School board weighs quarter-mill tax shift

The Franklin County School Board is examining details this week of an option, newly created by the Florida legislature, that would enable it to shift a quarter-mill in property taxes from its capital outlay budget to cover operating expenditures.

The board was scheduled to meet at 4 p.m. on Tuesday, June 30 in a workshop to discuss the proposal, which would require at least a supermajority 4-1 vote by the board to be approved for one year. To be continued, it would be subject to voters' approval as a referendum on the ballot in Nov. 2010.

Faced with an expected decline of as much as a 30 percent in local property tax money, and a decline of about 6.6 percent in the base student allocation in state funding, the district is looking for a way to supplement its operating revenue.

If approved, the quarter-mill shift would add an estimated $638,586 to the general fund, which would help shore up the amount of money the district holds in reserve, which right now is below the state-mandated minimum.

In addition, it would ensure that no modifications need to be made in the district's plan to provide teachers and staff raises of 8 percent next year and 6 percent the following year.

These raises, part of an overall 24 percent hike between July 2008 and June 2011, were granted by the board following approval in June 2008 of a four-year half-mill tax levy, earmarked for salaries and benefits, by county voters.

At this week's workshop, school board members plan to review details of funding scenarios provided them by Sam Carnley, the district's director of financial services.

The scenarios incorporate a drop in the state's per pupil funding of about $255, or from $3,885 this year to $3,630 next year.

Even with no action by the board, the amount of property tax millage levied on county taxpayers will rise next year, because the Florida Legislature this spring decided to shift more of the funding burden to local taxpayers.

Carnley said last year's required local effort, which is the millage the state mandates local taxpayers must pay, stood at 1.48 mills, and raised about $5.14 million, with an additional local discretionary millage, at 0.532 mills, which raised another $1.7 million.

But next year, based on state funding rules, the required local effort will rise to 2.187 mills, and raise about $5.59 million, and the local discretionary millage will rise to 0.748 mills, and add another $1.91 million.

Together with other direct state funding, plus $388,000 in new federal fiscal stabilization money, the district will have a foundation of about $9.4 million in local, state and federal annual funding to work with, up from last year's $9.1 million.

Drop in half-mill levy receipts for salaries

Because of the decline in property values, the additional half-mill operating levy money earmarked for raises is expected to yield about $1.28 million next year, a good half-million dollars less than the $1.73 million it brought in this year.

Prior to approval by voters, initial estimates had been the four-year levy would yield at least $1.5 million to $1.8 million each year until it expires June 30, 2012.

While all of last year's half-mill salary money wasn't spent to fund the 10 percent pay hike granted in the first year of a three-year contract, declining property values will continue to yield less revenue in the next two years. This will make it less likely the district will be able to fund any yet-to-determined raise in the last year of the four-year span of the levy.

"It's not as much, so we can't give as much," said Chairman Jimmy Gander. "If it falls short, we can either renegotiate (with the union) or it's all over at the end of three years."

In addition, the district needs to bolster the district's fund reserve balance, which currently is only about $100,000, with the state requiring the district have at least a $1 million cushion.

Board Member David Hinton asked that Carnley present to the workshop numbers on whether the district can achieve its required fund balance without having to shift the quarter-mill out of capital outlay funds.

Cathy Wood, speaking on behalf of the teachers union, told the board that "the Legislature failed once again to provide needed resources" to Florida schools.

She urged the board to look to the quarter-mill option as "a source to replenish your reserves," adding that "25 cents will not be too much to ask taxpayers for education."