SCC School district seeks tax increase

The financially-strapped Scott County Central School District is asking voters in the April 3 election to approve a 95-cent increase in its operating tax levy.

Supt. Howard Benyon, who took charge of the district last summer, said, "It is a considerable increase."

But he said Tuesday the small school system, located south of Morley, Missouri, needs additional revenue.

The money would help offset state funding reductions, continue existing programs, retain staff, maintain its facilities and meet operating expenses, according to the ballot measure.

Increasing the property tax levy from $3.6593 to $4.6093 per $100 assessed valuation would generate an estimated $739,000 over the next five years, Benyon said.

The district, with an enrollment of about 285 students in kindergarten through 12th grade on one campus, operates on a $3 million a year budget, Benyon said.

But that leaves little in reserve, he said.

Last fiscal year, the district's expenses exceeded its revenue, he said.

The district's fund balance currently is equal to just more than 1 percent of operating expenses, down from 4.3 percent last school year, according to Benyon.

The average for school districts statewide is about 35 percent, he said.

Missouri's Department of Elementary and Secondary Education considers the district to be "financially stressed," Benyon said.

He compared the district's fund balance to having $58,000 in a checking account when it should have operating capital of $700,000, which would equal about three months of expenses.

Its finances currently don't allow it to borrow money for needed projects, he said.

If voters approve the tax measure -- a simple majority is needed for passage -- the district fund balance percentage is expected to rise to 20 to 25 percent within five years, he said.

The district already has taken steps to improve its financial situation.

But local tax revenue is limited. "Part of our problem is we don't have a lot of industry here," Benyon said.

In addition, decreasing enrollment has led to a decline in state aid for the district, he said.

Benyon said this marks the second time in 10 years the state has listed the district as financially stressed.

In recent years, the district has eliminated more than a dozen teaching and non-teaching positions to reduce operating costs. The move has saved about $340,000 in salaries, Benyon said.

The district also has replaced old, inefficient lights with cost-effective LED lighting that will pay for itself over the next eight years, the superintendent said.

"We are doing our part," he said. "We are running bare bones."

But the district needs, among other things, added funding for new computer technology and better textbooks for its students.

It also will have to put a new roof on the high school within the next two years, which is expected to cost about $500,000, Benyon said.

"Our students are our number one priority," he said.

Benyon said school officials have held several public meetings to discuss the ballot issue. Another is scheduled for 7 p.m. Monday at the high school.

mbliss@semissourian.com

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