Clover district cites state funding shift, eyes 17–18 mill operating increase to cover teacher raises and new-school costs

Clover School District officials said Thursday they expect a roughly $5.808 million funding gap for next year and are considering an operating millage increase of about 17 to 18 mills to cover teacher raises, growth positions and capital needs as the district prepares to open three new schools.

District presenters told the board the shortfall stems from both lower-than-expected state allocations for teacher salary increases and a change in the state formula that shifted dollars between traditional public schools and charter schools. The presenters said the Legislature allocated about $112,000,000 for statewide teacher salary increases; under the district—s account of the initial allocation, charters with roughly 57,000 students received about $51,000,000 while traditional districts with about 700,000 students received about $61,000,000. A later proposed change to the allocation would reduce charter school funding to about $32.7 million and increase traditional public school funding to about $79,000,000, presenters said. The district said that shift, plus weighting changes enacted via proviso, reduced the district—s anticipated state revenue and contributed to the shortfall.

Superintendent Sheila said the state-mandated teacher supplement ($1,500 this year) is being applied through a formula that uses statewide averages and multiple weightings, and that the new formula makes local revenue forecasting less certain than in past years. "It's a wonderful benefit if we just wish it were fully funded," Sheila said of the 12 weeks of parental leave for teachers, adding that the district wants the benefits but must identify local funding to make them recurring.

Board materials presented three main budget drivers: growth (new schools and additional school-by-school positions), step increases/COLA and the teacher salary supplement. The superintendent—s summary said those items total approximately $5,808,000. District staff said an operating mill in Clover is worth about $285,000 and the district currently has 37.6 mills in place; using those figures, staff estimated the district would need an additional roughly 17 to 18 mills to cover the gap, though the exact final millage would be confirmed after staff compiles revenue projections.

District staff reminded the board that using fund balance to cover recurring costs is not prudent. Presenters explained the fund balance is used for cashflow between July 1 and the fall tax collections, for emergencies such as equipment failures and to preserve favorable bond ratings; they cautioned that one-time funds should not be used for ongoing obligations like salary increases.

On capital needs, the board was told the district anticipates replacing high school chillers (estimated at about $1 million) and plans to acquire six used activity buses this year and six next year to support operations as three new schools open. Staff said lead times for chillers may be up to a year.

The superintendent said the district has been phasing staffing and funding to avoid a large sudden tax increase when the new schools open. She recalled that the prior year—s packages, including moving base teacher salary targets, required about $8 million funded at a millage increase of about 15 mills. Staff said a portion of last year—s increase came from higher state funding that the district did not receive in the current year.

Next steps: the board was told a public hearing on the preliminary budget will be held at the board—s next meeting, when staff member Ken will present revenue estimates and a proposed final millage. The superintendent said she will provide requested follow-up materials in the district hotline and at the next meeting to help board members decide on a final millage vote.

The meeting adjourned after the superintendent concluded her report and a motion to end the work session was made and seconded.