Dysart budget planners dodge tax rate hike

Officials with the Dysart Unified School District have proposed a budget for the 2007-2008 school year that holds the line on expendatures requiring no tax increase.

The district has anticipated a 2 percent budget increase which the state legislature included in the budget it passed last week.

During the budget process, district officials met with teachers, support staff and administrators, as well as the community through public presentations at several board meetings.

A public hearing on the proposed budget and will take place at 6 p.m. today at the Dysart Education Center, 15802 N. Parkview Place.

The budget process focused on two major goals: developing a balanced budget and developing a contingency plan to manage any fluctuation in student growth due to the changes in the housing market.

The overall tax rate for Dysart is projected at the same rate as last year. There was a slight shift between the primary tax rate and the secondary tax rate.

The 2007-2008 budget included several highlights:

• A 2.5 percent salary increase for teachers (2.25 percent going directly to all teachers while .25 percent was used for increases in specific areas).

• A 2.5 percent salary increase for all other employees.

• New positions at schools for anticipated student growth.

• Additional district support positions including areas in special education and transportation.

• New staffing models to address schools of different sizes.

• An additional increase in teacher pay through the Classroom Site Fund (Prop 301).

• Contingency plans in the event growth is less than projected.

In addition to developing the budget, the district must project a tax rate for the following year. While the rate is ultimately established in August by the Maricopa County Board of Supervisors, the district is required to project the tax rate and publicize this projection.

In recent years it has been necessary for the district to fund projects known as Adjacent Ways projects and address utility cost increases through a funding mechanism called Excess Utilities.

Adjacent Ways projects are necessary whenever the district is constructing or renovating schools. The projects include street improvements and the completion of water/sewer lines for a new building. Often these funds help develop local infrastructure.

This year the Adjacent Ways projects equal $12 million and include such projects as High School No. 4, the incoming K-8 schools (Riverview and Desert Moon), and the complete renovation of Luke Elementary. This funding must be used for projects as needed. As a result, Adjacent Ways projects use "pay as you go" funding and no debt is created.

In addition to the funds needed for construction, the district has developed a budget with $1.5 million in Excess Utilities. This funding mechanism was created by the state legislature to allow the district to raise local taxes to address the increasing cost of utilities.

This year’s primary tax rate increase of $9.80 per $100,000 in a home’s value is offset by the decrease in secondary taxes.

An additional factor in the district’s tax rate is a legal settlement between Arizona and the Qwest Corporation. This settlement is the result of a lawsuit filed against the state by Qwest, alleging Qwest’s property has been overvalued and thus over taxed. The settlement resulted in all taxing agencies, such as school districts, paying a specified amount to Qwest. The district was required by the state to place the amount owed to Qwest in its budget. Because of its location in the district’s budget, the amount affected the primary tax rate, resulting in local taxpayers paying for the settlement with Qwest.