Frequently Asked Questions Regarding 2009-10 Budget

Q. Why are we considering ways to reduce our budget?
A. GCS gets approximately 60 percent of its budget from the state, 30 percent from the county and the rest from the federal government or grants. One reason we are considering budget reductions and redirections is in response to Governor Perdue’s proposed budget, which includes a reduction in the amount of money budgeted for local school districts.

At the same time, county officials have asked us to provide a flat budget for local funding. This means there will be no increases for energy costs, transportation or any increase in student population. So, in order to prepare a “flat” budget, we’ll have to make some reductions in locally funded areas.

In addition, the district is redirecting part of its budget to support the strategic plan initiatives, such as the regional reorganization currently underway. GCS wants to support the strategic plan with current resources, not an increase in budget.

Q. I thought the governor was increasing the budget for education.
A. Yes and no. While the Governor’s proposed education budget includes some line item increases, others are reduced. For example, the Governor’s budget, if ultimately adopted, includes a discretionary cut that could cost us approximately $7 million.

Q. If we do not have final information from the state or county on what our budget will be, why are we making cuts now?
A. Any reduction in staffing depends on approval of the Board of Education and would impact staffing for the 2009-10 school year. We have to anticipate the outcomes of these budgets now, based on current information, in order to be ready to begin the new school year with a working budget in place.

So, while having conversations about these considerations is difficult because we’re telling employees things before final decisions can be made,  we think it is important to give our employees as much information as we can as early as we can.

If the final budget reductions required by the state or other funding sources are less than anticipated, the district intends to return resources to schools first, rather than to central administration.

The superintendent presents his budget to the Board of Education on April 7. The school board will hold work sessions and a public hearing during May. The school board must present its budget request to the commissioners by May 15. The state, which provides the largest part of our budget, does not have a set time frame for budget development.

Q. Why did you target certain positions for the potential school-based cuts?
A. The district did not consider this lightly. As you know from previous communications, we have already made significant reductions in central administration budgets and personnel. District leadership, working in conjunction with the Superintendent’s Principals Advisory Committee, identified two ways to reduce or redirect school-based budgets and personnel. Our goal was to protect the classroom as much as possible while minimizing job loss.

First, the district is withholding approximately 50 percent of the discretionary Weighted Student funding dollars, which would yield about $6 million. The Weighted Student Funding Formula is the calculation used to tie additional budget dollars to individual students based on specific needs. At this time of year, the district typically holds back 25 percent of these dollars, so we’re being a little more cautious this year in response to current economic conditions.

Secondly, we’re withholding certain positions from the planning allotments sent to schools, yielding a potential savings of about $2.9 million. These positions include middle school instructional technology facilitators, media assistants, several elementary English Speakers of Other Languages (ESOL) teachers and high school testing coordinators.

In all, 90 school-based positions may be eliminated; however, the actual number of individuals impacted likely would be less due to vacancies, retirements, etc. For example, we believe the 7.5 ESOL positions at the elementary school level considered for elimination would be absorbed through attrition, not job loss for individual ESOL teachers. That’s why we did not include any elementary ESOL teachers in the meetings we had this week with impacted employees.

Some principals may choose to buy back some of the impacted positions using discretionary school-based budget dollars. Some additional positions may be cut or added due to changes in their projected student enrollment and/or position exchanges made by principals as well. This is a process that occurs every year, and is not related to the need to cut budgets. This process also isn’t tied to the reorganization and redirections currently underway – changes that were outlined as part of the strategic plan launch in January.

Q. What about reorganizing the district's central office into regions?
A. Ideally, the reorganization will not impact our budget. The goal is to develop and staff the regional offices by redirecting current budget dollars and positions. In other words, except for some costs associated with the transition, this shift should not require additional funding. In these tough economic times we need to make sure we're using every dollar wisely.

What does it cost?

+ Personnel - $3.3 million (includes adding 39 positions)

+ Personnel - $0.5 million  (includes adding 6.0833 positions)

+ Non-Personnel - $0.4 million

Subtotal - $4.2 million

How do we fund it?

- Personnel Cuts - $5.2 million (includes cutting 63 positions)

- Non-Personnel Cuts - $0.1 million

Subtotal - $5.3 million

Net Savings - $1.1 million

Q. Shouldn’t we cut central office administration first?
A. We already have. At the March 10 board meeting, we announced that several positions will be eliminated or collapsed. These include instructional improvement officers, school support officers, and support personnel, among others.

Q. So how much of an impact is this on next year’s budget?
The district anticipates having to reduce or redirect approximately $22 million in the 2009-10 budget. About $13.1 million would come from central administration. However, since most of the district’s resources are at the school level, the budget cuts will likely include school-based cuts as well. We anticipate that $8.9 million would come from school-based budgets.  

It is important to note that at this time, GCS is not considering a change to the formulas used to allocate K-12, classroom teachers to schools.

Q. Are you cutting classroom teachers or increasing class size?
A. At this time, GCS is not considering a change to the formulas used to allocate K-12, classroom teachers to schools. Principals are currently using the same funding formulas that were in place last year. Student enrollment drives these formulas. If a school is projected to gain or lose students, they can also expect to gain or lose teaching positions, based on the formulas.

Q.What about the federal stimulus money?
A. At this point, we anticipate receiving funds tied to specific categories like Title I (addresses issues related to poverty), IDEA (special education) and educational technology. We do not know how much money will flow to GCS, nor do we know what rules or regulations will be developed to dictate how these dollars are spent.The Governor and the North Carolina Department of Public Instruction have indicated that federal stabilization funds, also part of the stimulus package, will be used to balance the state budget. As more information becomes available, we will update you.

Q. What about the lottery? How much has GCS received in 2008-09?
A. The estimated lottery distribution for the 2008-09 year is $7,979,864. So far this year, GCS has received $2,152,259 (first quarter amount).

The Governor redirected the second quarter distribution to the state operating budget to help address revenue shortfall. Given the current financial situation at the state level, this may happen again for the third quarter. Keep in mind that 2008-09 lottery funds are targeted for debt service on local school bond referendums.

Q. What help is the district offering affected employees?
A. We want to ensure that our employees, to the best of our ability, find a home within GCS. Perhaps not in their current positions, but in a position that fits their skills and experiences.

The Human Resources Department is available to help employees who may be impacted by anticipated budget reductions or redirections tied to the strategic plan. We’ve added a special section to the GCS Web site for these employees –  www.gcsnc.com/hr/rif/index.htm . This site also may be helpful to employees whose spouse or family members have experienced job loss at other employers.

Q. What’s next?
A. This recommendation isn’t about whether we value our people; this recommendation is based on the harsh economic climate we face and the reality that the Governor’s proposed budget could result in significant cuts in funding for GCS. Also, please keep in mind that the school board will hold work sessions and a public hearing prior to voting on its budget request in mid-May.

As we continue to learn more information about the funds available to us for 2009-10, we will keep you informed. Check our Web site, www.gcsnc.com, and our television channel, GCSTV 2 on Time Warner Cable, often. We also will communicate via e-mails, meetings and other means.  

In the meantime, if employees have questions or concerns, please contact Human Resources at 370-8341, or email employeesupport@gcsnc.com .

If parents or community members have questions or concerns, they may contact the superintendent via superintendent@gcsnc.com.