APS budget gap smaller than first thought

Some raises to be paid after all, Fulton officials tell district.

Improving revenue projections prompted Atlanta Public Schools to notify teachers that they will get pay raises this year after all.

The announcement came after the school district determined that the anticipated revenue shortfall stemming from Fulton County commissioners’ decision to mostly freeze property values will be significantly less than the $12 to $18 million the district initially estimated.

The final tax digests from Fulton and DeKalb counties show the district now needs to cut closer to $4 million.

Chief financial officer Lisa Bracken presented recommended budget adjustments to the school board Tuesday. The board had not voted by press time.

Under the district’s most-recent plan, teachers would receive a roughly 1.5 percent raise that they had been told earlier the district couldn’t afford.

District officials said APS does not have money to give all employees a raise. Instead, officials proposed a one-time $500 payment to other full-time employees hired before Oct. 1.

The district planned to reduce funding to some central administration programs and new initiatives to make up the rest of the $4 million hole.

The board also was scheduled to vote Tuesday on borrowing up to $100 million — to be repaid by the end of December — through a tax anticipation note. Officials said the loan was necessitated by cash flow problems related to the Fulton County situation.

“This isn’t easy for APS to decide to do, but it is important that we take care of our schools and our programs and our staff,” Superintendent Meria Carstarphen told the board.

She estimated it could cost $150,000 to borrow the money. That amount is based on costs associated with a loan the district took out last year, Bracken said.

Carstarphen previously said APS based its budget on a 6 percent increase in Fulton County assessed values — a projection that she said aligned with information provided by a county official. Instead, Fulton County froze many property values. District officials said APS plans to keep the same millage rate — 21.74 mills — as last year. The board is scheduled to adopt the millage rate on Sept. 21.