The Catoosa County school system is scraping the bottom of the barrel of the budget reserves.

Denia Reese, Catoosa school superintendent, said the budget deficit is mostly due to an austerity reduction taken by the state from funds it allots to the local school systems. The reduction started in 2003, after Sept. 11 when the state's economy fell into a slump. Reese said the state's economy has recovered; however, the reduction doesn't seem to be going away.

All in all austerity reductions have added up to a $9,399,402 loss for the school system in six years, according to school officials. Though these reductions have halved since 2006, falling from $2,221,661 to $998,086, the budget continues to grow and demand more funds. The question the Catoosa Board of Education faced when discussing the budget in July was - where are those funds going to come from?

Their answer was the taxpayer. Now the school board is holding public meetings so that the community's voice can be heard on an increase to the millage rate from 15.578 to 16.828. To put it simply, the owner of a $100,000 home that filed a standard homestead exemption would pay an extra $37.50 per year, or $3.13 per month, in property tax. A mill is $1 in taxes for every $1,000 in taxable property.

The first two public meetings on the budget were Tuesday and the last one will be Aug. 7.

Increases to the 2008 budget

The biggest financial burden facing the school system right now, said Reese, is the cost of maintaining Heritage High School.

Although the cost of building the $41.6 million school comes mostly from E-SPLOST, a penny sales tax for education, those funds can only be used to build. They cannot be used to pay for utilities and operational costs the school incurs before it even opens.

Reese said after the school opens in 2008 it will begin to receive state funds that she anticipates will balance out some budget expenses, such as it's anticipated $250,000 electric bill.

Not only that, but Reese believes the school will boost enrollment, which means more state funds.

Also new to the budget this year is a 3 percent salary increase, as well as step increases and a higher employer insurance contribution for teachers. These measures are state mandated.

And then there's Senate Bill 10, the state measure that allows special education students to take their state funding as a voucher and use it to pay for schooling at private institutions and out of district schools. It is unclear how many students will take advantage of this bill, but the school board knows that for every child that leaves, they take approximately $9,000 with them.

Despite multiple recommendations to add staff and teachers, the school board has been unable to reconcile the necessary wage increases with the fragility of the budget. Thus, the loss of four elementary school Spanish teachers, which the state decided not to fund for 2008. Special education heads at the high schools and three middle school graduation coaches will also not be signing onto the county's payroll. To fill the position of assistant superintendent, the school system hired from within. They also promoted another employee to the position of elementary school coordinator and scrapping the post of lead academic coach.

The school system has, however, complied with a SACS recommendation for a technology director by combining the position with data management coordinator.

Also adding to the budget woes is an anticipated 19 percent rise in gas, utilities and water/sewer bills.

However, there are two areas where the school system seems to buckle most under financial pressure. First, the state promises to fund special education at 40 percent, but Reese said the actual funding level is closer to 20 percent. Also, ESPLOST monies can pay for buses, but not the operational costs of running those buses. Almost two thirds of the funding for transportation comes from the local taxpayer.

Changes that could alleviate budget pressure

In 2012 the bonds used to build Heritage High School will be paid off with ESPLOST funds. Reese said she hopes those monies can then be allotted to increasing technology in the classroom, among other necessities.

Reese and the school board are also sending a letter to Governor Sonny Perdue and state legislators concerning the more than $1 billion worth of surplus in state revenue. There is a debate in the capitol concerning what to do with the money, and Reese said it should be reinvested in the local school systems.

In the meantime the school system has less than 5 percent of its budget in reserves, a number below the state's recommended 11-15 percent. Reese said the budget has been balanced for the last four years by taking money out of reserves, but that the school system can manage that no longer.

The proposed millage increase would funnel an additional $1,833,968 to schools. However, the school system will still need to take $3.8 million out of reserves to balance out the budget.

Have your voice heard

The next and last taxpayer bill of rights meeting will take place on Aug. 7 at 6 p.m. at the Board of Education in Ringgold. Learn more about the increase, ask questions and make comments to the board. The board will vote on the millage rate at its 7 p.m. meeting the same night.

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