Pulaski board mulls ways to cut budget
By Joan Koehne, Northwoods MediaPULASKI — The Pulaski School Board at its meeting Wednesday considered more than 30 ways to reduce the tax levy for residents of the district.
Refinancing long-term debt and reducing the community service fund tax levy were two major proposals presented, as the board seeks to reduce its budget after voters at the district’s annual meeting defeated the proposed tax levy with a 77-30 vote. About 90 people attended the meeting.
“We had heard loud and clear that the 12.2 percent levy increase was not acceptable to many people, and for good reason,” said District Administrator Mel Lightner.
The board needs to trim the proposed tax levy of $14,482,134, and is scheduled to set the final tax levy at its Oct. 21 school board meeting.
The first proposal presented was refinancing the long-term debt, which would bring significant tax relief now to the taxpayers, but increases the total debt costs over time. Under this proposal, the higher interest rate bonds (at 4.5 or 5.5 percent) would be refinanced at a 3.34 percent interest rate, and a restructured repayment schedule would be implemented. Under the new schedule, less debt would be paid back between 2010 and 2012 and more from 2013 to 2015.
The change would result in an increase of the total debt cost by $169,142, but would lighten the debt burden over the next few years. If the board approves the refinancing option, the tax levy increase would be 6.6 percent over last year instead of 12.1 percent. Any additional changes the board made could reduce the tax levy even more.
Lightner also proposed the board could transfer a significant portion of the community service fund to the general fund.
Other proposals involved reducing staff positions, including not filling a vacant clerical aide position at the middle school and eliminating the high school attendance secretary’s two-hour a day position.
“Because 80 percent of the cost for our school district is personnel, salary and benefits, it’s hard to reduce the budget without cutting personnel,” Lightner said.
More in today's Leader.
