9/2/2009 6:02:00 PM Schools say tax hikes due to state cuts
By LEAH TOLBERT Staff Reporter
Anticipating further cuts in state education funding and local shortfalls, the city and county schools have proposed tax increases.
Under state law, city and county schools can request an annual increase of up 4 percent.
Both the city of Philadelphia and Neshoba County are in the process of formulating budgets for 2010 and will either have to absorb the increases the schools are requesting or raise taxes.
A hearing to gain public input on Neshoba County's budget is set for Sept. 14 in the Board of Supervisors room in the courthouse.
The Mayor and Board of Aldermen were to have heard public comments on the city budget Tuesday night.
Like others, the Neshoba County and Philadelphia public school districts saw their budgets cut by more than 3 percent at the state level.
Additional cuts this fiscal year are also anticipated as state revenues continue to decline, superintendents said.
Philadelphia Public Schools asked the city for $160,585 in additional monies this year, while Neshoba County Public Schools is seeking an additional $190,038 from the county.
A person who owns a $100,000 house in the city school district would pay an additional $20 in school taxes, while a person with a $100,000 house in the county school district would pay about $36 more in school taxes.
The county school district's budget for the FY 2009 was $24,404,384 with $2,657,989 or 11 percent of revenue obtained through local ad valorem taxes.
The budget for the FY 2010 is $25,575,688 with 11 percent or $2,848,027 coming from ad valorem taxes.
The Board of Supervisors would have to raise its millage rate for the schools from 30.32 to 33.96 to fund the increase, school officials said.
The city school's FY 2009 budget was at $10,564,093 with $1,951,173 or 18 percent collected through ad valorem tax.
The budget for FY 2010 is $11,011,384, with 19 percent or $2,111,758 coming from local taxes.
The Board of Aldermen would have to raise its millage rate for schools from 45 to 50 to fund the increase, school officials said.
The county schools were cut about $151,187 in state funding during FY 2009, and the state is probably going to cut funding even more in January or February, said Francis Page, business manager.
Because of the cut from the previous year, Page said the Neshoba County Schools needed to request the maximum amount of funding from the Board of Supervisors in order to maintain the school district and keep it functioning properly.
This is the first increase the school has requested in five years, she said.
County Superintendent George Shaw said statewide budget cuts hit his school district hard while seeing a shortfall from the county as well.
"Collections from the county's ad valorem taxes for the schools this past year could result in a shortfall of up to $83,000 because people weren't buying such things as new car tags," he said. "We are not asking the county to make that up."
Shaw said his district was taking all the necessary steps to save on such things as utilities but pointed out that providing the necessary educational tools for the students would remain a top priority.
"We are also trying to bring the district's technology up to the 21st century," he said. "Our first priority is to the children, and we cannot cut them."
Philadelphia Public Schools also expects to see funds from the state decrease this fiscal year and therefore is asking the city for every penny it can legally do, said Sandra Martin, business manager.
Superintendent of Education Joseph White agreed.
"As of now, we know there will be a minimum 5 percent cut by the state, since that is what the state is projecting for the next year," White said.
The cost of living has not only increased for households but for school districts as well, he said.
In order to keep the school running fast and efficient, additional personnel, utilities and other expenses along the way need to be paid, White said.
County schools are trying to maintain the cost of running a school without burdening the taxpayers too much, Page said.
While by law the county school district is allowed up to 55 mills of ad valorem tax, it has been operating on 30.32 mills in past years.
At the moment, the Philadelphia Public School District does not know if the additional funding will be used entirely during FY 2010, but they are not taking any chances.
By June 2010, Martin is certain the funds will be used for improvements to the school if there is any leftover, which she said is doubtful.
"If we have extra, we do not plan to bank that money," said Martin. "We will sit down with a plan to use it towards the school. We could use a new roof."
An increase in ad valorem tax could mean that citizens in the area will pay more in ad valorem taxes on houses, automobile tags, utilities, business fixtures and equipment and rental real property.
