Superintendent talks about school finances

Local school finances are recovering from a county mix-up, but could possibly face lean times, depending on the state Legislature, according to Havre Public Schools Superintendent Andy Carlson.

Carlson spoke to about 20 people, nearly half of whom are school administrators, about the financial state of the Havre public districts, in the Triangle Communications Hospitality Room in a public forum Monday night.

The county situation, where county property owners were incorrectly taxed and had to be recharged, has been resolved and taken some pressure off, Carlson said.

"We were, about a month ago, wondering whether we could make payments, " Carlson said. "Now, the new taxes have come in, and I appreciate it."

Though the heat is off on that level, the state is a different story.

The superintendent talked about budget issues in districts across the state, citing a Missoulian article about the laying off of dozens of teachers and how Havre has avoided such a crisis.

"There are large deficits across the state, because of the way ARRA (American Recovery and Reinvestment Act) funds were distributed, " Carlson said. "Some districts used ARRA funds for personnel. We did not. We used it on the building in Highland Park, which stays in the district."

Two years ago, the state distributed federal ARRA — or stimulus — funds to school districts. Those funds have dried up.

Though Havre Public Schools escaped difficulty with responsible management of funds there, the district could still face problems, depending on the future of Senate Bill 403, which was defeated on a second reading last week. Its future is uncertain.

The bill, which would change the distribution of oil and gas production taxes among Montana school districts, has been criticized by some state legislators for the way it shifts funds around, and concerns about long-term effects on local taxpayers.

Carlson told meeting attendees "I don't believe that is being accurately characterized," and the alternative could be worse.

"In the worst case scenario, we would not be able to run our district, " Carlson said. "We'd be in the same situation as Missoula."

The problem for the district, according to Carlson, is that they have to set the amounts for mill levies by April 8. The state Legislature won't make most of it's decisions about budgets and financing until a few weeks later, by the time the session ends in the end of April. Then the mill levy elections are scheduled for May 3.

The district has to "balance running a levy vs. overburdening local taxpayers," the superintendent said at the meeting.

In the worst case scenario, Carlson said, the school would need to set a $300,000 levy for the elementary district and $233,550 for the high school, for a total of $533,550.

When asked how this would break down for a hypothetical owner of a $100,000 property, the superintendent and Clerk Zella Witter said this would cost about $30 additional for the elementary and $18 for the high school, for a $48 increase in local taxes.

"I don't believe we should run a mill levy of $500,000, " Carlson said. "The burden on taxpayers, on property taxes, is too much. We can't do that. We need the state Legislature."

"As soon as we hear from the Legislature, the first thing we'll do is start telling people that the Legislature came through, and we won't take any more than we need, " following the lead of the schools in Great Falls.