By Nan Cooper / Staff

Faced with a budget gap of over $117 million, the Fulton schools Superintendent Dr. Cindy Loe is now proposing a property tax increase and furloughing all employees for three days next year. That's after she and the Board cut over 500 jobs for next fall, eliminating popular programs like elementary band and orchestra and reducing the calendar by three days.

And all that still only gets them 75 percent of the way there.

THE TAX MAN COMETH

Loe's current proposal is to raise the remaining $28.7 million needed to close the budget gap through a one-point increase in the property tax millage rate. Currently, Fulton County's school taxes are lower than all other metro counties with a millage rate of 17.5 (a mil equals $1 in taxes for $1,000 of net assessed property value). Cherokee is at 18.85 mills, Cobb is at 19.12, Gwinnet is at 20.55, City of Atlanta is at 21.69 and DeKalb is at 22.98. An increase of 1 mill for an average home of $200,000 would equal an increase in funding for the schools of $80 per household, provided that the assessed value of the home does not go down … but down they are going.

Roswell's Linda Schultz, Fulton County School Board VP, has previously been opposed to a tax increase. "I hate that we're having to consider a tax increase, but further staff reductions would be detrimental to student achievement."

WHERE IS THE BOTTOM?

According to Robert Morales, Fulton County School System CFO, the Fulton County Assessor's office has received 29,000 appeals, 15,000 of which are in the FCSS district (City of Atlanta Schools are a separate school system even though the city is within Fulton County). If all appeals were accepted as is, the reduction in the tax digest would be 12 percent as opposed to the current FCSS budgeted estimate of 6.7 percent. This would mean an additional $31 million reduction. But luckily for Morales, it is unlikely that the Chief Assessor will accept all appeals as is and is predicting a reduction for FCSS only in the 6-8 percent range.

BORROWING FROM PETER TO PAY PAUL

Also included in Loe's recommendation is to use $10 million from the reserves for next year's operation. There is a precedent for this as the board used $40 million in FY2009. However, the reserves are now very close to the minimum required for cash flow purposes. According to Schultz, "we're being fiscally responsible and we're using our reserves to the extent possible without jeopardizing the financial viability of the organization." The school board must be careful with cash flow timing this year as property tax payments may again be late this year due to the high number of appeals. Last year, the payments came in so late that FCSS had one month when they were just about to borrow money to make payroll.

TIGHTENING THAT BELT

These days most people are finding ways to spend less money and the school system has done likewise by eliminating field trips, cutting back bus service, reducing the calendar, increasing the class size, postponing painting and maintenance. The result is that the proposed expenditure per pupil for next year will be $8,638 per student, down nearly 10 percent from $9,593 in FY2009.

The school board continues to invite the public to participate in the budget process. All documentation is on the school website at www.fultonschools.org, where previous board meetings can also be viewed online. The next budget meeting is on May 11 at 6   p.m. at the FCSS offices in College Park. See the website for a complete schedule and locations.

Upcoming Public School Board Budget Meetings

May 11, 2010
6:00 – 6:30 p.m.
Public Budget Hearing #2
Administrative Center
786 Cleveland Ave.
SW, Atlanta, GA 30315

May 11, 2010
6:30 p.m.   
Tentative Budget Adoption
Tentative Millage Rate Adoption
Administrative Center

June 8, 2010
6:30 p.m.
Final Budget Adoption  
Administrative Center

June 17, 2010
6:30 p.m.
Final Millage Adoption
Administrative Center