New State Budget and PCSC

Over the course of the last two weeks, we have attended several meetings and we are beginning to get a clearer picture of the impact of the new state budget on Plymouth Community Schools. Senator Vic Heinold has provided us projections for the 2006 and 2007 calendar years. Those projections show that Plymouth Community Schools will receive a 1.6% increase in general fund monies in 2006 and a 2.1% increase in 2007. In order to achieve those gains, the school board will be required to raise the general fund levy by 4.2% in 2006 and 3.1% in 2007.

The legislature has also made provisions to raise monies to cover the state’s share of free and reduced textbook support which the state has been unable to pay, increased costs in utilities, liability and casualty insurance, and recover the loss of state aid in the transportation fund. These amounts total $209,339.00 in 2006 and $384,974.00 in 2007. The funding mechanism is to raise property taxes at the local level.

These projections indicate that the board is on target with the adoption of its spending reduction strategy.

The budget bill is an emergency act which means its provisions go into effect immediately upon signature by the governor. There are several other provisions included in the budget bill; among those is the restricted use of academic honors diploma monies. Our board of trustees is no longer allowed to give those monies to students. Those dollars must be used to fund and support programs.

The enactment of the new state budget leaves us with mixed feelings. We understand the severe financial circumstances the state faces. We have faced similar circumstances for the past four years. We are grateful to our legislators for providing the extra resources. Although some say that this budget was accomplished without raising taxes, in fact, we may see one of the largest increases in property taxes in recent history.