School board to discuss facilities, budget tonight

The Madison County School System is exploring ways it can cut at least $2.5 million from next year’s budget in anticipation of a $2.5-$2.9 shortfall in revenue in 2009-2010.

Superintendent Mitch McGhee will discuss a possible “reduction in force” (RIF) plan with the school board Monday, should the system be forced to cut positions next year.

The state is eliminating funding for 15 teaching spots in Madison County next year, though the system hopes to avoid layoffs by sliding existing personnel into positions vacated by retirement or resignation.

McGhee also has heard reduction plans from the school system’s seven principals and will share those cost-cutting proposals with the school board.

The superintendent has asked each principal to reduce $102,000 in expenses next year as part of the $2.5 million budget reduction package.

As for the facilities upgrade, the school system has pondered sales tax funded improvements to the high school in some capacity. Last month, the BOE received a list from MCHS officials of possible improvements to that campus, including the addition of a two-story wing that would include 22 classrooms and a new media center.

The BOE must now decide how it wants to approach that project, though McGhee indicated it will likely be delayed.

This will be the school board’s third meeting in as many weeks.

The BOE met Tuesday to pass a resolution for a Tax Anticipation Note (TAN), after approving a TAN bid with Merchants and Farmers Bank last week.

The school system can borrow up to $3 million to cover operating expenses until tax revenue rolls in.

The system will pay a 1.94 percent interest rate for whatever it borrows out of that line of credit.

The county sent property tax bills out late again this year. Without tax collections, the schools have gone without a major source of revenue.

The system has operated on its bank reserves, which are now depleted.

Although the school system has reserves showing in its annual budget, that dollar figure is “paper money,” based on the tax revenue the schools have yet to receive.

The school system doesn’t expect this loan to be on the books long, however.

“March or April, one of those two (months), we’ll get a big tax check,” McGhee said. “And when we get that big tax check, we’ll pay it off immediately.”

ALL PRINCIPALS OFFERED CONTRACTS

Each of Madison County’s seven schools principals have been offered contracts for 2009-2010.

The BOE approved the action at a called meeting Tuesday night.

Madison County’s principals include Tommy Craft (Madison County High School), Matt Boggs (Madison County Middle School), Billy Heaton (Colbert Elementary), Christine Register (Comer Elementary), Angie Waggoner (Danielsville Elementary), Cathy Gruetter (Hull-Sanford Elementary) and Lynne Jeffers (Ila Elementary).