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School system staffers warn of a possible tax increase, based on an analysis of the state budget proposed by Gov. Jeb Bush.
By KELLY RYAN
© St. Petersburg Times, published February 21, 2001
LARGO -- Unless the state Legislature performs a miracle, school property taxes will go up this year.
That's the message Pinellas School Board members heard Tuesday from the district's staff at a budget workshop.
It is far too early to guess how much the tax-rate increase will be. But administrators said even with a higher rate, there won't be enough money for lots of new school programs or significant employee raises.
"The outlook for this year will not be as good as last year," said Lansing Johansen, the district's chief business officer.
It is early in the state and the school district's budget process, with the Legislature set to convene March 6. The governor has released the details of his budget proposal, but the House and the Senate have not yet released theirs.
The numbers and priorities will change over the next few months, but most people seem to agree that this will be a tough year.
Last year, Pinellas schools raised employee salaries an average of 6 percent. Millions were used to enhance reading and algebra programs, and two teacher training days were added. About $7-million was added to a rainy-day account to offset costs in 2003, when parents start choosing their children's schools.
Even with the additional spending, School Board members were able to reduce the tax rate from $8.666 to $8.433 per $1,000 of taxable property value.
On Tuesday, the district's budget staff presented an early analysis of Gov. Jeb Bush's budget proposal that showed the district expects to lose more than $1-million for teacher retention and recruitment funds. The district could get $1.6-million more for school bus costs, but that would leave the district still paying $4-million more than it gets from the state.
In all, district budget director Doug Forth said, the governor's budget provides about $24-million in new money for Pinellas schools -- less than administrators want.
"Don't spend it all in one place," quipped School Board member Jane Gallucci.
About $1.6-million of the new money was pledged in prior years to reading and algebra programs, as well as needs for elementary schools. Some costs, such as fuel, are rising, so $2-million is pledged to that. The district pays basic health, dental and life insurance costs for its employees, and that will cost an additional $7.5-million.
Forth said that leaves about $11-million for 2.2 percent raises for employees. About $500,000 is available to begin changes recommended in a districtwide salary study to be released next month. No additional money is set aside for a rainy-day choice account, though last year district officials hoped they would be able to add another $7-million.
With so little money to work with, School Board members questioned how they can move ahead with their own priorities, including restoring some elementary music programs and hiring more guidance counselors. They wondered whether some employees would like to see the district stop footing insurance costs to be able to afford better raises.
The School Board will discuss the budget and the salary study at a workshop March 6. The recommended budget won't be released until late summer, with public hearings set for July 24 and Sept. 11.