DeSoto County School Board approves 9.97-mill decrease, requests $119,827,994 in operational levy

At its Aug. 7 meeting the DeSoto County School Board voted to request $119,827,994 in operational tax revenue, approving a 9.97-mill decrease in the district's proposed levy. The board adopted the option after presentations from district staff and a county tax official that described a $4 million shortfall in state funding and other budget pressures that lawmakers and assessors attribute to recent changes in the state funding formula and valuation rules. Jeff Fish, a county tax official who addressed the board, said the county has relied on "a minimum of 3% new growth" to sustain revenues and that recent changes in valuations and Department of Revenue requirements made calculations difficult. "So even though your budget may stay flat or even a little negative, they're still gonna get a small tax increase," Fish said. "And it's unavoidable." Board members and staff told the board the district received about $221 million in state funds this year, about $1.8 million more than last year but roughly $4 million less than the district expected based on a formula spreadsheet shown last year. District staff said some of that shortfall will increase local budget pressure when combined with recurring local costs, including the local teacher supplement, school resource officers and school nurses. Finance staff described local spending the district covers outside of the state's base salary schedule: the packet noted local teacher supplements that start at roughly $7,700 for beginning teachers and rise to about $8,500 for more senior teachers; board materials and presenters said those local supplements represent a recurring local expenditure. Presenters also said the district pays approximately $70,000 per school resource officer and currently funds 59 officers, representing roughly $4 million annually for those positions. Board members were shown three millage options prepared by the finance team. The option the board approved, labeled in materials as the 9.97-mill decrease, was presented by staff as likely to increase the district's use of fund balance by about $6.8 million this year compared with a less-aggressive option. Board member Russellton recommended that option before a motion was made and seconded; the motion passed on a voice vote with "Aye" from the board. Board members and staff said the decision reflects trade-offs between limiting immediate tax-rate reductions and preserving operational funding for salaries and services. The board scheduled its next regular meeting for Aug. 21 at 10 a.m.