By Maggie Blackwell
mblackwell@salisburypost.com
A recent demand from the state to pay back $577,957 given to the Rowan-Salisbury school system must be taken from the fund balance, school board members learned in a Finance Committee meeting Wednesday.
“We just don’t have it,” Superintendent Dr. Judy Grissom said. “We have about $300,000 (in money from the state).”
Chief Financial Officer Tara Trexler will ask the school board Monday to approve taking funds from the fund balance, which is at about $5 million now.
This reversion follows a request in December to revert $817,000. At that time, the system had a budget surplus in fuel, because gas prices had fallen, and some open positions had not been filled. These two line items allowed the system to repay the money without cutting into necessary programs.
The term “necessary programs” also is being redefined. After-school programs to help students prepare for EOG testing have been cut. Training for teachers has been cut. Travel, many meetings and refreshments are a thing of the past. Only necessary purchases are being approved. Soon the system may cut tuition reimbursements.
“We asked the state what we’ll do when we can’t meet payroll,” Grissom said. “When that time comes, we may be sending people home.”
She noted she is doing all she can to retain as many jobs as possible, even considering county-wide bake sales.
If a reduction in force were to become necessary, working retirees would be cut first, followed by interim staff, then those hired most recently.
The school system is anxiously awaiting action from both the state and county so officials can make plans for the 2009-2010 school year. The state Senate has suggested increasing classroom size by two students at all grade levels. The house of representatives is expected to take action on this by Friday, May 22. Such a move would reduce RSS staff by 84 teachers.
The school system anticipates coming up short next year by $1.4 million if the county cannot support mandatory increases, such as a state-mandated salary increase of 1 to 3 percent, an increase in health insurance and other items.
If the school system must resort to the fund balance for this deficit, along with the shortfall for the state reversion, the fund balance could drop from $5 million to $3 million.
“It doesn’t take too many dips to really affect it,” Grissom noted.
Next year’s capital budget will come in about 61 percent lower than last year, said assistant superintendent for operations Gene Miller.
Land, buildings and improvements will get about half of last year’s funding, dropping from $4.5 million to $2 million. Equipment expenditures will drop from $800,000 to $600,000. Vehicle costs will drop from $130,000 to $24,000.
“People keep asking me, ‘Where’s the lottery money?’ ” Miller said.
He explained that all lottery revenues go to pay bond debt incurred in 1992. It will be paid off in 2016.
Assistant Superintendent for Human Resources Delores Morris said she is negotiating contracts with new teachers for next year’s openings. But, she added, the contracts stipulate if further reductions come from the state or county, the system cannot honor the contracts.
Rowan-Salisbury schools has a monthly payroll of about $14 million.