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FSCC holds line; In a special meeting Wednesday, trustees approve keeping mill levy steady
Fort Scott Community College's Board of Trustees decided to keep the local mill levy flat during a special budget hearing on campus Wednesday night.
About 20 community members, including Fort Scott Mayor Jim Adams, attended last night's hearing to determine the amount of local taxes to be levied for the 2012-2013 school year. The board and college administrators spent about an hour breaking down FSCC's projected budget for audience members.
FSCC officials initially recommended a .637 mill increase for the 2012-2013 budget, but reduced that figure to about half a mill prior to Monday night's budget hearing. A recent $1.5 million county miscalculation in assessed property valuation for 2012 left the county's five taxing entities scrambling to re-work their budgets.
Administrators laid out two options for board members on Wednesday -- both of which included an increase to the levied amount -- explaining to trustees and those attending -- that the increases were necessary for the college to continue to operate successfully and efficiently.
College administrators said they are faced with operating increases in every area, including a 12 percent bump in health insurance and a 33 percent hike in worker's compensation premiums.
In response, community members stressed the rising cost of living and the number of county residents living on a fixed income.
Local businessman Jim Smith said he attended the hearing, not only as a concerned citizen but as a resident concerned about those who are financially less fortunate than him, like his father-in-law.
"I'm not here for me," Smith said. "I'm 63 and I never thought I would be alive to see times like they are now."
He said it would be a disservice to raise taxes on people now and suggested placing some of the burden on the college's other revenue sources -- tuition and the federal government.
"Something has to be done; it's going to be worse in the future," Smith said. "You have to take a look at personal responsibility. You (students) want an education; it's something that's important, but it doesn't have to be put on the backs of the people out here."
The college's local mill levy remained flat from 2004-2011, something that both trustees and administrators say has led to the current situation.
"Expenses go up; revenues go flat," FSCC President Clayton Tatro said. "At some point something is going to bend."
Tatro said the community needs to look at its contribution to the college as an investment, not a penalty.
"If there is value in education we have to fund it," Tatro said. "How do we expect to grow our economy if we don't educate our workforce?
"The reality is, if we are going to invest in the future, we need to invest in education," he said.
After considering public comments and statements from administrators, the panel chose to keep the local mill levy flat at 25.357 mills, with $2,321,179.78 in taxes levied for the 2012-2013 school year. The college raised the local mill levy last year more than 2 mills.
The college's administrators sat quietly, looking almost defeated, following the panel's decision and the audience reaction.
Dean of Finance and Operations Karla Farmer said the college already runs on a very narrow margin.
"Unfortunately, certain services will be cut," Farmer said. "Those of us who answer everyday to requests that can't be met because of the current budget, it will compound that."
The ones who will face most of the burden, Famer said, will be the students but officials will do their best to make it as "painless as possible.
"I respect the decision of the board and we will operate within the prescribed budget," she said. "But everything has a cost."
From both Monday and Wednesday night's budget hearing, the six-member board cut nearly $80,000 from the college's total projected budget of about $12 million in total revenue and expenses.
Trustee Jim Fewins said he understands what the administration is tasked with.
"They work pretty hard to get this down and they've kept it stagnant," he said after the hearing. "I want the crowd to understand that we are really looking at this; (we) have looked over this and we are giving up certain things."
While the audience only represented a small percentage of Bourbon County residents, Fewins said trustees don't "bow down" to those citizens but consider their opinions.
Fewins said he felt pressure to not raise the mill levy after the Fort Scott City Commissioners voted to keep the city's mill levy flat at a special meeting Wednesday afternoon. Commissioners voted to cut $75,000 from the general fund instead.
"If we can get through another year ... but it's going to be tough," Fewins said.
Audience members cheered and applauded the board following its decision.
Gerald Kerr, of Bourbon County, said what the college board did is a "very good thing" because it listened to the people.
"And we're grateful," Kerr said. "I want to thank you all. We're in hard times and the city, the community, the college and the people that work in the city with businesses need to work together. We have to be prudent."