After beginning the 2013-14 school year with a projected deficit of nearly $7 million, the Vicksburg Warren School District turned that deficit to a $1.12 million surplus by focusing on its needs.
Meeting Tuesday in a special called meeting, the Vicksburg Warren School District Board of Trustees approved an amended budget for 2013-14 with revenue of $76,808, 321 and expenditures of $75,678,384.
State funds, through the Mississippi Adequate Education Program were $33.5 million, or 43.65 percent of the revenue stream. Statewide distribution of MAEP funds is based on a school district’s average daily attendance totals. The school district millage of 47.81 mills brought in $27.1 million or 35 percent of the districts revenue. The remaining $16.2 million was a mixture of special revenue from local, state federal and 16th section land funds.
Former financial director Dale McClung said in June that by fiscal 2012-13, the board had emptied its carryover account to cover a running deficit.
“Now we’re starting to work on our 16th section,” McClung said. “I think probably it stops a year-and-a-half from now. We run out of 16th section, and the state will come in here and take us over.”
That is not true of the district anymore with a fund balance in the carryover account of $7.5 million. The 16th section funds are broken into two accounts — a principal and an interest account — with a balance of $3.9  million in the principal account and $6.3 million in the interest account.
New financial director Shaquita Burke has brought quite a financial turnaround for the district. “The biggest thing we’ve been focusing on was the needs of the district and not the wants,” she said. “After closing the fiscal year there were some departments that spent less than anticipated.” That money was then transferred to cover other operating expenses.
In June the board heard a presentation from Warren Greenlee, an attorney with the Young Law Group in Jackson that specializes in public and bond finance law.
After elaborating broadly on ways to increase revenue, Greenlee made direct suggestions for the district that would not raise taxes substantially for an individual but would prevent the district from running a deficit for the first time in three years.
Greenlee noted that a millage increase of 1.34 mills, would raise nearly $1 million yearly for the school district.
The trustees approved the 4 percent hike June 30, increasing the school district millage by about 2 mills, from 47.81 mills to almost 50 mills, which is projected to generate about $1.6 million.
The 4 percent was the maximum millage increase the board could seek without calling a referendum.
Districts traditionally request a certain amount of money from county governments, who then levy the necessary mills to meet that figure.
Property taxes are expected to rise $34.30 as a result of this year’s millage hike.
Madison and Clinton schools currently levy nearly 70 mills compared to the VWSD’s 49.81 mills.
Both districts are also paying for one-to-one technology initiatives — putting a small laptop computer or tablet in every student’s hands — with tax increases. The one-to-one initiatives aim to lower long-term textbook costs by purchasing them digitally.
Public school districts in Mississippi may request up to 55 mills annually for operating expenses. That limit does not apply to taxes levied for capital improvements, such as building renovations and construction.