The DeKalb County Board of education’s proposed budget for the 2011-12 fiscal year is still up in the air as the Review goes to press.
The initial proposal, which included a seventeen cent tax increase, has been whittled down to a configuration that was thought to involve a tax increase of 6.5 cents, but upon further examination, school board officials say that a line item was left out of Monday night’s budget discussion, and officials suspect that the final rate will be slightly higher.
Members of the school board and Director of Schools Mark Willoughby met Thursday night with Mayor Mike Foster and the county budget committee to discuss the proposed school budget for the 2011-12 fiscal year.
The budget put forth by the board includes the hiring of new positions within the system, pay raises for existing personnel, and would require a seventeen cent increase in the county property tax rate.
The budget committee has rejected the board’s proposal in regard to approving money for new employees in the system.
The commissioners did voice approval of the proposition of a pay raise for school system personnel, however.
Foster and county financial advisor Steve Bates both informed the school board members present Thursday evening that in its proposed state that the budget was unsustainable over the next few years, and at a time when most other county offices are experiencing up to 20 percent budget cuts, the school board’s requests could not all be granted.
Willoughby again stated his position at the meeting, and renewed requests for new personnel, along with the tax increase, based on school needs.
Stressing that the budget requests were financially unsustainable, Foster asked the school board to work on and revise its proposed budget, and to make cuts wherever possible.
The current DeKalb county property tax rate is $1.46 per $100 of assessed value.
The new certified tax rate, which the state established after reappraisal, is expected to be $1.52.
An increase in property tax is likely to be enacted in the final county budget, no matter the outcome.
Bates told the budget committee Thursday night that a five cent tax hike would be required just to fund the school system's pay raises, and that the county general fund will need more revenue to function properly.
No final decision has been reached, but based on the budget committee’s  discussions so far, the new tax rate is likely to be as much  as $1.60.
In renewing the request for funds Thursday night, Willoughby and members of the school board gave their reasons for asking for new employees, which they say are necessary  to meet the needs of students, and downplayed the effect of the proposed seventeen cent tax increase.
Willoughby said the money that would come from most taxpayers pockets would be less each day than the cost of a soda pop each day.
"For each penny that the tax is raised on a $100,000 piece of property, that person's tax goes up $2.50 per penny,” Willoughby said. “For $150,000, it goes up $3.75 per penny, on $200,000 it increases $5.00 per penny. So on a $100,000 piece of property, that's 12 cents a day. On a $150,000 piece of property, its 17 cents per day. If we were asking for a 17 cent property tax increase, even for a person who owned a $300,000 piece of property, that's 34 cents per day. That's not what people spend on a Coca Cola per day. I think a majority of people, owning a $100,000 piece of property, could find 12 cents a day.
"I'm glad that we have a low property tax in DeKalb County,” he added, “but I think the people would be proud to see how we're using our property tax for the kids. We look at what's needed for our children."
Bates opined, however, that if the school board continues to perpetuate the system while projecting using BEP reserve money to balance its budget in the years to come, a substantially higher tax rate will be needed to sustain the system in the near future.
"What are you going to do when you get ready to build a school and you've already used the money?” Bates inquired.
“Look at your state retirement. That is the 800 pound gorilla in the room. Next year, you're going to see your state retirement contribution go way up. It’s going to be that way statewide. The problem you have is that your budget is $2.1 million more than last year. You received federal stimulus money in 2010 and your budget went up $717,000 versus 2009, so the path you're on is unsustainable even at the seventeen cents you're asking for, because you're going into cash by $1,336,000.
“Even if the county gives you four extra pennies, you'll need another thirty one cents on top of that,” Bates continued, “and then you've got these things you'll have to address next year like state retirement and health care at the federal level. They (federal authorities) have already said we're going to have to start funding everybody. Once you start taking that long view, what are you going to do? Where are we going? How are we going to get there?” Bates asked.
Foster added that once the federal $666,893 Education Jobs Grant Fund is gone next year, any new positions added to the school system with this money may not be fundable next year, and he does not wish to hire several people only to let them go next year because of lacking funds.
"This jobs money is one-time monies to hire all these new people and next year there's no money," Foster said.
Foster shared Bates' concerns about the coming years as well, and took a different view of Willoughby’s soft drink argument.
"If you add the 17 cents, plus the $666,000 (from federal funding) and the $1.3 million (the fund balance) that would be an increase, based on property taxes, of 46 percent,” Foster said, “That's unsustainable.”
In Willoughby’s  explanation of why the system needs the new employees, he told the committee that increases in enrollment in some grades and new federal standards require an increase in staff.
