NATCHEZ — To avoid taking out a tax-anticipation loan, the Natchez-Adams School District will borrow from its reserve fund made of interest earned on 16-section land in order to make it through the month.

Without the transfer of cash from the interest fund to the district’s general district maintenance fund the district would be short approximately $145,600 by the end of December.

During Wednesday’s school board meeting, which was reconvened following a recessed Dec. 8 regular meeting, the board unanimously approved the transfer.

NASD Business Manager Margaret Parson said the district tries not to take money from the interest fund, but taking out a tax-anticipation loan would incur interest and legal fees.

The district’s general fund does not include federal reimbursements, which are received after the money is spent.

The district currently has $1.2 million in 16-section interest, which Parson said would be depleted in two or three years.

“Eventually, our 16-section (interest fund) will run out,” Parson said.

The district will pay a $500,000 annual debt from the interest fund, but the debt will not be paid off for at least six more years, board member David Troutman said.

The annual $500,000 note has been paid for the past 10 or so years using the 16-section interest. But the district will be forced to find other means to pay it once the 16-sectoin interest funds dry up.

Wright asked Parson if the district would be able to pay back the 16-section fund once tax revenues are received.

But Parson said she did not think the district could afford to pay back the $145,000 this year.

Upon looking at data that showed projections for the district’s monthly revenues and expenses and noting December ending balance was in the red, school board members embarked on a discussion about tax increases.

Board member David Troutman said he thought the negative balance could be the consequence of the board’s decisions in the previous two years to deny or diminish a tax increase requested by the administration.

This summer, the board requested the administration cut approximately $380,000 from local funding sources to avoid a tax increase before passing the budget for the 2011-2012 school year.

In 2010, the board directed the superintendent to cut $300,000 from local sources to lower the requested tax increase for the 2010-2011 increase.

“It’s a lot easier to face the public if we don’t raise taxes, but it’s a lot harder to face you,” Troutman said to administrators.

“We, as a board, have created this little issue, by making some decisions.”

Parson noted that the negative balance was the result of a number of factors.

“The state has not paid us what they owe us,” Parson said.

Board member Thelma Newsome suggested the board be updated on the budget process so that if they had to vote on a tax increase, they would know why it was necessary.

In other school business from Wednesday’s meeting:

4 The board unanimously approved school improvement plans for Morgantown Elementary and Robert Lewis Middle schools.

“School improvement,” a status designated by the Mississippi Department of Education to repeatedly lower performing schools, requires districts to submit a strategic plan to increase student achievement.

Morgantown has been in school improvement for three years, and Robert Lewis has been in improvement for four years and is now in its the restructuring phase.

The board discussed strategies in the plans that differ from the previous year’s plans.

“If (schools) did something that didn’t bring scores up, I don’t see the need to continue year after year,” Newsome said.

Newsome said she thought strategies that affect instruction in the classroom would make a larger impact than adding new programs.

“We have tons of programs,” Newsome said.

Morgantown Principal Alyson Bequette said part of the plan includes administrative and teacher coaching, which is taught by a private firms.

Bequette said she is also excited about learning about and implementing project-based instruction.

– The board voted unanimously to extend Interim Superintendent Joyce Johnson’s contract until June 30 or until a new superintendent is hired.

Her current contract expired Dec. 31. The new contract will allow Johnson to remain a district employee once a new superintendent is hired and serve in another capacity if she so chooses.

– The board approved the design of a brochure to advertise for the superintendent position with the understanding that a few changes will be made.