McGuffey to raise taxes next year
McGuffey School Board unanimously approved next year’s preliminary budget, with a tax increase and a $1.5 million deficit.
The district’s expenses for the 2018-19 school year are estimated at about $33.3 million, and the revenues are budgeted at $31.7. Business manager Amy Todd said the district will have until June 30 – when it is required by the state to adopt a final budget – to try to close that gap.
The district plans to raise taxes above the state-issued index, an exception it was approved for by the state in January. The current mileage rate is 11.91, and the district is raising it to 12.35, about 0.0797 above the index. The total revenue that will be generated by the new mileage rate is estimated at about $12.3 million.
Todd said during a budget presentation at last week’s board meeting that the district’s total proposed expenditures increased by just over 5 percent. Part of the problem is a drop in coal values. Todd said the district saw a $66 million reduction in the assessed value of CNX property, causing a loss of $715,162 in revenue this year alone.
“We did not receive notification that this was happening,” Todd said.
Her presentation also stated state funding makes up just 54 percent of the general fund budget, a number that “has not increased for several years.”
Todd suggested some cuts the board could consider in order to close the deficit, such as not replacing an estimated seven retirees, which would save the district about $345,000. She also suggested cutting a textbook-adoption plan that would cost about $350,000, as well as technology updates costing more than $85,000.
In other action Thursday, the board met for nearly two hours in an executive session for multiple reasons, including personnel and legal matters. After coming out of executive session, board member Edward Szygenda made a motion to “adopt the formal statement of charges and notice of hearing as presented.”
District solicitor William Andrews said the motion was “pertaining to personnel,” but did not give any other information about it.