Anderson schools brace for $8.8 million budget shortfall, loss of 600 students

ANDERSON — Anderson Community School Corp. expects to lose about 600 students in the coming year and is bracing for the possibility of an $8.8 million budget shortfall in 2011.

During Tuesday’s school board meeting, ACS Business Manager Kevin Brown presented the board with a best- and worst-case scenario outline, stating that the best-case scenario would see ACS come out of 2011 with an $800,00 shortfall.

The best-case scenario assumes that the tax referendum posed to voters on the November ballot is passed, increasing the school district’s tax rate by 52 cents.

The loss of 600 students is expected to result in a $1.3 million drop in revenue for the school district.

If tax collections remain the same in 2010 and only 92 percent of the community’s property owners pay their taxes, the school will see another $2.2 million loss, Brown said.

Losses due to property tax caps account for another $7.8 million shortfall and reductions in state support disbursements will result in another $3 million loss, Brown’s proposal indicated.

According to Brown, ACS expects to see a drop of $4.5 million in revenue if the referendum passes, but will lose $3.5 million if it doesn’t.

According to the budget forecast, the worst-case scenario involves further budget shortfalls in the future.

The forecast includes a $14 million deficit in 2012 and the possibility of a $20.2 million deficit in 2013 if the referendum doesn’t pass.

If the referendum does pass, ACS expects to see a $2 million surplus in 2012 and a $3.8 million surplus in 2013.

In other board news:

ACS approved the callback of 19 laid-off teachers. During the previous school board meeting, 46 ACS teachers were recalled.