No Tax Increase In Early Version of Decatur School Budget

The good news: The early version of the Decatur schools budget does not include a tax millage increase.

The bad news: The administration is proposing a budget with a $3.8 million deficit, saying part of the cause is the rising cost of employee benefits.

Details about the budget emerged Monday afternoon when administrators briefed the school board on its proposals for the 2012-13 school year.

The administration is not suggesting a tax increase for 2012-13. If the school board goes along with the proposal, the millage rate will remain 20.90.

In July, it voted to increase the tax rate by one mill for the 2011-12 year, increasing by $100 the school taxes paid by the owner of a $200,000 home.

The biggest spending increase will be for employee benefits, which will rise more than $1 million over this fiscal year, finance director Greta Tinaglia said. She said most of that increase is beyond local control.

For non-certified employees, the state wants the system to sharply increase contributions, going from $3,552 per employee this fiscal year to $5,352 in 2013, $7,157 in 2014 and $8,952 in 2015.

The state wants school systems to make a flat rate contribution to certified employees, such as teachers, instead of a percentage contribution, she said.

Board members expressed alarm at the cost of benefits.

"That is scaring me half to death," Valarie Wilson said.

She and Superintendent Dr. Phyllis Edwards urged PTAs and other parent groups to lobby legislators and find some relief for local school systems.

"Somewhere a parent movement needs to get started," Wilson said.

The reserve fund balance is falling, from $10.1 million at the end of fiscal year 2011 to an expected $5.8 million at the end of 2012. At the end of the 2013 school year, the system expects the balance to hit $2 million.

Edwards pointed out that state law requires school districts to limit fund balances to no more than 15 percent of general operating expenditures.

After the meeting, Edwards said the Decatur school system has avoided laying off any teachers and has been able to maintain quality in the classroom, partly by dipping into the reserve fund to balance the budget.

She said the system would never actually deplete the fund because changes could be made during the year.

"You would make adjustments when you see things are not going well," she said.

Tinaglia and a budget committee of citizens recommended the school board consider creating a contingency fund that would be separate from the reserve fund.

Garrett Goebel, who will be sworn into office as a board member tonight, said during the meeting, "I find the rapid decline of the fund balance worrying."

Some figures and projections in the document may change over the next few months, Tinaglia cautioned.

Said Edwards: "You saw some major assumptions. We don't know how it will pan out."

The board is scheduled to pass the budget in June. A power point of the proposed budget can be found on the school system website.

The school board holds another work session at 4:30 p.m. today in the central office on Scott Boulevard and holds its monthly meeting at 6:30 p.m. today.