A projected loss in Mississippi Adequate Education Program (MAEP) funding may force Columbus Municipal School District to look at “drastic” cuts for the next fiscal year, according to district business manager Tammie Holmes.
Holmes gave a report on MAEP funding for the current fiscal year, Fiscal Year 2017, during Monday’s CMSD board meeting.
A .38-percent cut in MAEP funding for districts across the state, ordered by Gov. Phil Bryant, will cost CMSD $72,082 this year. Holmes said the cut reduces CMSD’s MAEP allocation for the fiscal year from $18.85 million to $18.77 million.
Holmes added CMSD is anticipating a roughly $140,000 deferment this fiscal year in MAEP funds for students who attend the Golden Triangle Early College High School.
Next year, she said, the state funding situation could be more severe.
“The full allocation for Columbus would have been $19.6 million,” Holmes said. “However, we’re only receiving $17,912,000. That’s more than $1.7 million that we’re being underfunded by MAEP this upcoming school year.”
The $17.9 million MAEP starting allocation for Fiscal Year 2018 is less than FY 2017’s $18.7 million. Holmes said CMSD is estimating another $79,109 in state cuts, along with an estimated $210,000 deferment for GTECHS students.
That amounts to an estimated $17.62 million in MAEP funding — a projected loss of $789,643 in state revenue for the district.
“Of course, we know that MAEP is one of the major funding sources for the district to operate,” Holmes said. “So we know, going into FY 18, we’re going to have to make some more drastic budget cuts, in addition to the ones that we made last year. I just wanted to make the board aware that those cuts are coming down the pipeline and we will need to budget accordingly.”
CMSD Superintendent Philip Hickman, in response to a question from Board President Jason Spears, said it’s not yet clear where CMSD will cut costs to make up for the projected loss of MAEP revenue.
“Right now we’re just looking over everything — we don’t know,” Hickman said. “I’m asking everyone to turn in what programs we have, what open positions that people have vacated and we were able to survive this year, in the sense of which ones are priorities that we can allow the principals. We haven’t told the principals to hire anyone yet in those open teacher spots.
“Obviously the larger cost would be — I think we were talking 20 positions in a sense,” Hickman continued. “I’m not saying that we’re cutting 20 positions, but 20 positions will make up that loss. So now we’re looking at people, programs and the combination.”
Estimated debt for FY 18
Later in the meeting, Holmes said CMSD will need an estimated $2.76 million for debt service in FY 18. She said that could lead to an almost $2 million increase in the district’s debt funding request to the city of Columbus during the summer budget process.
The request could set up another showdown between district and city officials. Last year, fears an increase in required funding for the district might lead to significant tax increase drew the ire of Mayor Robert Smith and the city council.
CMSD drew from its fund reserves last year to avoid a tax increase, though Hickman warned at the time the district couldn’t do that year after year. Holmes, at Monday’s meeting, said the district has been advised not to repeat last year’s withdrawal.
“The district did withdraw $1.2 million out of the fund balance to meet recurring debt costs for this year,” Holmes said. “However, for FY 18, our bond attorney has not advised us to proceed again with making money withdrawals out of the fund balance for debt.”
Alex Holloway was formerly a reporter with The Dispatch.
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