RYC Pascagoula - Moss Point

Public hearing answers Moss Point alderman's concerns about school district budget

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View full sizeMoss Point alderman Wayne Lennep (file photo)

MOSS POINT, Mississippi -- Alderman Wayne Lennep said that he was satisfied with financial information that he heard this week during the public hearing for the 2013-14 budget of the Moss Point School District.
Previously, he'd voiced concerns about the amount of money spent per student, the closing of several schools in the district and an upcoming request for the Board of Aldermen to increase city millage to cover a fiscal 2013 budget shortfall from city funds.
"I am generally pleased with the overall downward trend in spending and millage rates over the past several years. The public should know that we have dropped from nearly 80 mills in 2005 to 61.54 in 2013," he said.
"The board's proposed budget estimates a slight increase to 61.75 may be needed from the city in 2014 to cover an $85,000 revenue shortfall in 2013," said Lennep.
Lennep and former Alderman George Martin, both of Ward 6, were the only Moss Point residents who attended the public hearing.
Chief Financial Officer David Rubenstein gave an overview of administrators and staff, student population and services, and figures showing revenues, expenditures, debt service, ad valorem taxes and daily operation costs.
Lennep discussed other avenues to fund the shortfall in the district's fiscal 2013 budget other than the city raising its millage rate. During July, Rubenstein said the $83,202 budget shortfall for 2012-13 was only 1 percent of the district's request of $8.9 million revenue from local ad valorem tax collections.
Rubenstein said the shortfall, which is included in the fiscal 2014 budget, could be covered by a small increase in millage by the local taxing authority, which is the Moss Point Board of Aldermen. One mill in Moss Point equates to about $119,000, he said.
"The only source of revenue a school district has, by law, is a tax increase," said Rubenstein.
He said a lump sum payment could have been made to the district by June 30, which ends the fiscal year. Rubenstein said discussions were held with city officials about the shortfall.
The overall budget includes $26,733,860 in revenues, $27,844,858 in expenditures, $1,110,998 in excess of revenue over (under) expenditures, $1,000 in other financing sources.
Net change in the fund balance includes reserved $293,215 and unreserved of $816,780.
"We are spending more than we are getting," said Rubenstein. "We are using $816,000 from our rainy day fund. We are spending some of our reserves."
The sources for the fund for the budget include $12,083,008 in state sources, $8,769,443 in local funds; $5,871,821 in federal sources and $9,588 from Sixteenth Section sources.
For fiscal June 30, 2014, the estimated fund balance will be $8,273,613 in reserved and $3,583,217 unreserved.
As for July 1, 2013, the estimated fund balance was $8,566,828 reserved and $4,400,000 unreserved.
Rubenstein also said enrollment has decreased from 4,020 during 2003-04 to 2,342 for fiscal 2013. He expects a 5 percent decrease in fiscal 2014.
Rubenstein reported that Moss Point spends about $12,375 per student, and instruction cost is $7,900.
"The majority of schools on the coast spend more than the average," said the chief financial officer. "Normally, the county schools don't spend as much as the municipalities."
Moss Point School District has 165 teachers, including 47 with masters degrees.
"We are getting more teachers that have master degrees," said Rubenstein. "That's good for the district."
Of the 378 employees in the district, 54 percent are in the classroom. As well, 79 percent of operating costs go toward personnel.
He said that revenue and expenses will decrease because construction of Magnolia Middle School is now complete. Classes started Tuesday in the $20 million facility with the beginning of the 2013-14 year.
"I was glad to see the percentage of spending per student is more than I thought it was," said Lennep. "I think there's always room for improvement, but I feel like the board has worked hard to keep a tight budget."
School Board President Clifton Magee said state budget cuts have hurt school districts unless they already have an abundance of money. "Anytime the state cuts, its affects your district.
"We are comfortable, but we can't stay like things are," he said. "Because, generally, if the state cuts the budget again, that's money we lose.
"Then we have to go back and cut. With reductions like that you keep cutting and cutting, you get to a point you can't cut anymore."