Board of Education Approves Budget Reductions

The Guilford County Board of Education approved the district’s proposed budget reductions. Guilford County Schools (GCS) had to cut approximately $3.8 million as part of a required rollback or “reversion” in state funding.

The board approved the recommendation with the condition that staff (a) monitor the impact reductions in foreign exchange program instructional supply dollars may have on the GCS Newcomers School and Kirkman Park Elementary and (b) take appropriate actions to address any hardships that may arise at these sites as a result of such reductions.

The $3.8 million is based on two adjustments: the statewide reversion caused by the state revenue shortfall and the reduction of funds based on the actual Average Daily Membership (ADM) of students versus the projected enrollment. School districts must submit their plans for handling the reversions to the North Carolina Department of Public Instruction Dec. 19. The state will adjust allotments for the ADM shortfall in the near future.

About 54 percent of the reductions – or slightly more than $2 million – are coming from central administration. The remaining 46 percent – or $1.7 million – is from funding that normally would go to the schools.

GCS Superintendent Maurice “Mo” Green said that while central administration will absorb a higher percentage of the reductions, the fact that most of the district’s resources already go to schools means that principals and teachers will feel the impact.

Currently, nearly 79 percent of GCS resources are tied to the schools, primarily to fund teachers, social workers, guidance counselors, principals, custodians and other school-based personnel. Another 21 percent of GCS resources go to services that support schools, including central administration.

“You can’t cut nearly $4 million and not feel it,” said Green. “We are going to feel some pain, but I’m also confident we will come through this tough economic time successfully as a school district and as a community.”

In anticipation of the state reversion, GCS froze hiring for non-school based personnel on Dec. 3. Starting Jan. 1, the district also plans to have employees accrue compensatory time instead of paying overtime and is curtailing non-student-related travel, particularly out-of-state. GCS also is delaying expenditures and cutting funds for staff training, testing, graphic production and other contracted services.

When GCS first learned of the budget reductions in November, the district initiated a hiring freeze for all employees, and also held off on releasing 25 percent of instructional supply dollars that are generally allotted to schools. The freeze now only includes non-school based personnel. In addition, GCS has now released 98.1 percent of instructional supply dollars.

GCS gets about 60 percent of its $591 million operating budget from the state. Local funding accounts for roughly 33 percent. The federal government provides the remaining 6.7 percent.

Click here to listen to a podcast from Mo Green regarding budget reductions.