The Orangeburg Consolidated School District 5 board approved the first reading of its 2008-2009 budget Tuesday.
While the forecast is for a tax increase, the prospect of a balanced budget is within reach, Assistant Superintendent of Financial Services Donnie Boland said. “It’s truly a work in progress.”
Boland proposed a 5.5-mill increase that would generate an extra $622,000 in revenue. The increase would impact the property taxes of businesses, industries, second homes and rental properties but not owner-occupied residences.
The district’s lease-purchase and vehicle agreements were moved over to OCSD 5’s debt service fund, which will see an increase of 3 mills. The millage for debt service is set by the county and does apply to owner-occupied residences.
Orangeburg County Auditor Roger Cleckley said the dollar value of a mill is not available at this time because of property reassessments currently taking place.
Boland predicted the total revenues for the upcoming year to be at $57.3 million compared to $58.4 million in spending, leaving more than a $1 million shortfall.
He said the administration will work to close the gap and present the board with a balanced budget next month for second reading.
“It’s attainable,” he said.
Last year, the board approved a $60 million budget with a $4 million deficit, causing the district to dip into its reserve fund. Board Vice Chairman Melvin Crum voted against passing that budget but likes what he sees so far this year.
“I am fairly pleased at this point,” said Crum, who added he is not in favor of a tax increase.
In addition to bringing forth a balanced budget at the next reading, Crum directed the administration to clearly define the adjustments it will make.
Some highlights of the proposed budget include:
* Teacher’s salaries will increase by 3.35 percent. Other employees in the district will receive a 2 percent increase.
* Student enrollment in OCSD 5 is projected to drop for a second consecutive year, which will negatively impact its Education Finance Act funding from the state. EFA funding is based on the number of students matriculating in a given district. Boland projects the district will have approximately 201 less students than the previous year.
* A 20 percent cut in supplies and equipment will be designed to offset rising energy costs.
* Boland said the district may have received up to $1 million more in fee-in-lieu-of-tax collections than it originally budgeted for this year. Any excess revenue would apply to the coming’s year general operating fund.
* Projections show the district will have 47 less teachers than the 2007-2008 year. Boland said that since there is an expected decline in the numbers of both teachers and students, it should not have a substantial impact on teacher-to-student ratios next year.
The district will hold a public hearing on June 24 before passing the final version of its budget.
Following executive session, the board tapped Dr. Johnny Murdaugh Jr. to be the new director at the OCSD 5 Technology Center. Murdaugh was formerly a curriculum coordinator/administrator at the Technology Center and will replace Abbiegial Hugine, who is retiring.
In other business:
* Orangeburg-Wilkinson High School’s Gregory McCord gave the board an update on goals to increase academic achievement next year. He also discussed how O-W is helping eighth-graders make the transition from middle to high school.
* Guidance Coordinator Hazel Rickenbacker discussed the district’s electronic individual graduation plan for students. Each high school student is required to have an individual graduation plan by the state’s Education and Economic Development Act to prepare for the work force or college. Students in OCSD 5 can pick from 16 career clusters that have a total of 34 majors.
T&D Staff Writer Lee Tant can be reached at ltant@timesanddemocrat.com and 803-534-1060.