South Pike School District business manager DeLorean Hall recommended to trustees a 2014-15 budget that features a 7 percent tax increase — the most allowed by law — and a $1.2 million shortfall.
In a 10-minute budget hearing Thursday with no public attendance, Hall said projected revenue for the school year is $17.2 million. Of that, $4.5 million is expected from local sources — namely property taxes; $8.6 million from the state and $3.9 million in federal funds.
But, projected expenses are estimated at $18.4 million. Of that, $8.9 million will be spent on instructional services, which include teachers’ salaries; $7.7 million in support services; and $1.2 million in non-instructional services.
“The recommendation is that the district request the 7 percent tax increase to ensure that some of the recurring expenses are covered with recurring revenues,” Hall said.
One reason for the shortfall, Hall said, is the state-mandated teacher pay raises, which will cost the district some $249,885 without health or life insurance costs. Starting this month, teachers received a $1,500 pay raise, and they’ll get an additional $1,000 at the beginning of the next budget year.
Though the district is receiving $8.2 million from Mississippi Adequate Education Program funding, projected salary costs for the year exceed that number at $9.3 millionm with the raises included for the district’s 135 teachers.
The district’s current millage rate is 57.71 mills.
Neither school district officials nor county administrator Andrew Alford would project what a 7 percent increase would translate into in terms of millage rates.
Last year the district raised millage by 4 percent, and that amounted to a 2.66-mill tax increase, bringing the millage rate from 55.05 to 57.71 mills.
By comparison, McComb’s millage rate — capped under state law — is 62.75, and North Pike’s is 41.6.
South Pike’s millage has increased almost every year since the 2006-07 school year after a sharp drop the year before.
Hall did not mention an end fund balance during the quick meeting and did not address how the $1.2 million shortfall would be covered. After her presentation, the board quickly recessed without questions beyond one.
Board president Dr. Luke Lampton asked Hall what her opinion was on the state of the district’s financials.
“We’re in an OK place, and we’re being real conservative with the funds so we won’t spend too much,” Hall said.
