A portion of a school district’s budget is made up of local ad valorem tax dollars (property taxes). This is often referred to as the local contribution. Years ago, the Mississippi Legislature decided to offset a portion of the local ad valorem tax with state dollars. The total state appropriation for Fiscal Year 2011 (2010-2011 school year) should have been about $46-million. However, in 2010, the State Legislature cut that appropriation by $38-million, leaving an $8-million statewide appropriation for the current year. In the 2011 Legislative Session, the ad valorem tax reduction line item was cut by an additional $6-million, leaving a $2-million statewide appropriation. This action shifted more of the burden for funding schools to the local level. School districts will either have to raise local taxes or absorb the additional budget cut.
