McComb school trustees on Tuesday approved a $28.3 million budget for the 2013-14 school year, much the same as the current operating budget for the city school district.
Of the new revenues, nearly 26 percent, or $7.3 million, is expected to come from local ad valorem taxes, which are capped at 62.75 mills.
The board will submit its budget to the City of McComb. The district cannot ask for millage rates; it can only ask for the money needed to run the schools. The city then sets the millage to cover the amount needed.
But, while the district is capped in millage, District finance officer Cathy Jones, said assessed property values are up a bit, meaning property owners are likely to see an increase in taxes.
For the new budget year, state sources are expected to bring in just over $12 million, or 43 percent of the operating budget, primarily through the Mississippi Adequate Education Program. Federal sources are expected to bring in $5.2 million, or 18 percent.
Jones in a public hearing held last week, said the state Legislature again failed to fully fund the MAEP program, and in so doing, passed the burden to the local level.
“If it had been fully funded, we would be able to lower our ad valorem tax (needs),” Jones said.
Jones reminded trustees that the biggest cut in state funding came in 2008, and since that time, the school system has seen more than $5 million in state cuts.
The new budget, Jones said, covers all the district’s needs, “but not all the wants,” and she encouraged board members and those in the audience to appeal to the Legislature to fully fund the MAEP.
Superintendent Therese Palmertree said at the hearing that the district has aggressively pursued grants and foundation funds to shore up the district’s financial picture.
“That’s where we’ve been able to build upon. It’s been huge because in 2008, it was baptism by fire,” she said of leading the school district in dire financial times.
“We went from green and lush, to starvation, but the district was in good shape,” Palmertree said. “We’ve been able to continue to provide an extraordinary education for students.”
Expenses in the new budget include nearly $13 million, or some 45 percent, for salaries and instructional services. Just over $9 million, or 32 percent, will go to support services, primarily administrative costs. Other expenses are $2.2 million for noninstructional services, $3.2 million for other financing uses, $124,300 for 16th Section uses and $968,000 for debt service.
Costs for benefits for employees continue to rise — just over $5 million this year, including $4,400 spent per employee for insurance.
The budget includes raises for bus drivers and for the lowest paid employees, who will see a 50-cent per hour pay boost.
