to $500,000 budget shortfall despite budget cuts from laying off 11 teachers, closing Gloster Elementary School and a projected 4 percent millage increase in the school district’s property taxes.
She said Thursday that a further examination of the board’s projected revenues and expenses indicated the larger shortfall.
Superintendent of Education Debbie Hopf said the drop in the revenue is a combination of cuts in Mississippi Adequate Education Program funds and other state education funds, such as money for teachers’ supplies.
Another cut, Hopf said, is in the ad valorem reduction fund, a state fund that helps school districts recover some property tax revenue lost through homestead exemption. “We usually get about $110,000 a year,” she said. “This year, we’re going to get about $20,000.”
Hopf said she, Jones and board member James Copeland discussed the school district’s financial situation and the proposed millage increase with Amite County Supervisor Jackie Whittington, Chancery Clerk Ronny Taylor and board of supervisors attorney Reggie Jones.
The millage hike would raise the school district’s tax rate from 28.62 mills to about 30 mills.
Jones said she is not yet sure how much more revenue the increase will generate, adding that she is waiting to hear from Taylor about how much revenue a mill will generate.
The current 28.62-mill tax was expected to raise about $2.51 million in fiscal 2010-11.
Hopf called the meeting with county officials positive.
“They were very understanding of our situation,” she said. “We shared everything we had with them.”
Jones said she still does not have a firm budget, adding that she and Hopf are continuing to look for possible cuts.
“We are looking at everything,” Jones said. “We have made cuts in just about every budget item, and we are still looking. We will have a balanced budget, but it will be cut to the bone.”
Timber revenue brings hope
Stewart said the projected $868,789 in timber revenue is based on an estimated $819,713 in revenue from timber cuts in 2011 plus a carryover of $49,076 in timber revenue from 2010.
Jones said 15 percent of the revenue — about $130,318 — will go to the school district’s 16th Section land principal account.
The remaining 85 percent — about $738,424 — will go to the 16th Section land interest account, and then moved to the school district’s general fund to help cut the projected $800,000 shortfall.
Sixteenth Section land interest funds can be used for school district operation and maintenance, but their primary use is for maintenance and capital improvements.
Previous Amite County school boards have used 16th Section funds to operate the school system.
The current board initially planned to use 16th Section interest funds to repair and replace buildings.
But state budget cuts coupled with the repair and renovation of Liberty Elementary forced the board to use 16th Section money for the budget.
“All you have to do is tell people to look at our buildings and see what happens when you use 16th Section money to pay bills instead of fixing buildings,” Copeland said.
