Thursday night, citizens in Shaw packed out the Shaw High School cafeteria for a public hearing on the upcoming year’s budget.

Residents are looking at a potential tax increase of .66 mills.

“This is our budget for the 2010-2011 fiscal year,” said Ross Saddler, business manager. “We’ll start with our revenues from local sources, which includes the ad valorem tax.”

District officials have budgeted receiving $1,022,434 in ad valorem tax.

According to the public notice published in the July 13 issue of The Bolivar Commercial, “This increase in ad valorem tax revenue means that you will pay more in ad valorem taxes on your home, automobile tag, utilities, business fixtures and equipment and rental real property.”

“We do not increase or reduce,” said Saddler of the ad valorem tax and the proposed increase in millage rate. “We ask for the county to approve it.”

The $1,022,434 in ad valorem tax makes up the bulk of the projected “local source” revenue in the district.

According to Saddler’s projections, the district will receive a total of $1,272,813 from all local sources.

The district is expecting to receive funding from several other sources, in addition to ad valorem taxes.

Shaw’s schools will receive $2,685,940 from state sources. This is the district’s MAEP (Mississippi Adequate Education Program) funding.

“The FY 2011 MAEP allocation is based on appropriation level from HB 1622 level of funding and is not based on the additional funds from HB 1059 (extension of the Federal Medical Assistance Percentages) becoming available at any time during the fiscal year,” explained a hand-out given to the meeting’s attendees. “The MAEP funding for the formula amount and add-ons are included in one lump sum, which will provide greater flexibility in dealing with reduced funding levels.”

The $2.6 million that the Shaw School District received from MAEP funds is a decrease from last year’s allocation.

“Due to budget constraints this did decrease from the previous fiscal year,” said Saddler.

This cut was approximately 15 percent — a total of $442,000 from the budget.

“The lump sum allocation means that our MAEP allocation amount will not change during FY 2011 due to revisions of MAEP add-on programs (special education, vocational education, gifted, alternative school or transportation),” read the MAEP hand-out. “However, the allocation could change due to any budget reductions that may occur during the fiscal year.”

The Shaw School District is expecting to receive approximately $144,150 from Section 16 land leases.

“The rest of our money will be federally funded,” said Saddler.

According to a pie chart handed out to those in attendance, the largest part of the Shaw School District budget will come from federal funding.

Federal sources come in at $3,120,063, for a total of $7,222,966.

The Shaw School District Board of Trustees will have a special call meeting at 6 p.m. Aug. 5 to approve the over all budget.