CALLAHAN HOLDS BUDGET MEETING At a public meeting held to explain the Baldwin School Board's just-passed 2012 budget, District 6 School Board Member Bob Callahan predicted more money woes on the horizon. Callahan said he was giving his own interpretation and not speaking for the School Board or Superintendent Lee
Callahan called this year's budget (FY2012) flat compared to 2011, thanks to the temporary penny sales tax, BP fine money ($2 million), and higher than expected Spring/Summer sales tax revenue from Gulf beach tourism; considering the Federal Stimulus and Jobs Bill money received the last 2 years has practically dried up.
Callahan: "... its a status quo budget ... this year."
Thanks to the additional revenue, he predicted a $5.7 million surplus this year (reduced by $2 million if 2% proration is declared as is expected) with the (emergency) fund balance increasing to $16 million by year's end; but in April 2013 when the penny sales tax expires, he expects another $6 million budget shortfall.
Callahan: "... We'll have to pay for it (shortfall) out of the (emergency) fund balance ... at that time."
"The following year (2014), based on no change in the tax structure ... we're looking at a deficit of $18 million."
NEW TAX PROPOSAL COMING THIS SPRING?
Callahan said a new school funding proposal now being developed by the citizens group Yes We Can Baldwin County and School Board personnel should be ready to present to the County Commission for consideration by Spring 2012; then a voter referendum on it may follow. The proposal may include a renewal of the sales tax (at some level) and/or a property tax increase.
Callahan said in his opinion (not the Superintendent's or the Board's) the equivalent of 35 mils of ad valorem tax is needed to provide adequate school funding; but 28 mils has also been mentioned. The current ad valorem school tax is 12 mils.
Callahan: "That's the intent ... put something before the people (vote) ... see what happens."
CONSOLIDATION PREDICTED
Callahan said he expected (but was not 100% certain) Superintendent Lee will soon recommend consolidating younger students into K-6 schools countywide -- as "a better utilization of teaching units." Callahan said he was ok with that "if its not just done here in Fairhope."
He said salaries were 85% of this year's $257 million budget; and there are 800 more students this year over last: 4,000 more since 2005. Fairhope High School is nearing its designed capacity of 1500 students.
Health insurance and retirement premiums contributed by employees will rise this year; but again there will be no pay raises: a de facto pay cut, according to Callahan.
NOT SEEKING REELECTION
Fairhope-area resident Callalhan said he will not seek reelection when his term expires next year. He was first elected in 2002.
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