A bill proposed for the upcoming Oklahoma Legislative Session that would cap annual increases in property valuations at three percent would negatively impact the bottom line for Broken Arrow Public Schools at a time when the state’s economic downturn has already created a bleak economic outlook for state school districts.

The Broken Arrow School District would have over $700,000 less in its general fund budget this year if the cap being proposed by Oklahoma City Senator Jim Reynolds were in effect as ad valorem taxes make up approximately 23 percent of the district’s budget according to Chief Financial Officer Ann Wade.  In addition, there would be a subtraction of just under $101,000 from the district’s Building Fund if the bill were in effect today.

Speaker of the House Chris Benge told the Tulsa World that he thinks the state’s dismal economic climate makes the bill proposal one of bad timing given the budget cuts state agencies have already had to make and the additional budget cuts being forecast from the upcoming legislative session.

Wade agreed with House Speaker Benge.

“Even school districts like ours that planned for a bad budget year this year, are facing tough economic choices in the future; it makes no sense to add to the budget crisis for school districts by taking away additional revenue as this bill would do.”

Wade said the district’s Net Assessed Valuation (already one of the lowest among big school districts in Tulsa County) would be reduced by an additional $19.4-million if the bill were in effect this year, meaning the district would lose about $1.9-million in its bonding indebtedness capability, an economic hurdle made even more difficult to overcome for a growing district like BAPS.

“We (BAPS) have already been cut over $2-million this year by the state,” Wade said.  “Some are forecasting additional budget reductions in the 20 to 25 percent range for the 2010-2011 school year.  Obviously additional cuts in ad valorem taxes on top of the state cuts would be disastrous for all schools.”

Wade said she appreciates Speaker Benge’s strong stand against this issue.

“It is clear the Speaker understands the economic realities for our schools,” she said.