Monday, June 29, 2015

LMSD Board Holds Public Budget Hearing- Projects Expenditures at $30 Million

The Louisville Municipal School District Board of Trustees met on
Friday, June 26 for an annual budget hearing. A public budget hearing is required by state law to be held before August 15. The board was presented with revenue projections, expected expenditures and a breakdown of revenue sources and expenses.

The District is projecting revenue of $29,264,951. Exact projections are not possible due to changes and adjustments in ad valorem tax dollars. Roughly $7 million or 24% of total revenue is generated locally by ad valorem taxes (property taxes). The majority (75%) of operating revenue comes from the state and federal government, (51% state, 23% federal). A relatively small portion of the District’s revenue comes from 16th section land sources.

At the local level, 60.92 mils will be required to generate the necessary revenue. This millage rate includes mils for collection fees and a three mil rate for repayment of a 2009 loan. There is a “Cap” on allowed mils for direct expenditure at 55 mils. The district approaches that cap at 54.97 mils.

LMSD is projecting expenditures of $30,196,451. While expenditures exceed projected revenues, the difference is due to construction projects such as the one at the high school that are funded by existing revenues from 16th section funds. Teacher’s salary and benefits constitute roughly 70% of the district’s yearly expenditures.

Due to loss of tax base caused by the April 2014 tornado, individual taxpayers may see tax increases even though the District’s budgetary requirements remained similar to the previous year. The public can view the proposed budget by contacting the District’s Central Office on S. Columbus Ave. The Board of Trustees is expected to adopt this budget on July 9.