Millage Rate Increase and Furlough Days Recommended to Close Oconee Schools' Budget Gap

In order to close a $1.2 million projected budget gap heading into the 2013-14 school year, Assistant Superintendent of Financial Operations Randy Morrison asked the Oconee County Board of Education Monday to consider increasing the millage rate by one mil and implementing two employee furlough days for fiscal year 2013. 

According to Morrison, declining state education funding --austerity cuts amounting to a more than a $26.5 million reduction in revenue that was to be been funneled to Oconee Schools since 2002-- means more of the burden to fund the $53.2 million budget must be borne locally.

"[The Georgia General Assembly] want[s] us to pay that extra cost for education.  They certainly haven't.  It's up to us," he said. "Hopefully voters will know that come election time and support those who are supportive and defenders of public education and certainly not support those who don't support public education."

How do you think the budget gap should be closed? Do you agree with Morrison's proposal of a mix of revenue increases and expense reductions? Tell us what you think in the comments below.

Borrowing funds to cover the gap would only be a short-term solution and doing nothing would increase the shortfall to nearly $3 million the following year, Morrison explained.

"We're trying to look long term to position ourselves so that we don't have to make a drastic reaction to FY14," he said. "Considering all the options, we've crafted the budget to combine both a reduction of expenses as well as a revenue increase to close this $1 million shortfall."

Most taxpayers to pay same or less

The millage rate has been 16.5 mils since 2007, though the net tax digest has decreased during the same period, Morrison told the Board.  An increase would return it what he calls a slightly less than "relative neutral position."

"What we're looking at is an incremental adjustment so as not to add taxes-- additional taxes -- but so that the average taxpayer would pay the same or less than what they paid this year."

However, Morrison admits a smaller percentage of property owners who've made certain improvements or who fall under reassessment may not fit into that category.

The increase to 17.5 mils is expected to generate a little more than $1 million  and "would go a long way towards balancing the budget not only this year but as well as for next year."

"If used cautiously, and until such time as the revenue is restored by the state, the Board of Education begins to steady the revenue stream needed to appropriately fund public education here in Oconee County," Morrison said.

Expenses already reduced, furlough days still needed

The Board has already worked to reduce expenses in various ways. Since 2009, 38 certified and 29.5 non-certified positions have been cut, only critical positions have been rehired, and there have been no new pay raises. No new textbooks have been ordered in more than four years and technology upgrades and replacements have been transferred to be covered under the education local-option sales tax.  

But at the same time, the school district has had to contend with rising transportation and utility costs, Morrison explained. The employer share of benefits also increases year after year. Furlough days -- days employees take off without pay-- is one way to further cut expenses.

employees were required to take three furlough days.  This year, Morrison recommends reducing the amount of furlough days to two, for a total savings of $461,520.  The reduction in one furlough day helps keep morale up, he said.   Additionally, the employee portion of teacher retirement goes up next year, taking more out of teachers' take-home pay, and the extra day helps offset that additional cost to employees, he said. 

'Stick to our budget'

When compared to across the state, a $1.2 million shortfall may not seem dire.  But to try to compare one government body's or school system's budget to another is "foolish," Morrison told the Board. 

He advised Board members, "Stick to our budget, that's what you know. And I'm your resource to help you answer those questions. Don't talk about the other government's budget, don't talk about the other school systems. We don't know what challenges they face or what their issues are.  But we do know our budget and, as we talk about this, we need to stick to the main parts of where it is."

Next steps

The Board will consider the tentative budget at its meeting next regular meeting, Monday, May 14 at 5 p.m.  If approved, it will be advertised for four weeks before a final vote. Though the Board isn't required to hold a public hearing, Morrison suggested planning at least one before the final vote.

Whatever the millage rate, it will be set by the Board in July after the tax digest is consolidated, and sent to the Board of Commissioners and later to Atlanta for validation.

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