Tax cut, extra school money in NK’s future?

New Kent County school employees and taxpayers could use a little good news in a time of economic troubles. Yesterday, they got some.

Revenue appears to be outpacing expenses by almost $2.3 million, based on preliminary figures County Administrator Cabell Lawton presented to Board of Supervisors members during Thursday’s work session.

Thus, an additional $1.1 million allocation for county schools tops a list of Lawton’s recommendations on how supervisors can use the money. Also on the list is erasing some of the county’s debt along with an item of keen interest to taxpayers — reducing the county’s real estate tax rate.

Lawton and the county’s finance team have built their preliminary projections on a real estate tax rate of 68 cents per $100 of assessed value. That’s the equalized rate as a result of last year’s property reassessment. The current levy is 73 cents.

One cent on the county’s tax scale equals $269,000, thus supervisors could opt to reduce next year’s rate by a penny or more. Supervisors instructed Lawton and his team to draft a balanced budget that is to be ready for the board’s perusal during its April 12 meeting. After that, work sessions are to be scheduled in preparation for a public hearing, probably in early May.

Supervisors quizzed school superintendent Rick Richardson, who sat in on yesterday’s work session, concerning effect an extra $1.1 million would have on schools’ next year budget that includes job cuts totaling 23.5 employees.

“If that figure were in there, the $1.1 million would effectively allow up to take all of those cuts out,” the superintendent replied.

Walking out at the conclusion of yesterday’s work session, Richardson flashed a broad smile.

“Elated, delighted, exuberant,” he said in reaction to the news, adding that if the recommended total becomes available, a 2 percent across the board pay cut for school employees can also be avoided.

“This is very, very welcome news in terms of our ability to restore budget cuts,” he said. “We recognize the commitment supervisors are making with this, and I think it reflects a strong partnership between the Board of Supervisors and the schools.”

Lawton’s preliminary budget work reflects supervisors’ wishes imparted during the board’s retreat in February. Supervisors directed the administrator to build a budget on the equivalent tax rate or lower, refrain from raising other taxes and fees (other than utilities), protect funding for schools, and have revenue exceed expenses by $1 million.

Earlier this week, the county’s School Board adopted a $23.9 million budget based on level funding ($9.4 million) equal to the current year’s contribution from the county. If supervisors approve Lawton’s recommendation, money for schools would total almost $10.5 million.

“On schools, our wonderful General Assembly didn’t help us,” supervisors’ chairman Marty Sparks said. “We can’t make it all up, but we can try to help.”

Lawton, meanwhile, said supervisors apparently have some wiggle room when considering a tax cut below the equalized 68-cent rate.

But he added, “I’d caution you not to cut too deeply because next year might be worse.”