Dist. 26 delays decision on tax increase

Just as the Cary Elementary District 26 school board was about to vote against asking residents to approve a tax increase on Monday, the item was pulled from the agenda to allow further discussion.

The district, which is facing a serious budget crisis, is looking at three tax hike options in hopes of eliminating its deficit, boosting fund balances, restoring programs and avoiding the need for further borrowing and reductions.

The board appeared likely to deadlock at a 3-3 vote - Vice President Jason Larry was absent - which would have killed the measure.

After hearing the pleas of board members and administrators who supported a referendum, the board agreed to send the measure back to committee for further review.

Director of Finance and Operations T. Ferrier warned that if the district does not boost revenue, it will have to max out its ability to take out short-term loans to fund day-to-day operations - pushing the district closer to a state takeover.

"We may not have enough cash to fund the day-to-day expenses we have," Ferrier said.

But, speaking earlier in the meeting, board President Chris Spoerl said a tax increase would not pass if the district does not make a serious effort to live within its means.

"This district needs to show - it can build and execute a balanced budget," Spoerl said. "Now is not the right time."

The board also heard from community members whose opinions split between those who felt the district should "bite the bullet," and those who said Cary schools already have sacrificed enough.

Chuck Gahler spoke forcefully for the anti-tax contingent.

"A referendum will not pass," Gahler said. "It solidly failed last time with a much better economy."

On the other side, Eric Marts said he and his family moved to Cary for the schools, and would not stay if education deteriorates further.

"Our family's not going to continue to live here," Marts said. "We're going to find another place to live."

Last fall, the board decided against going to referendum again after voters last year shot down a request for $17 million in bonds

In the aftermath of that decision, the district has laid off about 80 teachers, closed Maplewood School and eliminated art and music - moves expected to go a long way toward closing a budget gap that had been projected to grow to $6.6 million next year.