Superintendent proposes raises in Muscogee County School District

From layoffs to proposed raises, what a difference a year makes in the Muscogee County School District's budget cycle.

This time last year, the Muscogee County School District was awash in fear and rumor after the administration announced layoffs would be needed to help plug a projected shortfall of $10 million to $11 million.

Ultimately, by the time the Muscogee County School Board approved in June the fiscal year 2015 budget of $264,717,610 -- $5.9 million (2.2 percent) less than the fiscal year 2014 original budget -- the estimate of 69 layoffs was reduced to 42 because of retirements and resignations. And by the time the school year opened in August, that number was reduced to 29 because of more retirements and resignations.

Still, the cuts wounded morale.

But the mood was lifted during the board's called meeting Thursday night, when the administration presented its recommended fiscal year 2016 budget of $268,746,786 -- an increase of $4,029,176 (1.52 percent), including $2.7 million in raises.

After the meeting, MCSD chief human resources officer Kathy Tessin estimated 30-40 percent of the 3,900 full-time employees would receive some salary increase (part-timers won't) if the board passes the recommended budget. Three more meetings are scheduled to do that:

Monday, 5 p.m., called meeting to conduct the third and final public hearing on the millage rate. The administration has proposed keeping the rate at 23.37 mills for the 19th straight year. But it legally must be termed a tax increase because the district would benefit from an increase in the tax digest, projected to be 1.5 percent. That equates to $1.14 more in property taxes on a home with a fair market value of $100,000 and an increase of $2.58 for non-homestead property with a fair market value of $150,000. State law requires the board to roll back its millage rate an equivalent amount, which would be by 0.043 mills and cost the district about $99,000 in revenue. So the board must vote to "increase" the millage rate if it wants to keep it at the administration's recommended level. District 6 representative Mark Cantrell has called for the rollback, and John Thomas of District 2 and Frank Myers of District 8 have voiced support.

June 8, 5 p.m., monthly work session, vote on tentative adoption of budget and millage rate.

June 15, 6 p.m., monthly meeting, vote on final adoption of budget and millage rate.

Superintendent David Lewis and Tessin said the priority for raises was rewarding long-term employees, many of whom haven't had a raise in eight years, although, even during the Great Recession, MCSD has continued to award step increases for additional education and certification, Tessin said.

The administration proposes the following raises:

$1,200 one-time lump sum for all certified educators who have at least 22 years of experience. Teachers and administrators who would qualify total 437, amounting to $625,000.

Revised pay scale for bus drivers and skilled maintenance workers, totaling $678,200, an average increase of 4 percent for 269 employees. Culinary technicians were moved to a scaled system in 2011, so they won't receive raises this year.

Tiered salary increases for other classified and professional exempt employees with at least three years of MCSD service and a satisfactory evaluation, affecting 945 employees and amounting to $883,948.

15 minutes added to the work day for elementary school parapros, totaling approximately $500,000. The number of employees in this category wasn't available.

"This has been an arduous process," Lewis told the board. " I think everyone's concerted efforts have brought us a proposal that I think is fair. It's not everything we want, but it's what we can afford, and it certainly signifies a step in the right direction. We hope, with all things being equal, we can move forward next year with doing more."

District 4 representative Naomi Buckner said, "This is a very good start, to be inclusive of all the categories that needed some kind of help."

The proposed raises are the payoff of one of Lewis' key arguments he made for renewing the 1 percent Special Purpose Local Option Sales. Columbus voters in March passed the referendum to collect $192,185,000 for capital projects or until the tax, which returns July 1, expires in five years. Lewis emphasized during the campaign that SPLOST money can't be used for personnel, but he also stressed that having the SPLOST makes the district's financial situation more conducive to giving raises because less operating money would be needed for capital expenses.

"It's recognition that the board and the district are trying to recognize the hard work and efforts and the long time coming for the need of salary adjustments," Lewis told the Ledger-Enquirer. " The board still has to pass the budget, but being able to recommend something like this, we feel good about it, even though we have to dip into the reserve."

An improved economy is the main factor enabling the proposed raises. The district's state revenue is projected to increase by $6,587,475 (4.59 percent) to $150,137,807, and local revenue is projected to increase by $2,415,366 (2.24 percent) to $110,065,724.

Also making the proposed raises possible would be taking $5,026,335 from the reserve. Although that's about half the figure the administration originally projected, board chairman Rob Varner of District 5 expressed the only concern during the meeting when he asked what is being done to try to end that practice completely and lift the reserve fund back to the minimum of 60 days worth of operations that the Government Finance Officers Association suggests.

Lewis mentioned the following initiatives: a study examining the feasibility of using alternative fuels for buses; a citizens committee analyzing the utilization of facilities and possibly recommending closing some schools (which wouldn't happen this year); considering development of a virtual school that would generate revenue by attracting students who would pay for online courses; transitioning from paper to digital textbooks also will save money, he said.

MCSD's reserve fund hasn't been at 60 days since fiscal year 2013. The FY 2016 projected reserve is $29,227,667, equivalent to 40 days of operations.

This story was originally published May 28, 2015 at 9:34 PM with the headline "Superintendent proposes raises in Muscogee County School District."