By Rupert Howell

A warning to trustees that the school district’s income will decrease and outgo will increase was followed by an executive session concerning possible litigation that may involve South Mississippi Electric Power Association (SMEPA), the owner of Batesville’s power plant.

School board President Sandra Darby recused herself from the closed door session stating that she did not need to be involved in actions against her employer. She is employed at the Batesville power producing facility.

The district received approximately $1.5 million less in ad valorem taxes after SMEPA purchased the plant in 2012. A rural power cooperative, that entity is not liable for county or school property taxes.

SMEPA purchased the plant in bankruptcy court and last year made a $2 million donation, with the lion’s share going to the school district to help offset a revenue shortfall caused by the change in ownership.

In February SMEPA CEO/General Manager Jim Compton told Panola supervisors that  he would not close the door on additional contributions such as the $2 million donated in 2013. But he added that $30 million budgeted in repairs and maintenance at the Batesville facility for the current year would not allow them to make a contribution this year.

Superintendent Tim Wilder told trustees earlier in Tuesday’s meeting that South Panola would receive from state funds approximately $288,000 to pay for teacher raises mandated by the Mississippi Legislature earlier this year.

Wilder and District Financial Director Suzanne Covington gave figures of $600,000 to $700,000 of actual cost due to those raises when the expense of fringe benefits was added leaving the district with an additional $450,000 to cover.

The district is also near the 65 mill cap on the amount of tax that can be levied for the school district operations.

While commending teachers and teacher assistants alike for working hard and helping make a difference with improved test scores, Wilder said he could not recommend salary increase for teacher assistants stating, “There will be no raises except for state mandated raises” adding, “I wish I could give them (teaching assistants) better news.”

Covington informed trustees of funding shortfall where taxes levied did not bring in revenue budgeted with the estimated amount at approximately $650,000. That amount will not be clearly known until after the actual budget process is complete.

The budget hearing has been set for Friday, June 20.