School budget passes thanks to law change
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“This does give us another option this year,” Director of Schools Dr. Jerry Hale said of the new law. “But the money will have to be put in the budget next year.”
The school board’s original budget submitted to the Education Committee last month included a 5-cent property tax increase to fund a county commission mandate requiring the system to pay the retirement contributions of its support personnel. This year, an additional $207,000 is needed to comply with the ruling.
School officials had originally hoped to procure the money from within their own budget by transferring money from one budget category to another. They were told by the state auditor, though, that this move was illegal, prompting them to ask the commission for a tax increase to fund what school board members said is their responsibility.
In a change of direction, Hale informed the committee Monday night that changes to state law last week will allow the school system to pull the retirement money from its fund balance this year – a move previously not allowed because it is a recurring expense.
This change, however, is not permanent. The law stipulates such a move may only be done in years when the state reduces the revenue it traditionally shares with the local funding agency, in this case Warren County. Hale noted that next year the move from fund balance would most likely not be allowed, in which case the money would have to be provided by the county commission.
This apparently met with approval of committee members, who passed the General Purpose Schools budget unanimously. Passage of the remaining two budgets, Federal Projects and Central Cafeteria Fund, are mere formalities, committee chairman Bill Zechman said.
All three school budgets must now win the approval of the commission’s Budget and Finance Committee, as well as the full commission, in order to become operational.