At Monday evening's meeting of the Loudon County Commission, commissioners are set to vote on the county's long delayed budget. The most controversial item in the budget is the amount of funds for the county school system.

The commission will decide on whether to finance an additional $793,000 for the county schools proposed operating budget for 2009-2010 or to use that money to help finance the system's proposed building program. The commission cannot line item the school budget. Commissioners are only able to give the school board a bottom line figure and it will be up to the school board members to decide how to use the allotted funds and what, if any, school programs or employees might have to be cut in order to balance their budget.

Representatives of the school board at first told the county budget committee they would be willing to spend approximately $400,000 from the system's reserve funds for textbooks for the 2009-2010 year but the committee felt such a move would cut the school system's reserves to dangerously low levels. Ultimately, the budget committee recommended the commission fund the nearly $800,000 increase in the operating budget including the text book funds.

The school system's total proposed budget is approximately $38 million and the school board is considering how, when or if to begin Phase I of the school building program. Estimates on the amount of money needed to complete the first phase of the plan range from $30 to $48 million.
Due to the struggling economy and lower tax revenues, the school system has already had to cope with less money than expected from the Basic Education Program (BEP) funds the county will receive from the state for education.

At earlier meetings, commissioners have appeared divided on whether to prioritize the operating budget or the school building program. Most commissioners seemed to feel the county cannot afford to increase the operating budget and put away funds for the building program at the same time.
Commissioner Don Miller has been the most vocal opponent of increasing this year's school operating budget- a move he has said would cripple the school building program.

He has presented handouts outlining how the county has increased property taxes by 40 cents over the last four years. Out of the property tax, which 39 cents went to the system's operating budget and 15 cents to the building program. He has estimated this comes to about an 8.6 percent per year increase in the operating budget over the last five years compared to 2.6 percent increase in inflation and little student population growth. Miller disagreed with putting an additional $793,000 in the operating budget this year and concluded that amount would support an additional loan of almost $10 million for the school building program.

Other commissioners disagreed with Miller's conclusions. Commissioners Harold Duff and Nancy Marcus, both former educators, said they felt employees and successful academic programs are a higher priority than the buildings themselves. Commissioner Austin Shaver agreed more with Miller's assessment but he has told his fellow commissioners it should not be an "either, or" situation. He did say he felt no program could be successful if students are forced to hold classes in storage closets and trailers due to dilapidated and overcrowded buildings.

Commissioners seem divided on whether or not to increase the school system's budget for operating expenses. With the budget months overdue, the commission will vote on the entire county budget Oct. 12. Monday evening's vote should allow the entire county budget to be sent to the state for approval.

If the school system's proposed budget is rejected by the commission, the school board will have to revamp the proposed school budget to find places to cut the projected $793,000 overrun to fit whatever amount he commission authorizes.

mary.hinds@news-herald.net