It looks like an increase by Fayette County School Board of .754 mills will not be enough to offset recently announced state education cuts of $2.25 million and possible decreased revenues if the state Homeowners Tax Relief Credit is withheld. Board members Monday morning voted to advertise a new rate of 19.75 mills for the Maintenance & Operations millage that will bring the increase to 1.154 mills over the current rate of 18.596. The millage had been advertised at 19.35 mills.

School system employees are tentatively expected to begin a co-pay on medical and dental premiums beginning in January, amounting to $1.3 million in savings for the second half of the 2008-2009 budget cycle. The school system will also implement a five percent reduction in the operations budget, expected to generate approximately $400,000 in savings.

The board’s decision came after Gov. Sonny Perdue announced a $1.6 billion reduction in spending for state departments. Cuts in money received by Fayette County school system amounts to $2.25 million.

Playing into the board’s decision was the announcement by Perdue late last week to withhold the Homeowners Tax Relief Credit, a measure that, if approved, would amount to a $3.5 million hit to school system revenues.

Public hearing on the new proposed millage will be held at the school system office Aug. 21 at 8:30 a.m. and 6:45 p.m. and again Aug. 28 at 8:30 a.m.