"A new fifth grade position is needed at Northside Elementary School because of the numbers,” Willoughby said. “We've had an increase in the enrollment there and that is why we need that position.”
“The Physical Education position is needed in order to give teachers enough planning time, so they can have a planning time every day," he said.
"We also need an additional math teacher at the high school. We talked about that two or three years ago with the American Diploma Project, Tennessee Diploma Project, where all the students were going to be required to have four math classes where they had previously been required to have three math classes. Its gotten to the place now where we need to add that math teacher," Willoughby added.
Willoughby stressed the need for the creation of an assistant band teacher position and an assistant soccer coach at the high school as well.
"We have a real good band program now and the numbers of children taking band are going up,” he said, “but our students at the West School and Middle School do not have the opportunity to be part of the band like they should, especially at the West School.
“In order to grow a good high school band program, you need the feeder schools in there and that's the reason we have this position in there," Willoughby said.
As for the soccer program, Willoughby said, "That's something that comes up year in and year out. We're asking for one assistant soccer coach for the boys and one for the girls."
Willoughby also said that a site coordinator position should be added at DCHS to meet the need for online classes.
" We, like many other schools, are going to distant learning, on-line classes,” he said. “That person would not have to be certified. He or she would keep everything going as far as online, doing communication with other schools, whether it be another high school program, Motlow or other places. That person would also keep in contact with parents," Willoughby added.
"The other person we need is a special education teacher at the high school in order to meet the needs, under the special ed federal program,” Willoughby continued. “We have $45,000 as a budget item there for that," he said.
Willoughby also said that the three teaching positions and one educational assistant spot, which were paid for with federal stimulus funds for the last two years will kids. We look at what's needed for our children."
Bates opined, however, that if the school board continues to perpetuate the system while projecting using BEP reserve money to balance its budget in the years to come, a substantially higher tax rate will be needed to sustain the system in the near future.
"What are you going to do when you get ready to build a school and you've already used the money?” Bates inquired.
“Look at your state retirement. That is the 800 pound gorilla in the room. Next year, you're going to see your state retirement contribution go way up. It’s going to be that way statewide. The problem you have is that your budget is $2.1 million more than last year. You received federal stimulus money in 2010 and your budget went up $717,000 versus 2009, so the path you're on is unsustainable even at the seventeen cents you're asking for, because you're going into cash by $1,336,000.
“Even if the county gives you four extra pennies, you'll need another thirty one cents on top of that,” Bates continued, “and then you've got these things you'll have to address next year like state retirement and health care at the federal level. They (federal authorities) have already said we're going to have to start funding everybody. Once you start taking that long view, what are you going to do? Where are we going? How are we going to get there?” Bates asked.
Foster added that once the federal $666,893 Education Jobs Grant Fund is gone next year, any new positions added to the school system with this money may not be fundable next year, and he does not wish to hire several people only to let them go next year because of lacking funds.
"This jobs money is one-time monies to hire all these new people and next year there's no money," Foster said.
Foster shared Bates' concerns about the coming years as well, and took a different view of Willoughby’s soft drink argument.
"If you add the 17 cents, plus the $666,000 (from federal funding) and the $1.3 million (the fund balance) that would be an increase, based on property taxes, of 46 percent,” Foster said, “That's unsustainable.”
In Willoughby’s  explanation of why the system needs the new employees, he told the committee that increases in enrollment in some grades and new federal standards require an increase in staff.
"A new fifth grade position is needed at Northside Elementary School because of the numbers,” Willoughby said. “We've had an increase in the enrollment there and that is why we need that position.”
“The Physical Education position is needed in order to give teachers enough planning time, so they can have a planning time every day," he said.
"We also need an additional math teacher at the high school. We talked about that two or three years ago with the American Diploma Project, Tennessee Diploma Project, where all the students were going to be required to have four math classes where they had previously been required to have three math classes. Its gotten to the place now where we need to add that math teacher," Willoughby added.
Willoughby stressed the need for the creation of an assistant band teacher position and an assistant soccer coach at the high school as well.
"We have a real good band program now and the numbers of children taking band are going up,” he said, “but our students at the West School and Middle School do not have the opportunity to be part of the band like they should, especially at the West School.
“In order to grow a good high school band program, you need the feeder schools in there and that's the reason we have this position in there," Willoughby said.
As for the soccer program, Willoughby said, "That's something that comes up year in and year out. We're asking for one assistant soccer coach for the boys and one for the girls."
Willoughby also said that a site coordinator position should be added at DCHS to meet the need for online classes.
" We, like many other schools, are going to distant learning, on-line classes,” he said. “That person would not have to be certified. He or she would keep everything going as far as online, doing communication with other schools, whether it be another high school program, Motlow or other places. That person would also keep in contact with parents," Willoughby added.
