The Columbus Municipal School District Board of Trustees invited the public to a budget hearing Tuesday that allowed citizens to evaluate and ask questions about the district’s plan for fiscal year 2015-2016.
Newly hired business manager Tammie Holmes presented a budget to the board that showed projected revenues of $44,690,689 and expenditures of $44,373,645.
CMSD is projecting an enrollment of 4,377 students in the coming school year. It will have 540 employees and a 25:1 student to teacher ratio.
Revenues
The $44.7 million in projected revenue is up approximately $1.5 million from last year. This increase comes form state and federal sources. Holmes said the Mississippi Adequate Education Program has increased its allotment for CMSD by $760,000 when compared to last year. The increase in MAEP money largely goes toward paying for state required teacher raises. The district, Holmes said, remains underfunded by MAEP by $1.78 million.
Federal revenues are also increasing this year. CMSD will receive $10 million from the federal government. It got approximately $9 million last year.
CMSD is slated to take less money from local coffers this year. The district is budgeting for $12.7 million in local revenues — about $340,000 less than was budgeted last year.
Ninety-eight percent of local revenues will come from ad valorem taxes. The district is budgeting for $12.2 million from ad valorem taxes. Last year, the district budgeted for $12.5 million in ad valorem.
CMSD is requesting a total of 61 mills valued at $207,000. There will be no scheduled increase in local ad valorem taxes.
Expenditures
Holmes said the district is budgeting approximately $44.4 million in expenditures in FY 2015-2106. More than half of that — $22.7 million approximately — will go toward instructional services. About $15.6 million will go toward support services, which consist largely of administration and technology costs; $3.2 million will go to non-instructional services, mainly cafeteria associated costs; and $2.8 million is budgeted toward debt services.
For instructional services, Holmes said the district will pay $8.25 million to operate the elementary schools; $3.1 million to run Columbus Middle School; $4.8 million toward Columbus High School; $3.6 million to account for the 619 students in special education district-wide; $448,682 to run the state required gifted students program; $542,143 to pay for staff at Columbus Alternative School; and $1.5 million to operate the 10 courses offered at McKellar Technology Center.
Debt service debate
CMSD is budgeting $2.82 million for debt services in FY 2015-2016. This is $1.6 million less than what was budgeted in last year.
Board members Jason Spears and Glenn Lautzenhiser have said at previous meetings that money rolling off of debt payments originated from the bonds taken out to construct Columbus Middle School and that the leftover money needed to be returned to the taxpayer. Holmes said Tuesday the debt was in fact rolling off from shortfall loans the district had taken out.
“We’re not expected to pay off any of those bonds for the middle school or high school until at earliest, 2018,” Holmes said. “We’ve got approximately three more years to pay off those major bonds.”
Spears asked Holmes many questions about what he saw as discrepancies between the numbers Holmes presented in the budget and what the district actually has.
“You look at the 3-mill note,” Spears said. “We have allocated there $295,302. I’m looking as of June 30 numbers…levy amount for the 3-mill note for this school year is not $295,302, it is $479,689.50. So why is there a discrepancy when there is a credit balance in the account?”
“There is $489,000 in debt that’s due for the 3-mill note, that’s principal and interest,” Holmes said. “We already have $194,000 available, which equates to a difference in $294,302.”
Spears asked where the $194,00 came from. Holmes said fund balance.
“Fund balance,” Spears echoed. “Not money from the debt services account?”
“Well, debt service account could be the fund balance,” Holmes said.
Spears said his concern came from finding a credit in one of the fund balances, so there may not be money available the district believes there is. Holmes said there are other components to the fund.
Spears continued to question much of the budget and Holmes agreed to go back and review some of the issues Spears was concerned about and present her findings to the board next week before the budget is approved on Aug. 5.
Spears continued to press CMSD Superintendent Dr. Philip Hickman and Holmes about the budget. He questioned why certain positions were being filled and what the impact was on the budget.
“Our role is to hear the budget, our role is to deliberate on the budget and our role is to either vote for or vote against the budget,” Verdell said. “Our role is not to micromanage in terms of what positions are created and what functions they preform.”
“No, it has nothing to do with that,” Spears said. “Our role as a board is to be held accountable to the individuals who pay taxes here as well, that’s part of it.”
Verdell said however many positions there are requested and what functions they preform are not for the board to provide.
“The board, based off what has been presented here, is presenting a bunch of inaccurate numbers,” Spears.
“That’s not true,” Hickman said.
Verdell called the meeting back to order and had Spears finish his question.
“My question is why are we going to present and consider numbers that are not correct?” Spears asked.
Hickman said his staff did not appreciate being accused of improprieties and that many of Spears claims were taken out of context.
The board will meet to vote on the budget August 5.
You can help your community
Quality, in-depth journalism is essential to a healthy community. The Dispatch brings you the most complete reporting and insightful commentary in the Golden Triangle, but we need your help to continue our efforts. In the past week, our reporters have posted 41 articles to cdispatch.com. Please consider subscribing to our website for only $2.30 per week to help support local journalism and our community.