By Rupert Howell

A budget hearing for South Panola School District drew the attention of no one other than school officials and the trustee board last Friday when administrators proposed a budget that mirrored the current year’s budget.

But an interesting variable in funding may make a temporary increase necessary.

Like last year South Panola plans to raise approximately $10 million of a $30 million budget from local sources mostly in the form of ad valorem taxes, a figure that doesn’t include debt service for bond issues.

But the non-payment of taxes from LS Power Company which filed for Chapter 11 bankruptcy might cause Panola County to raise taxes through additional millage to pay at least a portion of the shortfall caused by non-payment.

School officials are optimistically thinking taxes in arrears will be paid when the facility is purchased by another entity through the bankruptcy court.

Superintendent Dr. Keith Shaffer gave examples of three scenarios that could possibly occur with the most optimistic being that taxes in arrears will be paid prior to October 1 when Panola County’s deadline for setting millage approaches.

Shaffer and school finance director Suzanne Covington ensured trustees that they had been working closely with Panola County Administrator Kelley Magee.

He told his trustee board that he will appear before supervisors in August to present the figures but said the county administrator will have figures well before then.

Local governmental entities are owed approximately $4.5 million in taxes by the local power producing company with the school district’s share of LS Power taxes in arrears approximately $1.8 million.

Panola County is owed a similar amount and the City of Batesville is owed approximately $800,000.
In an earlier meeting, Shaffer estimated that taxes in the amount of approximately $440,000 would need to be raised annually for three years of LS Power arrearage if not paid.

School trustees meet again today, Friday, June 29 to approve the budget.