In Your Corner
by the Martin County Taxpayers Association
School District Funding
Approximately 89% of the Martin County School District's budget will
be collected from the ad valorem taxes paid by Martin County taxpayers and
distributed to the school district by the Martin County Tax Collector's Office.
The remaining 11% of the district's budget comes from the federal
and state taxes paid by us all. This compares to Dade County which received
25% of its school budget from state and federal sources and Palm Beach County
which receives 45%.
Collier and Monroe counties are the only other counties in Florida that
receive such low percentages of the state and federal funds. The reason
for this low allotment is that all three of these counties are property
rich, but lack a high
ratio of children per capita. Through a complex formula that places a specific
dollar value on each childís education, the state government has
devised a method of ensuring equal funding for every student in the state
of Florida.
Since the Martin County School District budget takes the biggest bite out
of our ad valorem taxes, the Martin County Taxpayers Association (MCTA)
has become involved in the manner in which the district spends these tax
dollars. The MCTA volunteers are attending school board meetings, sitting
in on various committees, and having regular meetings with the Superintendent
and School Board members.
The school district and its related expenses start in July and, by law,
ad valorem taxes cannot be collected until after November 1. This procedure
creates a period of time in which the school district is without funds.
Each year,
the district takes out a loan to meet payroll and regular operating expenses
until the actual funds are received. In fiscal year 1995-96, the loan amounted
to $17,500,000 at a rate of 4.25%. Tax bills were delayed due to computer
upgrades, which temporarily upset the collection schedule causing the school
district to borrow another $2,500,000 at a rate of 6%. These interest payments
are a direct cost, without services, to the taxpayer.
Martin County is not the only county which must borrow in this manner. Rep.
Tom Warner proposed a bill which would allow a school district to borrow
from trust funds during July through October of each fiscal year, thereby
avoiding interest payments. The Department of Education would withhold from
the school district's is Florida Education Finance Program allocation
amounts sufficient to repay the loan by June 30 of the year of the loan.
Rep. Warner estimated a total savings of over $4 million to the twenty different
counties that would benefit from this practice. Unfortunately, the bill
failed. The MCTA is paying close attention to the various methods being
proposed as a possible solution to this problem.
Another interesting fact is that the school district, by law, cannot show
a deficit. Therefore, it just keeps operating even though it may be in arrears.
It is our understanding that the Martin County School District is about
three months
behind, and the Martin County Taxpayers Association is working with the
district to close that gap.
Other interesting data:
The state lottery allocation for the 1996-97 Martin County School District
budget is $3,250,877, which is $10,551 less than in 1995-96.
Accolades go to Dr. Joyce Holmes for discovering a Florida State Statue
which allows our school district to bill other agencies for mandated programs
fulfilled by the school district such as, STOP, Boot Camp, etc. The resulting
savings are estimated to be over $150,000.
The Martin County Taxpayers Association has been involved in discussion
with the school district, insurance providers, and union representatives
attempting to find savings in insurance premiums. By increasing deductibles
for employees and other out-of-pocket expenses, the district may be able
to save as much as $500,000 next year. We are continuing to explore new
savings.
The school district has hired a new Transportation Director, H. Conway McGee,
who plans to computerize the routing and maintenance schedules of the 85
buses being utilized within the county. This plus other cost-saving ideas,
could result in a substantial savings in the transportation department.
We have enjoyed working with Noah Powers over the past two years and wish
him well in his new position. Martin County Taxpayers Association volunteers
serve on the committee which screened and interviewed new applicants for
the Executive Director of Operational Services position. We believe this
appointment has a very direct and vital impact on the daily operation of
the district and, in our opinion, this position requires strong leadership
qualities.
Volunteers are always wanted and welcome into this Association!
We encourage your comments, criticisms, ideas, or any questions about how your
taxes work; call 561-288-0474 or write to us at PO Box 741, Stuart, FL 34995 or
E-Mail us at admin@mctaxpayers.org.com or visit our WEB site, http://www.mctaxpayers.org.