LINN — Linn R-2 Superintendent Bob James told board members on Thursday that because the tax levy increase attempt failed on April 8, he will not recommend anything beyond the step increase already approved by the board.

He added that future considerations would come into play once the legislature completes the budget process. “The House Appropriations Committee voted to have full funding for next year at the Senate Bill 727 level, which is what was promised to help us get to the $40,000 minimum,” James said. “It still has to make it through the Senate and across the governor’s desk. We’ll have our first look at that, and I’ll probably be updating you guys individually between now and May. Then I’ll have a budget for you, but I am going to tell you that despite the progress we’re making, we’re not going to have the state budget until June, when it gets passed. While we’ve made some progress with the county, that is not a check that we should be cashing now. So we will run a very level, balanced budget, maybe trimming a little bit here and there — not in terms of people right now.”

James noted that he and county officials worked together to straighten out the district’s assessed valuation.

Last fall, the district’s AV was listed at $83,499,222, but that was later proven to be inaccurate. An error in the county clerk’s office showed a $2.2 million reduction in personal property taxes.

In February, the county sent James the incorrect assessed valuation. “I collaborated with the other Osage County schools, and that looked odd,” said James, noting that after consulting with the county, the district’s assessed valuation went to $86,267,000. “That’s good for us. We’re moving in the right direction.”

Prior to last fall, Linn R-2 had posted only gains, so James reviewed the past to guess at the future. “That’s why our assessed valuation going to the negative was a bit scary for me heading into this year, but we’ve got that figured out, and I received the documents,” he added. “Now, what that means exactly for us in dollars is yet to be determined, because each of those things is taxed at a different rate, but in general, that’s very positive for us.”

Between the good news from the county and potentially positive news from the state capitol, James is optimistic.

“We should be in a very good position in the coming year,” he said. “However, we’ll still need to consider operating levy options.”

Linn R-2 will meet the state’s minimum salary requirement, but James said the teacher’s base salary grant will likely go away after next year.

“That means we’ll be required to carry the load to $40,000, and that’ll be increased by 3% every year after that,” said James, noting that after incremental increases, the minimum salary will be $45,000 by 2030.

He added that 10 years ago, the base salary was $29,000.

“Getting to $40,000 is just a hair under $1 million per year more in salaries and benefits, with a level operating tax and very little movement until recently at the state,” James explained. “We have done a lot with that money; not just me, but leaders before me and boards before us. But at some point, we can’t take on a million dollars of weight each year and not do anything.”

Regarding school employees, James said staff is trying to weather the recent levy results. “We were very hopeful, and it’s tough going into another year a little bit behind where we wanted to be, but we’re going to address that being by being as positive as we can.”

He anticipated teacher turnover of about 30%, with an average of about 10.5% each year. At this time, as the year draws to a close, six teachers have indicated they will not return to Linn R-2.

“We feel pretty confident that we’re not going to lose anybody else, so we think that’s really positive, especially in the challenging morale here,” said James.

Board members approved the district’s participation in Career Ladder to improve morale and add a little cash to teachers’ pockets — subject to adequate funding at the state and local levels.

Board member Brad Peterson recommended the program and worked with James to develop the state application.

“We can always amend the plan for lesser amounts if our budget will not support the estimated 40% contribution on the district’s behalf,” said James, noting with current staff, the school’s share would be $90,000.

Career Ladder is designed to provide teachers an opportunity to do work outside their contract hours for tier-based earnings — Stage 1 ($1,500), Stage 2 ($3,000), and Stage 3 ($5,000) per year.

Former board member Larry Hunt asked how much it costs the school each month to operate.

James noted that while the district receives regular payments based on the state formula, it’s not always every month. Supplies, transportation, fuel, and the like typically run the district about $350,000 per month, while payroll expenses are approximately $250,000, or about 78% of the total monthly budget.

James noted the application provides a guideline for how Linn R-2 will administer the program, but there are additional guidelines, such as 50% of the time being direct student contact hours. “We can also include things like substituting or covering classes, where we’re providing additional instruction outside of our regular duty,” he added. “We’re going to frame that in a way that is in line with our campus and district improvement plans and our short and long-term goals. We’ll continue to work on that guidance document, and I’ll bring it back here for your review.”

Elementary Principal Cammie Higgenbotham and High School Principal Erin Sassmann will work up plans with leadership teams, after which James and Peterson will partner to finalize them. “Brad has been under that system before, and he’s looked at others, so we’re going to partner on that and bring back a guidance document that benefits our students and staff the most,” said James, noting the district’s portion would cost about 1.2% of the fund balance. “Once the budgets are approved and we have a better idea of what next year looks like, we can pull that back and amend the plan. I’d rather give them as much as we can.”

Under Career Ladder, the district’s 40% is matched by 60% from the state.

However, James told the board that whatever amount the district provides, Career Ladder incentives do not count toward the district’s minimum salary requirement.

Board President Dr. Shawn Strong thanked Peterson for his work on the project over the last several months.

Additional news from the meeting will be published next week.