Nell Holcomb faces tough choices if tax vote fails

The Nell Holcomb School District has made cuts to supplies over the past several years because of budget constraints, but officials said Tuesday those cuts soon could include personnel and programs if voters don't approve a tax rollback waiver during the April 7 election.

The measure -- Proposition 2 -- would eliminate the mandated Proposition C rollback.

Enacted in 1982, Proposition C is a 1-cent, statewide sales tax for education with a corresponding property tax reduction for school districts. Revenue generated by Proposition C was intended to roll back, or reduce, property taxes by an amount equal to one-half the amount each school district receives via the sales tax revenue at the state level.

The amount of rollback on average for the past 10 years at Nell Holcomb has been about 10 percent of the total tax, which equals $120,000 to $150,000, depending on the year, officials said.

Superintendent Darryl Pannier said Tuesday the district is asking to keep those funds and not roll them back to voters "because the economic storm is longer than what we thought we would have to weather."

The district hosted a town-hall meeting in February to discuss the proposition, and a second is scheduled for 7 p.m. Monday at the Nell Holcomb library.

Pannier said the district has made cuts to supplies or materials, and some personnel who soon are retiring won't be replaced.

"For us, it's been a perfect storm and not in a good way," he said. "Revenues have either stayed level or dropped, and expenses have gone up."

Based on the 2014-2015 local school levy, the waiver could have generated about $150,000 more tax revenue during the school year if there had been a full waiver voted on by the school board and the tax rate was set at $3.60.

Officials said with the passage of Proposition 2, the district still would have the lowest tax rate of the five school districts in Cape Girardeau County, at $3.60 per $100 of assessed valuation.

The current rate is $3.2581.

For the owner of a $150,000 home, the 35-cent levy increase per $100 of assessed valuation would equate to an annual increase of $99.75 in residential property taxes, according to the district.

"We have wonderful, strong programs now," said principal Mary Boeller. "If this proposition does not pass, we're going to have to cut those programs, and ultimately it's going to affect our kids. That's what's horrible."

Boeller, who has been with the district for more than 20 years, said the possibility of cutting staff is her biggest fear.

"We've always been a strong district, and it's now time that we need to ask for help," she said. "If we don't get that help, then the students are going to be the ones who suffer."

There has been a 15 percent decrease in enrollment at the district in its kindergarten through eighth-grade population. The school had about 325 students in the fall of 2006, compared to 275 students last fall.

District officials estimate the loss of 50 students has cost the district $500,000 in revenue during the past several years because the state provides a set amount per student.

Pannier said there isn't much industry in the area, and while couples are building houses within the district, they are not families with children, but people who are retiring.

"We're not in a position at this point and time that the doors are going to close," he said. "But we can't continue without help down the road."

Pannier said the district is "trimming the fat first," with the meat being people.

"We've trimmed as much fat as we can," he said, adding four people are retiring and only 2.5 of those positions are being filled, with one person working part time.

"We're at the point now where if this doesn't pass, we're going to have to get into more heavy cuts," he said.

klamb@semissourian.com

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