By Dane Anderson, Staff Writer

Eanes business services head Larry Keiser presented school board members with certified property appraisal values and the latest version of a proposed 2009-2010 budget at a meeting Wednesday. During the budget process, board members approved a $1.25 million staff pay increase for the coming school year.

The budget included a proposed 2009 property tax rate of $1.2025 per $100 assessed value, $1.04 for maintenance and operations and $0.1625 for debt service. That is the same tax rate approved by the board last year.

The budget proposal reflects total expenditures for the 2000-20010 school year at $120,367,825 and total revenues at $115,762,440, creating a projected deficit to the district of $4.605, which administrators plan to pull from the district’s $32.9 million fund balance.

District Superintendent Nola Wellman reminded board members that heavy reliance on the fund balance projected for the upcoming years would deplete the general fund and translate into staff cuts in the future. Smaller staff means fewer programs, Wellman said.

 “We are looking at some very difficult decisions about some excellent programs we’ve been able to offer,” she said.

Wellman responded to questions from board members, confirming projections that the fund balance would be depleted prior to the 2013-2014 school year unless there is a change in public education funding by the state.

The proposed budget for the coming school year includes a new $1.25 million pay raise package for district employees that provides teachers with a $600 step increase and an additional $800 raise, both increases mandated by the state. The school board also authorized a 2.5 percent midpoint pay raise for other employees, including administrators and clerical and auxiliary staff. The teacher pay raise will cost the district $810,000. The pay increase for other staff will cost $440,000.

Certified property values in the district rose slightly in 2009, appraising at $10.829 compared to $10.616 in 2008.

“The reality of the state budget and what is going to happen to education is going to be very, very ugly,” said board member Ellen Balthazar. “Frankly, stimulus money is keeping Texas education alive.”

Wellman said program cuts would have to be put on the table well in advance of the disappearance of the district’s rainy day fund.

“We will have to watch our expenditures for 20099-2010 very, very carefully,” she said. “We may need to do some trimming of programs by 2010-11. Then I think we are looking at meat and bone.”

Board member Clint Sayers said the district had been through similar tough times during the last decade and cautioned careful examination of cuts into district programs.

“I hope the cuts that we start with are not programs or curriculum,” Sayers said. The first cuts need to be the furthest from the kids. If that means cuts into administration and doubling up on the work, then that’s what it has to be. We’ve been through this before.”

A final version of the 2009-2010 budget will be presented to board members and the community in a public hearing held during open session on Aug. 26. School board members are expected to vote on the budget for the coming school year at that time.