Manatee school board bats around millage increase

County residents watched the teacher’s union and School District of Manatee County battle over salaries and benefits during a months-long contract dispute this winter and spring. As Manatee’s teachers pointed to better wages in neighboring counties, district officials had a simple retort — those counties receive more local funding because of voter-approved millage increases.

Now Manatee County’s school board is considering asking voters to increase the millage in Manatee.

At a Tuesday afternoon board workshop, district Chief Financial Officer Rebecca Roberts made a strong case for the increase, and board members will continue the discussion at an April 24 workshop.

Roberts reviewed her three-year forecast with the board, projecting a state-wide teacher shortage, increases in inflation from roughly 1 percent annually to 2.25 percent, increases in gas, diesel and electricity costs and the necessity of building three new schools to open in 2019.

Roberts said projected revenue wouldn’t be enough to cover those increased expenses, and that if the district did not actively pursue additional funding, it could end up millions in debt in two years. But, increasing revenue by 1 mill would generate $33 million for the district, and a half-mill increase would produce $16.5 million, Roberts said.

“If we did nothing and things continue to grow at the rate they are growing, our fund balance would drop to negative $21 million,” Roberts said. “But we are not going to sit on our laurels, we are not going to do nothing ... we are feverishly working.”

Roberts said that over the past three years, salaries have increased on average 4.2 percent each year, and benefits have increased 11.7 percent per year. Employee compensation accounts for 75 percent of the budget, and teacher salaries account for roughly 75 percent of employee compensation. That means any meaningful cuts to the budget would mean cuts to teacher compensation.

“When we talk about cutting costs, where are we going to cut them? You have to cut people,” Roberts said. “You have to cut positions, hours, or salary and benefits.”

Board member Dave Miner said he was a strong proponent for increasing the millage, and he said he wouldn’t be satisfied with less than a full mill increase.

“We shouldn’t shortchange our children or our employees,” Miner said. “There is a great sense in this community that we should support our public education like neighboring communities.”

School board Chairman Charlie Kennedy said he would opt for a more cautious route, first asking voters to approve a half-mill increase.

“That will be easier for the voters to approve,” Kennedy said. “There are still some trust issues because of the history we’ve had, and in the short term due to the (teacher’s contract) impasse. But there is no denying the district is in better shape.”

The district’s fund balance needs to remain above 3 percent to avoid potential state oversight. While the district increased the balance by $21.9 million in the 2013-14 school year and by $2.9 million in 2014-15, the district has had to tap into the reserves the past two school years. The district has pulled $3.189 million from the reserve funds so far in 2016-17.

Roberts anticipated the district the reserve fund will be at 3.3 percent at the end of the fiscal year in June.

This story was originally published April 11, 2017 at 6:40 PM with the headline "Manatee school board bats around millage increase."