Starkville-Oktibbeha Consolidated School District administrators presented a proposed budget of about $64.5 million in expenditures for Fiscal Year 2020-2021 at the school board’s meeting Tuesday night, about $2.5 million more than expected revenues.
While the state Legislature has not yet passed an education budget approved by the governor, SOCSD Chief Financial Officer Tammie McGarr presented what she called a “conservative estimate” of $61,972,004 in revenues, almost $30 million of which will come from local sources and another $25 million of which she projects to come from the state.
“That ($2.5 million difference) would be taken out of our reserves,” SOCSD Superintendent Eddie Peasant said.
McGarr specified the $2.5 million will come out of funds reserved from previous years in the district’s construction, debt service and other budgets. In its reserve fund at the end of last fiscal year, the district had a little over $12 million in reserves.
McGarr had previously told the school board the district might see a funding cut from the state as a result of the COVID-19 pandemic and that state legislators had warned school districts they may have to dip into reserve funds for the upcoming school year.
In the proposed budget she presented Tuesday, McGarr projected the district will receive $22,879,257 in Mississippi Adequate Education Program funds, about a 2-percent decrease from last year’s allocation of $23,346,181.
However, she said the district does not expect to need a tax increase to help cover the shortfall. While the district will request $27,875,294 in operational ad valorem taxes — about a $1.2 million increase from last year — the increase will come from new properties paying taxes.
“We are not asking for any increase in taxes,” she said. “…We do have an increase (in the ad valorem revenue), but it’s all due to the new property that’s been added to the tax rolls.”
McGarr told The Dispatch Wednesday the board should vote on the budget at its Aug. 11 meeting.
“If nothing changes, it will be approved that night, and then when we get our final allocation from the state, we will have to amend that budget and take that amended budget back to the board for approval,” she said.
The Legislature is currently not in session, and Rep. Rob Roberson (R-Starkville), who sits on the education committee, says he doesn’t know when the Legislature will be called back to pass the budget for schools. Earlier this month, Gov. Tate Reeves vetoed the first such budget legislators passed because it would have changed a teacher bonus pay plan.
“There’s a possibility I would think over the next two or three weeks that we would have special session, but I haven’t been told when exactly to lock those times down yet,” Roberson said.
Still, he said he does not expect the education budget to have changed significantly since last year, despite the pandemic.
Expenditures
The upcoming school year’s total expenditures are projected at $64,435,688, according to McGarr’s presentation. That includes the district’s operating budget as well as debt service and facilities acquisition and construction.
Salaries and fringe benefits are expected to be $39,283,407. Operation and maintenance is budgeted for $4,764,060. Transportation is budgeted at $3,127,895, and technology is budgeted at $1,040,616.
Board member Sumner Davis said overall the district appeared to be in good financial shape, despite the pandemic and delay in MAEP funds.
“Long story short, we’re in a really good budget condition considering all of the varying factors swirling around our situation,” he said. “Is that a fair statement?”
Peasant said he would agree “wholeheartedly.”
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