Bibb school board seeks private loan for expenses, brings back structured raises for staff

Editor’s note: This story has been updated to reflect that board president Daryl Morton did not vote in favor of the staff salary step increases on a second vote.

The Bibb County Board of Education is seeking out a private loan to cover monthly expenses in anticipation of a lack of cash flow through October, and will also bring back scheduled salary increases after taking them off the budget in June. 

The board unanimously authorized district financial staff to begin the process of obtaining a tax anticipation note (TAN), or a loan to cover expenses while it waits for tax disbursements.

CFO Eric Bush said the TAN arises from a “cash flow mismatch.”

The Bibb County School District spends upwards of $30 million a month, but funds available to the district could dip as low as $15 million in October, according to the district’s presentation.

Bush told board members the fund balance will need to remain above $35 million to ensure the district can safely meet all of its spending obligations.

The note, if approved next month, would allow the district to take out at most $35 million in loans to be paid out by the end of the year and would incur $400,000 to $500,000 in interest.

The move to keep the fund balance well-fed comes as the school district faces added costs from state mandates and dwindling enrollment.

“Other districts [use a TAN] regularly,” Bush said. The loan will be sought from a private source. 

But Bush said it’s likely the district will have to acquire another tax anticipation note next year if it continues to operate at a deficit or without any property tax increase.

Board members tacked more back onto that deficit when they voted 7-1 to reinstate $1.7 million in step increases for all staff members, with board president Daryl Morton as the lone nay, walking back a cut made in an earlier budget meeting. 

Board member Myrtice Johnson asked the board to reconsider the structured salary bumps to recognize teachers working on the front line. The salary increases reward teachers and staff who stay in the district. 

Johnson had originally voted to maintain the step increases for teachers in June, but the board was deadlocked in a 4-4 split before doing away with the salary bumps to reduce the deficit.

Based on the latest tax digest, maintaining the millage rate, effectively raising taxes, could bring in $9 million in additional tax revenue, Bush told The Melody. 

“The taxpayers should be a little more open to funding this school system,” Johnson said. “Nobody wants to raise the taxes but sometimes it’s a necessary evil.”

Board president Daryl Morton told board members that money is not “found money” and he can’t support the step increase if it ultimately means raising taxes.

“I would like to see us look and see if we could find that money somewhere else,” Board member Barney Hester said. “I certainly think the teachers need it.”

The board approved a slew of contracts including ones with Gordon Food Service to supply meals and Atrium Health Navicent for staffing and supplying nurse’s offices. 

The district will also join an ongoing lawsuit against Meta, TikTok, Snapchat and Google. School districts nationwide have joined the lawsuit and argue the cluster of corporations intentionally addict teenagers to their products, which negatively impacts their mental health.

Now the Bibb County School District will seek financial compensation for what it believes are damages caused by social media addiction.

The board will also meet within the next two weeks to discuss potential school closures.