Despite steep budget cuts, alternative may provide some relief
Thelma Grimes/San Pedro Valley News-Sun
State lawmakers say they might have found an alternative and public education cuts will be less than the $300 million originally proposed.
Representatives David Stevens, R-District 25, and Frank Antenori, R-District 30, said last week that public education will still take a hit of about $175 million.
School districts across the state continue to play a guessing game, as they prepare for the inevitable cuts. David Woodall, superintendent of the Benson School District, said he expects the entire budget to be cut between 4 and 8 percent. Calvin Baker, superintendent of the larger Vail School District expects the same.
Both districts tried to avoid layoffs and are proceeding with issuing teacher contracts for the coming school year, but both have agreed it's tough to plan for anything when the state legislature has all the answers.
Antenori said schools won't take the $300 million hit originally proposed to help balance the state's $3.5 billion deficit, because it appears the state will be able to avoid cuts to school districts' maintenance and operation budgets, which means no cuts to teachers' salaries. All education cuts now being proposed are in soft capital, he said.
Antenori said this is going to be possible through the state's taking excess tax funding held by county treasurers. Antenori said each year, school districts tax property owners a certain amount per $100 of the assessed value. Of those collections, sometimes there are excess amounts that are held by the county treasurer.
"The county treasurer then rebates it back to taxpayers," Antenori said. "This year we are going to take that excess money. That way money doesn't come from the school districts, and it only affects property owners."
Antenori said it will be a one-time thing to help the state balance the budget.
Woodall has some concerns about this plan.
Woodall said the cash balances Antenori is referring to equal about $2.3 billion, and the funds are accumulated for specific purposes and cannot be touched by the legislature.
"As an example, we show a large cash balance for several years in our adjacent way fund that we have been accumulating for the current construction project," he said. "Had we levied for this one year it would have been painful for the taxpayers. We have built it up over the course of several years.
"Any cash on hand that is not in a specific fund can only be used to lower the local taxes. This is the money the legislature would like to access. If these monies are raided, we have no funds for growth that occurs mid year and lose our ability to keep a stable local tax rate."
On Thursday, the schools' governing board approved a more than $70,000 amendment to the current school year's budget.
The school had to amend the budget to accommodate cuts made by the state this year.
Proving Woodall's point, Connie Ayres, the districts' business finance manager, said they were able to overcome the major cuts because of the added funding from growth this year.
Antenori and Stevens said the state's entire $28 billion budget should be approved in the next few weeks.
In order to go to the Senate for approval, the budget will need 31 votes in the House of Representatives. Antenori said he was not going to vote in favor of last week's proposal due to some language problems and pet projects from other legislatures. He said if not for federal stimulus money, the state's budget crisis would be even worse.
State lawmakers say they might have found an alternative and public education cuts will be less than the $300 million originally proposed.
Representatives David Stevens, R-District 25, and Frank Antenori, R-District 30, said last week that public education will still take a hit of about $175 million.
School districts across the state continue to play a guessing game, as they prepare for the inevitable cuts. David Woodall, superintendent of the Benson School District, said he expects the entire budget to be cut between 4 and 8 percent. Calvin Baker, superintendent of the larger Vail School District expects the same.
Both districts tried to avoid layoffs and are proceeding with issuing teacher contracts for the coming school year, but both have agreed it's tough to plan for anything when the state legislature has all the answers.
Antenori said schools won't take the $300 million hit originally proposed to help balance the state's $3.5 billion deficit, because it appears the state will be able to avoid cuts to school districts' maintenance and operation budgets, which means no cuts to teachers' salaries. All education cuts now being proposed are in soft capital, he said.
Antenori said this is going to be possible through the state's taking excess tax funding held by county treasurers. Antenori said each year, school districts tax property owners a certain amount per $100 of the assessed value. Of those collections, sometimes there are excess amounts that are held by the county treasurer.
"The county treasurer then rebates it back to taxpayers," Antenori said. "This year we are going to take that excess money. That way money doesn't come from the school districts, and it only affects property owners."
Antenori said it will be a one-time thing to help the state balance the budget.
Woodall has some concerns about this plan.
Woodall said the cash balances Antenori is referring to equal about $2.3 billion, and the funds are accumulated for specific purposes and cannot be touched by the legislature.
"As an example, we show a large cash balance for several years in our adjacent way fund that we have been accumulating for the current construction project," he said. "Had we levied for this one year it would have been painful for the taxpayers. We have built it up over the course of several years.
"Any cash on hand that is not in a specific fund can only be used to lower the local taxes. This is the money the legislature would like to access. If these monies are raided, we have no funds for growth that occurs mid year and lose our ability to keep a stable local tax rate."
On Thursday, the schools' governing board approved a more than $70,000 amendment to the current school year's budget.
The school had to amend the budget to accommodate cuts made by the state this year.
Proving Woodall's point, Connie Ayres, the districts' business finance manager, said they were able to overcome the major cuts because of the added funding from growth this year.
Antenori and Stevens said the state's entire $28 billion budget should be approved in the next few weeks.
In order to go to the Senate for approval, the budget will need 31 votes in the House of Representatives. Antenori said he was not going to vote in favor of last week's proposal due to some language problems and pet projects from other legislatures. He said if not for federal stimulus money, the state's budget crisis would be even worse.
| Preliminary budget talks top work session | Community Briefing |
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