Saturday, Sep. 06, 2008

School district set to approve $811.5M budget

Come Monday, the Manatee County school board will consider adopting an $811.5 million budget for the 2008-08 school year.

The latest proposed budget is about $1.8 million more than the tentative budget the board approved July 31, but also contains a lower property tax rate for local homeowners. The majority of the increased funds are from federal grants and rollover money from last year's special revenue funds, which pay for specific district operations, such as food service.

Manatee schools, like other public school districts in Florida, are also grappling with budget cuts.

Not only will the Manatee school district see a decrease in local tax revenues, it will also see more losses in its health insurance funds than what was originally projected.

In all, the operating and capital funds took up the largest portions of the budget - about $342 million each.

The operating funds pay for salaries, benefits and operational costs, while the capital funds pay for school construction, renovations and equipment.

The budget also included explanations of how the district managed to cut $21.4 million from the operating fund because of the state's sales tax revenue shortfall.

Those measures included a 1 percent pay cuts for teachers, custodians and other staff, and a 2 percent reduction for top district administrators.

This year, taxpayers will see a lower millage compared to last year.

At 7.372, the millage rate is almost 4 percent lower than what was levied last year.

Taxes on a home valued at $250,000, claiming a homestead exemption, will decrease from $1,725 last year to $1,659. However, a home with homestead that is assesed the maximum 3 percent increase in valuation will pay about $11 less in school taxes this year.

Local property taxes would bring Manatee schools about $181.1 million in revenue, down from $187.5 million last year.

The district also planned to set aside $6.4 million in its reserves, and another $1.5 million more in case of further cuts.

As for school construction projects, the district hopes to build a new Manatee Technical Institute, a replacement school for Palmetto Elementary, Rogers Garden Elementary school in central Bradenton and to remodel the Davis Building at Manatee High.

The district is planning to ask the board to issue bonds later this year to raise about $113.9 million to help fund those projects, said Tim McGonegal, assistant superintendent.

The district will be also starting the year in the red in its health insurance funds.

Originally, district officials anticipated to lose $3.9 million in the 2007-08 school year, but the final figure came in at $5.6 million, McGonegal said.

District officials are considering ways to rein in health insurance costs, which are projected to be at $40.2 million this year, McGonegal said.

Ideas such as moving to different insurance plans will be considered to help lower costs, but McGonegal.

The district's financial woes are far from over for the year.

At the last estimate district officials project they would have have to shave $6.5 million more.

The budget going before the board on Tuesday won't include the additional trims - and only works with what the state and the certified tax roll have appropriated.

Any changes would first have to be included in the state budget before it trickles down to the local school districts.

If you go

What: Manatee County school district's final hearing for the 2008-09 budget

When: 5:45 p.m., Tuesday, Sept. 9

Where: The school district's main administration building, 215 Manatee Ave. W.

Information: 708-8770 or visit www.manatee.k12.fl.us.