receive more of sales tax

By BETH LAKEY

Staff Writer

They say the squeaky wheel gets the grease.

Ironically, the one who was the quietest on the sales tax issue is likely to reap more of the benefits.

Hank Jones, superintendent of the Troy City Schools, will probably get more money from the 1-cent sales tax recently levied by the Pike County Commission to help educational systems in Pike County.

"We’re appreciative of the county commission’s action," Jones said. "It will mean a boost in income for us."

Distribution of what is expected to be $2.36 million from the sales tax increase will be based on average daily attendance. Recent years have brought more people into the Troy City Schools, while the Pike County Schools’ enrollment has dropped.

But, the difference isn’t that much, Jones said.

School officials estimate the Troy schools will get just over 50 percent of the money generated by the sales tax increase that should go into effect Oct. 1. Paperwork to set that in motion was hand-delivered by County Administrator Mark Tyner to the Alabama Department of Revenue’s Sales and Use Tax Division on Thursday.

"Our numbers are really close but, I think our average daily membership is a little higher," Jones said.

Adding to the county commission’s action, the Troy City Council took action on Aug. 28 to do its share to help the local school system.

In response to action by the Pike County Commission, the council passed a resolution that will insure the city schools get at least $1 million.

Troy Mayor Jimmy Lunsford said he wanted the city to make up any difference if the sales tax does not generate at least $1 million for the city school system.

"I think we ought to be proactive," Lunsford said.

He said making sure the city schools get at least $1 million will help officials with their plans.

"Obviously, we are always pleased with the support the mayor and city council give us," Jones said. "We absolutely couldn’t survive without their support."

Jones said help from the commission and council will mean the school system can fund some capital projects and should also keep the system from having to dip into its reserve to balance this year’s budget.

The school system was expected to have to use funds in reserve because of proration’s impact on the system’s $14 million budget. The combined budget for revenues, expenditures and changes in fund balances indicated total revenues fro the fiscal year ending Sept. 30, 2002 will be $13.86 million.

Total expenditures are expected to be a little over $14.2 million.

A printout of the proposed annual budget has the beginning fund balance (Oct. 1, 2001) at $3.04 million. The ending fund balance (Sept. 30, 2002) is listed as $2.967 million.

The State Department of Education recommends having two-month’s operating expenses in reserve.