By Christine Makar
During their monthly work session on June 9, the Sarasota County School Board members discussed the largest impact to their capital budget for 2009-10 – a reduction in revenue created by Florida Legislature action.
The legislature had decided to take .25 mills of the board’s current 1.75 capital millage rate for the purpose of capital budget funding and move it to discretionary millage. The latter is used for general operating expenses. This reduction would put the capital millage rate at 1.5.
Last year, the legislature reduced the millage rate from the board’s typical 2 mills, from which for many years the biggest portion of property tax revenue had come in to the schools’ budget, to the current 1.75 millage rate.
On the positive side, the board discussed preliminary county figures showing a smaller reduction in property values. Initially, the board was expecting a decrease of about 20 percent; instead a 12-percent reduction is anticipated.
The board has continued to take a very conservative stance on the budget, so the capital plan is built around the property tax reduction of 20 percent for the 2009-10 fiscal year. Superintendent Lori White said that the planning of the capital budget had taken into account the worst-case scenario, so the board can assess the budget as revenue improves instead of trying to make adjustments as it gets worse. However, this method will require revisiting the issues throughout the year; still, White believes this is in the best interest of the district. Just as the board did a great deal of planning for the general operating budget, she said it should do the same with the capital budget.
"During these times," said White, "it’s very difficult to predict the future years’ revenues. So, many of the things we have done in terms of adjusting the out-year budgets, taking out projects. I have every belief that we will be coming back to [the board] with a little bit better revenue situation, but it is my philosophy to be able to present to [the board] what I believe the worst-case scenario is and what would have to happen if we had that worst-case scenario."
A moratorium on impact fees for one year had been built into the budget as well. Chair Caroline Zucker asked White to explain the impact of that moratorium on area schools, such as the new Riverview High School.
The board is projecting a reduction in the cost of that school of about $600,000 – funds that would remain part of the capital budget. However, restrictions exist on how those dollars can be used. The district has received or maintained some funds that have not yet been expended but probably will be used for land purchase.
The board must dedicate those funds to growth. During this time of significantly declining enrollment, the board doesn’t have a lot of capital needs for growth, White noted. So, funds are ready in the budget for that use, and even with the small reduction of revenue that a one-year moratorium might cause, the board has sufficient funds to do what needs to be done for growth purposes in the areas restricted for those impact fees, White said.
In spite of the school board’s planning, the Sarasota County Commission on Tuesday refused to agree to a moratorium on impact fees. The commission rejected the school board’s request on a 5-0 vote, saying it was not consistent with the county’s comprehensive plan.
The school board members Tuesday also discussed the technology budget. The preliminary budget for 2009-10 is $8,407,500, a reduction of $3.15 million, thanks to moving a lease-purchase of computers into the debt section of the budget. The computers will be expensed over several years.
The board considered budget cuts to project appropriations the most painful. The budgets for the rebuilding projects of Booker, Riverview and Venice high schools were reduced by $23,946,677, $7 million and $18,056,055, respectively.
The second phase of the Sarasota County Technical Institute rebuild will also be reduced. The preliminary budget for 2009-10 is $1,003,652, a reduction of more than $4 million. The project costs have been revised since last March, based on current market conditions and the purchase of computers being moved to the lease-purchase portion of the budget. Once the construction on Atwater Elementary School North Port is completed, there will be additional funds from the current certificates of participation (COPs) borrowing that can be added to the project, according to district staff.
Chief Operating Officer Scott Lempe said the COPs borrowed for Atwater were more than needed, so the board will be able to utilize the remaining funds for Phase Three of the construction of SCTI and the Suncoast Polytechnical High School, which includes service programs, classroom space associated with adult education and the funding for the Riverview High ball field on the SCTI campus.
The entire project, including phases 1-3, will cost a little more than $100,000. Board member Carol Todd commented that, although there is need in the community for the project, the board’s capital budget is for K-12 schools only, and no funding for the SCTI projects are available from the state. She said that there may be a need for legislative discussion on the matter.
Zucker disagreed, saying that because SCTI and the polytechnical school are community schools with adult education sections, they are too important to not be funded.
This push for a technical institution has been going on since the 1990s, Zucker said. "It’s time."
June 11th 2009 - 2:52PM