Monday, January 24, 2011

More on Ms. Klein's Forecast

Looking more closely at the 1.4.11 Forecast, specifically the Federal (incl stimulus funds) line that represents 2% of the Revenue, I found two articles today that Ms. Klein should read.  State tuition voucher proposal on path fraught with questions.
"This school year, the state is counting on $654.7 million in federal economic stimulus money to help foot the basic education subsidy bill.
But that money -- which accounts for about 11 percent of the basic education subsidy this school year -- is not expected to be renewed for 2011-12. The state also expects to lose millions of dollars in stimulus money for other aspects of education and other services."

The other article that Ms. Klein should read is Politicians Balance Budgets With Money for Classrooms. 
"U.S. governors and legislatures facing deficits of more than $140 billion are slashing local school budgets, cuts that may mean jammed classrooms, fewer teachers and libraries without librarians."

This is not good news at a time when the School District is asking the Commission for final approval on the High School project. 
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5 comments:

  1. AnonymousJanuary 24, 2011 at 10:56 PM

    If Assessments reflect no changes and the millage increases, why do the Real Estate Taxes stay flat from 2010-2011 until 2015-2016?

    This doesn’t make any sense.

    John Ewing

    ReplyDelete
  2. Lebo CitizensJanuary 24, 2011 at 11:04 PM

    John,
    Even the VOICE website says that we will be paying $18 a month more in real estate taxes for a $200,000house.

    ReplyDelete
  3. James FraaschJanuary 25, 2011 at 9:18 AM

    While it is confusing, it is not as nefarious as one might think at first blush.

    See the millage rate at the bottom? That keeps going up. What happens when you raise the millage rate? Real Estate Revenues necessarily go up in kind.

    The problem is that the "Out of Balance" number is not shown but is rather implied due to the increased millage number.

    So if you see that revenues are less than expenses by $4 million, then the corresponding millage rate will go up by 2 mills roughly.

    In past forecasts the "Out of Balance" number was shown in order to avoid this type of confusion.

    Hope that helps.

    James

    ReplyDelete
  4. John EwingJanuary 26, 2011 at 2:57 AM

    James,

    I didn't say it was nefarious; I said the budget document makes no sense.

    You are right about it being confusing.

    Why would anyone show a budget with steady assessments and steady Real Estate Taxes while the Millage increases.

    Last January we had another out-of-balance Budget for the public meeting and the real balanced Budget was shown privately to the Board in February.

    Do you suppose the Board quietly received a balanced Budget with a real Millage Increase and real Real Estate Taxes since this Budget was published?

    ReplyDelete
  5. john kendrickJanuary 29, 2011 at 3:42 PM

    Isn't Jan a Katz MBA alumni?

    W-O-W!

    ReplyDelete

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