School budget woes could force cuts

Beard

By Kathy Chaffin

kchaffin@salisburypost.com

Rowan-Salisbury Board of Education members agreed Monday to ask county commissioners for an additional $3.3 million to raise the school system's per student funding to the state level.

This would increase the county's annual appropriation to the school system from about $32.3 million to $35.6 million.

That was one of four options presented at the school board's work session by Chief Financial Officer Tara Trexler. "None of them are anywhere ideal," she told board members.

A chart Trexler included with a handout to board members shows how the school system's per student funding has gradually fallen below the state average. The only year the Rowan-Salisbury schools' per student funding matched the state average was in 2007-2008, and over the three years since then, the gap between the local and state per student funding has increased significantly.

Superintendent Dr. Judy Grissom said the longer the gap continues, "the harder it's going to be to get back to the state average."

Board member Bryce Beard said he was tired of the Rowan schools lagging behind the state average, "If you shoot behind the bird," he said, "you're never going to shoot the bird. You have to shoot ahead."

Also included in Trexler's handout was a list of the positions, programs and supply funds cut from the 2009-2010 budget. These included 128 positions and reduction of months/hours/salary for others.

Trexler said the number of people losing their jobs would have been even higher had the state not required retirees who had returned to work to resign to avoid paying them a salary and retirement benefits, which is commonly known as double-dipping.

Unless the county increases its funding for the school system to meet the state per student average, Trexler said the school system would be forced to cut even more positions.

The state is already projecting a $1.12 million shortfall in funding to the Rowan-Salisbury School System for the 2010-11 school year, with a possible additional 3 percent, 5 percent or 7 percent cut (which would be $2.76 million to $6.77 million less dollars) to offset an anticipated shortfall in projected revenue.

Under the additional 3 percent cut scenario, Trexler said a $3.3 million increase by the county would cover the state deficit and come close to covering the second scenario of a 5 percent cut in state funds. If the state proceeds with a 7 percent cut, Trexler said the school system would need to cut $2.8 million from its budget.

The three other options presented are as follows:

- Option 2 - Accept same county appropriation of $1,565 per average daily membership and proceed with eliminating 20 reading assistant positions retained this year with American Recovery and Reinvestment Act of 2009.

This would result in a $189,365 shortfall, which would increase to $1.6 million if the state cuts its appropriations by an additional 3 percent, $2.8 million if the state cuts are 5 percent and $5.6 million if the state cuts are 7 percent.

- Option 3 - Accept same county appropriation of $1,565 per average daily membership. This would result in a $189,365 shortfall, which would requires $2.2 million in adjustments if the state cuts its appropriation by an additional 3 percent, $3.4 million if the state cuts are 5 percent and $6.2 million if the state cuts 7 percent.

- Option 4 - Accept same county appropriation and identify a combination of cuts and fund balance appropriation to retain core classroom teachers. The school system has an undesignated fund balance of $6 million and has no growth.

Trexler compared using part of the fund balance to reduce the amount of cuts to dipping into your personal savings. "Once you spend your savings account, it's gone," she said.

If cuts have to be made, Grissom said school employees will likely lose their jobs. "There are not that many people who are looking at retirement," she said.

Delores Morris, assistant superintendent of human resources, said fewer teachers are retiring because they no longer have the option of double-dipping and because some have spouses who have lost their jobs.

Board Chairman Dr. Jim Emerson asked if the school system had the option of increasing class sizes.

Grissom said the state has a required ratio for grades K-3.

"Four and above, you can change," Morris added.

"When are we going to have to bite this nasty bullet?" Emerson asked of the budget proposal.

Grissom said Trexler will present actual budget figures for board members to consider at their March 22 meeting. The proposed budget will be presented to the county commissioners in April.

Trexler said she needed to know which option board members wanted to pursue before she put together a proposed budget.

Board member Karen South Carpenter said she thought they should ask county commissioners for what they need to keep from further affecting students.

Emerson agreed. "We're not asking for gravy or fluff," he said.

Other board members (Linda Freeze was absent) agreed to ask for the $3.3 million increase to raise the system's funding level to the state average.

Grissom pointed out that none of the options would reinstate the cuts the school system had to make going into the present school year.

Contact Kathy Chaffin at 704-797-4249.