C.R. school administrators to propose tax levy rate next month

Declining enrollment and a 2 percent increase in employee retirement contributions are two challenges the Cedar Rapids school district faces in setting the 2011-12 school year budget - that administrators know of.

The other challenges - allowable growth, wage and benefits settlements and categorical funding - are still unknown.

“We are operating right now under the assumption to plan for the worst but hope for the best,” said Steve Graham, the district's executive administrator of business services, during last night's school board meeting.

But even the best-case scenario - 2 percent allowable growth - means a decline in state funding.

A proposed levy rate will be presented to board members at the March 14 school board meeting. Once the proposed rate is published, board members can't approve a higher rate. They can, however, approve a lower one.

“It's all strategy,” Graham said.

The district's current levy rate is $15.17 per $1,000 of taxable valuation. Graham said the goal is to maintain a levy rate close to what the district has now.

Also last night, board members heard an update on the district's Educational Leadership & Support Center.

The district broke ground on its 169,000-square-foot facility in June. The facility will house all district support services - administration, transportation, buildings and grounds, warehouse and purchasing, printing and graphics, and food and nutrition. it will replace facilities that were damaged in the June 2008 flood.

Project sponsor Mike Gumm of Shive-Hattery told board members there were some early delays in the project. These delays are being assessed for possible long-term impacts on the project's schedule and cost.

The district must complete the facility by May 2012 to secure funding from the Federal Emergency Management Agency and the state.

The project has a $44.5 million price tag. This total includes contingency funding.