"The other person we need is a special education teacher at the high school in order to meet the needs, under the special ed federal program,” Willoughby continued. “We have $45,000 as a budget item there for that," he said.
Willoughby also said that the three teaching positions and one educational assistant spot, which were paid for with federal stimulus funds for the last two years will  have to be added back into the general fund now that those federal funds have been depleted.
"These positions are returning to GP (general purpose) due to ending of stimulus funding. We used that money for that amount of time to relieve the general purpose budget, to save the county money," he said.
Foster informed the committee that he has learned that the state may cover the costs of those positions previously funded by federal stimulus dollars.
"The state used over $170-million in federal ARRA money last year to help fund the BEP formula for K-12,” Foster said.
“After two years of availability, those funds went away. The state budget this year will replace those dollars and include additional funds to cover student enrollment growth and inflationary factors built into the BEP formula. So hopefully, there is money in the BEP formula this year to cover those four ARRA jobs that you lost," Foster concluded.
Concerning the request to add three new assistant principals, one at DeKalb West, one at Northside Elementary, and one at Smithville Elementary School, Willoughby told the committee that new state and federal teacher evaluation requirements make these positions necessary to ease the additional workload on principals.
"A lot of other schools our size already have assistant principals, and have had them for some time,” Willoughby said.
“The tenure law has changed and the evaluation process has changed,” he continued. “This is a mandate and we'll have to do these extra observations.”
The school board’s proposed budget also includes a request for $250,000 in additional capital outlay spending, an addition that has caused some concern among budget committee members.
Willoughy told the assembly that the money was included to pay for renovations to the science and chemistry lab at DCHS.
The outdated lab has been under renovation since school closed in May and is scheduled to be completed by the start of school next month.
"When we started doing our science lab, we had no idea how much we were going to have to spend on that science lab so we put in $250,000,” stated Willoughby.
“Now that we've gotten started on it and plan to come in right at the end of this month, I don't think it will be $250,000. I think we're going to come out a lot better than we expected on it," he said.
The general purpose budget for schools totals $20,146,303, and consists of some local funding but is financed mostly with state money.
Willoughby said that although the system has projected the use of BEP reserves to balance its budget, it is possible that it may not actually be spent.
“Its become a tradition to balance our budget out of reserves, but we've been fortunate enough to get to the end of the year with our revenues having been more than expenditures,” Willoughby said. “So that's worked out. It would be nice though if we had those reserves each year so they could build up.”
All county budgets must be completed and ready for passage by no later than July 15 so that the county commission can get them adopted by early to mid August.
Following a two hour workshop on Monday night, the school board met in a special session to trim the proposed 2011-12 school budget.
The board is now requesting a 6.5 cent tax hike to balance the budget, cut substantially from the original seventeen cent increase.
The board is seeking an additional $169, 560 from the local option sales tax , also known as the "sinking fund" above the $1.5 million in sales tax funds already included in the budget.
The board has now reduced the proposed budget by $213,310, now bringing the total proposal to $19,932,993.
Projected revenues are budgeted at $19,655,962, which is $277,031 below estimated expenditures for the year.
Cuts from the original proposed budget  include a new physical education teacher at Northside Elementary School, an instructional coach and two assistant soccer coaches. Total cuts in this category equal $95,570
A total fuel cost of $290,000 had been budgeted, but that has been cut by $84,000
The board had requested an additional $250,000 in capital outlay expense, but that has been reduced by $31,855.
An additional $40,000 budgeted for updated hardware/software in the accounting department has been reduced by $1,885
The latest proposed school budget still includes a 3.2 percent pay raise for support staff or non-certified personnel and a 1.6 percent local increase to match the state's 1.6 percent pay hike for certified personnel.
Proposed new positions which remain in the budget are, a new fifth-grade teacher at Northside Elementary School, an additional math teacher at DeKalb County High School, an assistant band teacher, a support staff site coordinator at DCHS, a special education teacher at DCHS, and three new assistant principals, one at each DeKalb West, Northside Elementary and Smithville Elementary Schools.
The budget adds local funding back to the general fund for three teaching positions and an educational assistant, which for the last two years have been paid for with federal stimulus or American Recovery and Reinvestment Act (ARRA) funds that have now been exhausted.
The revised budget was adopted on a 5-1 vote.
School board members voting in favor were Kenny Rhody, Johnny Lattimore, W.J. (Dub) Evins, III, Charles Robinson and Bruce Parsley. Board member John David Foutch cast a "no" vote, stating that he would not vote in favor of any budget until he knows what one cent of the property tax rate is projected to generate. Board member Billy Miller was absent.