Putnam County schools warn of budget risks after state report, property valuation gap and bond-driven tax increase

Jonathan, finance staff for the Putnam County School District, told the school board during a budget workshop that preliminary figures from the legislature’s conference report would add limited, earmarked revenue but that a mismatch between the conference report and the property appraiser’s certified values could produce a substantial revenue shortfall.

Why it matters: the district’s preliminary calculations show the conference report adds new categorical and salary dollars but that a roughly $733,599,082 difference between the conference report value (about $9.12 billion) and the property appraiser’s roll (about $8.39 billion) could reduce local tax revenue and lower some state allocations, Jonathan said. He cautioned the numbers can still change when tax rolls and the FEFP are finalized in July.

The conference report increases shown to the board include categorical allocations and teacher salary money already earmarked in state funding: a mental-health categorical at $694,809, Safe Schools at $1,180,148 and a teacher salary allocation (TSIA) totaling $4,371,530 (an increase of $389,380). Jonathan said the district’s preliminary “new money” that is not already earmarked was about $713,215 but that increases in district costs — especially retirement rate changes — would reduce that to roughly $513,000 in net new, flexible funds.

“This increase translate[s] to a $224,987.12 increase in retirement for our regular class employees,” Jonathan said, referencing a rise in the regular-class retirement rate to 14.03 percent. He also noted other retirement-rate decreases that partially offset the total impact.

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