Tax hike not part of Franklin County School District proposal

The Franklin County School District’s budget proposal for Fiscal Year 2023 — that started Friday, July 1 — will not mandate the area’s public education system ask for more local tax dollars to support its operations.

During the Board of Education’s annual public hearing on revenues and expenses held on Tuesday, June 28, FCSD Business Manager Tremel Young clearly pointed out no increase in ad valorem taxes was planned.
“Our net request from the county will be $3,124,270 — the same as it was this fiscal year,” Young noted to open the meeting.

“This is the same amount that we sought previously plus we will also ask for the new property increase, which we won’t know a number for until after July 1.”

Young said she estimates the present value of a county mill stands at $64,061.30 with 48.77 mills in place to fund local schools.

In a graph prepared by Young and her staff, the school district — dating as far back as the 2014-2015 academic year — has sought various increases in county tax support for education with the new school budget cycle being the exception to that trend.

Here is a breakdown of those funding requests from the county by school year with a calculation of the hikes sought from each previous year:

• 2014-2015 — $2,757,819 ($99,441 increase).

• 2015-2016 — $2,770,849 ($13,030 increase).

• 2016-2017 — $2,782,703 ($11,854 increase).

• 2017-2018 — $2,791,103 ($8,400 increase).

• 2018-2019 — $2,816,531 ($25,428 increase).

• 2019-2020 — $2,828,711 ($12,180 increase).

• 2020-2021 — $2,955,835 ($113,148 increase).

• 2021-2022 — $3,124,270 ($168,435 increase).

• Proposed 2022-2023 — $3,124,270 (no increase).

In terms of overall revenue sources for FY 2023, Franklin County schools anticipate 28 percent — $3,077,300 — of their funds will come from local coffers while the state will contribute 59 percent — $6,586,022 — of the anticipated income to run the system.

Federal funds make up about 2 percent — $224,137 — of the district’s revenue stream while other sources contribute about 11 percent — $1,275,000 — toward the FCSD bottom line.

Revenue from all sources is projected to total $11,162,459.

Young pointed out the school system expects revenue, as a whole, to dip by $34,788, but noted local and state funding mechanisms were expected to climb by $2,609 and $680,698, respectively, in FY 2023.

The state’s increase comes after the Mississippi Legislature approved pay raises for teachers and assistants during its session earlier this year.

On the federal side, revenues are anticipated to be down by $3,095 while other funding sources will dip by an estimated. $715,000.

Young went on to note declines in FY 2023 funding were likely to include:

• Bank interest — $5,000.

• Homestead exemption — $2,589.

• Heavy trucks — $2,745.

• Master Teacher funding —$11,254.

• National Forest lands —$37,500.

• Transfer-in funds —$715,000.

Increased revenues are anticipated in three areas — ad valorem taxes ($2,589) based on typical valuation changes and decreases in homestead exemption; teacher pay raises ($575,988); and the Junior Reserve Officer Training Corps program ($2,555).

On the expenditure side, the district expects to spend $12,178,988 during the new fiscal year, according to Young.

Instruction will consume the lion’s share of district spending — $5,852,221 (50 percent) while operation and maintenance of buildings is budgeted at $1,266,846 (11 percent).

Instructional spending is set to rise by $442,150 compared to the previous budget year while physical plant and operational costs will go up by $98,211.

Transportation costs in the new budget plan have been estimated at $953,744, up $97,169 when compared with the current budget cycle.

Other planned expenditures for FY 2023 include:

• Fund transfers — $1,068,739 (up $106,800).

• School Administration — $994,176 (up $167,837).

• General Administration — $540,726 (up $56,251).

• Student Services — $388,618 (up $23,964).

• Business Services — $301,598 (up $13,014).

• Athletics — $244,647 (up $12,983).

• Technology — $108,561 (up $1,507).

• Instruction Staff Services — $226,406 (down $19,755).

• Debt service — $217,706 (down $6,476).

In focusing on expenses, Young told board members that slightly more than 74 percent of the school district’s spending is connected with salaries and benefits.

Total salary expenditures in FY 2023 are estimated at $6,667,217 (up $560,141 from the current fiscal year) while benefits are predicted to cost $2,382,410 (an increase of $198,778 when compared with the current budget cycle).

The district calculates its remaining expenses — $3,129,361 — will be spent on areas such as contractual services, repairs and utilities, insurance, travel, textbooks and supplies, equipment, fees and debt service and transfers.

With the new budget under consideration, Young noted the district was anticipating increases in costs related to attorney fees, utilities, liability insurance and transfers from special and vocational education.

At the end of her presentation, Young discussed the school district’s outstanding indebtedness in regards to its 16th Section principal loan balance.

She told the board the school system is diligently whittling away at its loans, which stood at $1,395,225 during the 2022 budget period.

She went on to say the district’s goal is to have that 16th Section principal debt paid down by 2039.