Jackson Free Press

Read an excerpt from the budget presentation (PDF, 800 KB)

Clarification: The headline for the print version of this article read, "Without Federal Funds, JPS Needs $2.5M." The headline should have indicated that JPS needs $2.5 million from the city of Jackson if the federal Medicaid extension does not pass. The district's overall budget hole is $6.2 million.

Uncertainty about $187 million in federal aid is forcing Jackson Public Schools into awkward contortions as the district prepares its budget for the upcoming school year. The district will likely request an additional $2.5 million from the Jackson City Council as a precaution, Executive Director for Finance Sharolyn Miller said at a JPS board meeting Friday.

State lawmakers and school district administrators have waited since April for Congress to pass a one-year extension of Medicaid assistance included in the 2008 economic stimulus package. An extension would free up $187 million for the state to spend on education, of which roughly $4 million would go to JPS. When Congress did not approve the extension before the end of this year's state legislative session, lawmakers passed two separate education budgets.

If Congress does not pass the Medicaid extension, House Bill 1622 would provide $120.5 million to JPS through the Mississippi Adequate Education Program, the state formula that levels funding for low-income school districts. If the extension passes, a different bill, House Bill 1059, would give JPS $124.2 million in MAEP funds.

"It was anticipated that that (larger) House bill would be funded by now, because Congress was taking it up pretty aggressively," Miller said. "Now they're telling us they probably won't take it up until October. We're being pretty conservative."

While city council can choose how to fund the district's $2.5 million request, it would probably elect to raise property taxes by two mils, Miller said. A mil represents a $1 tax per $1,000 of assessed value and generates roughly $1.142 million in revenue for the city. Miller said that the district's request could increase as it evaluates its 2011 budget.

At Friday's meeting, board member Otha Burton suggested that the district discuss its finances with Mayor Harvey Johnson Jr. before submitting its official tax request.

"Having been a former city employee, I think it'd be good to have a conversation with the city," Burton said. "To raise taxes is going to be difficult."

"It's going to be a hard sell," Burton added. "There's going to have to be a very good picture painted."

The request is only one of the district's efforts at raising funds and cutting expenses. At a June 3 meeting, board members agreed to cut four paid days from teachers' contracts and reduce paid days for other district staff by two. Superintendent Lonnie Edwards received a three-day cut.

The reductions save JPS $1.9 million in teacher salaries alone, Miller said. The district has also eliminated 125 teacher positions, mostly through attrition.

Still, the cost-saving measures are not enough to entirely ease the district's financial woes. JPS lost nearly $9.5 million over the 2009-2010 school year due to budget cuts. Even in the best-case scenario, with the additional federal Medicaid assistance, the district will receive $2.4 million less in total MAEP funds for 2011 than it did in 2010.

The district's expenses are also rising. With the full debt from its 2007 $150 million bond issue now on the books, the district's annual debt service payments are roughly $2.5 million, Miller said.

The district must submit its request for a tax increase to the council by Aug. 15, to give the city time to prepare the budget for its 2011 fiscal year, which starts Oct. 1. JPS board members will discuss the district's budget at a June 16 work session. Public hearings on the budget will follow June 21 and 29.