Miscalculation In Tax Rate Costs School System

The Jefferson County School Board met in a Called Meeting on Thursday, June 5, 2014 at the Patriot Academy.  The Meeting was Called to Order by Chairman of the Board Potts. Absent from Roll Call was Board Member Rogers.

Upon a Motion from Board Member Vines and 2nd from Board Member Cavanah, the Board Approved the Consent Agenda. Under New Business, with a Motion from Vines and 2nd from Board Member Bradley the Board Approved 2013-2014 general budget amendment #14 and federal budget amendment #14 (end of fiscal year general housekeeping).

Under Unfinished Business, Jefferson County Finance Director Helton informed the Board that a miscalculation in the Finance Office resulted in an increase in the overall deficit of the budget proposal for the fiscal year 2014-2015 that is currently in the budgeting process with the County Commission. Helton stated that he had mistakenly calculated revenue using a tax rate of $2.18 which is 3cents higher than the actual current tax rate of $2.15. The overstatement provided an inaccurate revenue projection. Helton said that he included the deduction of $58,250 , which was the amount of ½ a tax penny in the 2013-2014 budgeting cycle. During the 2013-2014 budgeting cycle the County Commission cut the school system tax allocation by two pennies and the County side by one penny ( $233,000 for schools and $116,500 for county). In an effort to equalize the cuts the county allocated $58,250 from their general fund balance to absorb ½ a penny of the school system cut-leaving both the County and School System absorbing 1 ½ pennies ($174,750) in cuts. The current budget proposal will have a deficit increase of $174,750 which brings the total deficit to $1,943,370. Helton stated that he had based revenue figures on the tax penny being worth the current rate of $116,500 however the anticipated rate for 2014-2015 is $113,500 which will also impact revenue projections negatively.

Bradley made a Motion to send the presented budget, which includes the $1,943,370 ( minus $5,443 adjustment in the property tax revenue line) to the County Commission and was 2nd by Vines. Both Vines and Board Member Lowery read disclaimers before the vote was Called. The Motion Passed Unanimously.

One citizen addressed the Board concerning an ongoing issue with Administration at Rush Strong School. The Board assured the citizen that no repercussion would come from teachers or parents speaking out regarding this or any other issue. Director of Schools Edmonds stated that he is aware of the issue and is working to alleviate the situation.