California’s new budget has tax hike
By CHRISTINE HAINES
chaines@yourmvi.com
The California Area School Board in a continued session Monday approved a $15.7 million budget for 2020-21 with a tax increase of .88 mills.
The increase is the maximum permitted under the state index, according to board president Barry Niccolai. The preliminary budget had a deficit of $1.1 million and the board had considered putting a referendum on the June 2 ballot to raise taxes above the state index.
“The board pulled that because they felt it was going to be too hard. A lot of people have lost their jobs due to COVID-19,” said Superintendent Dr. Laura Jacob.
The district is spending down its fund balance and will take out a tax anticipation note not to exceed $1 million in the event of a cash flow shortfall at any time during the school year, with the loan to be paid off on or before June 30, 2021.
Jacob said the district should end the 2020-21 school year with about $300,000 in its fund balance, including assigned and unassigned funds. Only the unassigned funds are available in the event an emergency repair is needed, Jacob said. The other funds are already committed to necessary projects in the district.
“We have to work on bringing that back up,” Jacob said. “It was a tough budget year, but we’re going to make sure we put the kids first and center. We had a lot of things we were up against.”
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