"I think all of us feel much better about our financial condition

at this point," said board member Allan Payton.

"We have faced some very, very difficult economic times over the last

two years," said chairman Rick Melville. "I didn't think, six

or eight months ago, that we would be meeting in July and talking about

these kind of numbers."

Melville thanked Chapman and Connell for work on the budget during a difficult

year, and said that the result of the work was that the board "didn't

have to raise taxes and nobody lost their job in the process."

The board also approved $14 million in short-term borrowing to begin meeting

expenditures during the new 2004-05 school year. Chapman said the borrowing

is standard practice to cover expenses in the operational budget before

taxes are collected, and any portion of the amount that is actually borrowed

will be repaid from incoming tax revenue before Dec. 31.

The board's vote on 2004 tax rates comes earlier than those in past years,

in order to meet a new Aug. 1 deadline for submitting millage rates to the

state. Chapman said that the county tax assessor's office provided his office

with new tax digest information early enough to allow the board to set rates

at its regular July meeting, rather than at a called meeting later in the

year.

The vote also follows the second and final approval of the 2004-2005 school

system budget on June 24. The $127 million operational budget covers the

school system for its fiscal year of July 1, 2004, through June 30, 2005.

The $127,672,209 operational budget is the principal part of an overall

budget of $180,565,705. The overall budget includes construction funds and

special funds such as federally-funded programs.

Adoption of the budget follows a reduction of $3.9 million in state funding

for the new fiscal year, and a total of $8.8 million in austerity cuts from

the state over the last three years, said Superintendent Peggy Connell

"We have gone through tough economic times in Georgia and it has been

a tough time for the state and for school systems generally, including us," said

Dr. Connell. "But there are several signs of improvement in our economy,

and we believe this budget best addresses a difficult financial situation

this year."

Coweta's state legislators also secured $2.6 million in funding for the

new Grantville elementary school, which offset the amount of local revenues

needed to finish the school's construction. Dr. Connell publicly thanked

them for their representation on that matter.

"We still needed cuts in this year's budget, but it wasn't as bad

as we had feared," she said.

The budget also makes use of up to $3.7 million in school system reserve

funds, from a total reserve fund of $7.4 million. Use of the reserve funds

allows the school system to leave current high school schedules in place,

keeps several elementary class sizes smaller than earlier anticipated, keeps

elementary schools STOP program teaching assistants in place, and hires

needed special education teachers for the new year, among other priorities.

Central office administration was cut by $431,442 in the 2005 budget, with

a decrease of one assistant superintendent, two director-level positions,

four half-time administrative positions, and 1.5 support positions. The

duties have been spread among remaining administrative staff.

System enrollment growth, however, provided the need for new teaching positions

at most schools and in the school system overall, and teachers who wanted

a position in the school system and who had proper certification were found

positions next year, Connell said. The budget also provides a cost of living

raise to teachers, and passes on appropriate raises to personnel.