State budget crisis could affect Monroe schools
On Thursday, the majority of the Monroe City School Board met at the Hilton Garden Inn in West Monroe for a retreat during which they discussed the 2015 school board audit, the consent decree and how to improve board relations.
Superintendent Brent Vidrine and Monroe City School District Chief Financial Officer DaVona C. Howard answered board member's questions about the audit.
Vidrine said changes to the state teacher's retirement program have effectively enacted an unfunded mandate for school districts to pay into the program, which has increased budget strain.
The superintendent said the district also has had to pay for some items that it tried to budget for without knowing the total costs of, such as insurance cost increases because of the Affordable Care Act and items in the consent decree. ACA costs, Howard said, are $300,000 more than what was paid at this point last year, and Vidrine said the consent decree already has cost the district $85,000 in this fiscal year.
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Vidrine and Howard also outlined how potential budget cuts at the state level could affect the district's budget. Vidrine said proposed budget cuts at the state level could pull $512,000 from the Minimum Foundation Program payments for April, May and June. Another $2,328,000 could be lost if the inventory tax and inventory tax credit are repealed.
The inventory tax requires businesses with large amounts of inventory to pay taxes on that inventory to the parishes. The state then offers a full refund to the businesses for the amount paid.
If the Legislature were to repeal the tax, the parish could lose approximately $11 million that would go to law enforcement, Ouachita Parish School Board, Monroe City School Board, Ouachita Parish Library, hospitals and Ouachita Correctional Center.
The board receives approximately $8,000 per student from the state through MFP funding, which Vidine said makes up about half of the board's budget. About 40 percent of the budget comes from local sales and property taxes, and the other 10 percent comes from grants or other sources. For every Monroe City Schools students who leaves to go to a charter school, the district loses funding. Currently, there are three charter schools in the district, and Vidrine said the Board of Elementary and Secondary Education is considering a new K-12 charter for the same area.
Monroe Federation of Teachers president Sandie Lollie said there has to be a public outcry about state school funding for charters.
"It's killing us," she said. "It really is killing public education."
Board member Bill Willson asked if some projects that were paid for in addition to the bond issue would be covered. Voters unanimously passed a $58.8 million bond issue for capital improvements in 2013. Vidrine said some projects came in under budget and some came in over budget, so they need to review that issue. The main issue, he said, will be keeping construction for the new Martin Luther King Jr. Middle School within the allotted costs.
Board President Rodney McFarland asked how much the surplus is. Vidrine said it's about $15 million, but the state requires that the board keep about $9 million on hand. The superintendent said the district will be OK for a year or two, but after that will see a sharp decline if deep cuts remain in effect.
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The board members present also discussed board relations.
Former state Sen Charles D. Jones was the moderator. He cited Romans 12:4 and encouraged the board to remember that it is one body with many members. He said the desire to serve the children's best interest should transcend race or party.
Board member Daryll Berry said they needed to communicate more and not take things personally when other board members vote differently.
Member Vickie Dayton talked about not belittling each other during the meetings, and McFarland and Vice President Brenda Shelling talked about not painting the opposition as the enemy.
Jennifer Haneline, District 2, was absent.