Update on the State Budget

This week, the legislative process continues on the 2009-10 budget, which proposes a $40 million cut for Guilford County Schools (GCS). With 60 percent of the GCS budget coming from state funds, these debates are especially pertinent. The GCS budget is simple:

• Sixty percent of funding comes from state funds.
• Eighty percent of the district’s resources are in the schools.

If our lawmakers do not add a tax package to the budget, the plan will be debated on the floor of the House this week. Should they add a tax package, the budget will go back to the House Committee on Finance, meaning budget negotiations could be delayed until next week.

As it stands now, here’s what the state budget proposal means for GCS:

• Even Bigger Class Sizes. The subcommittee approved an increase of two students for 2009-10, and an increase of one more student (for a total increase of 3 from current sizes) for 2010-11. These recurring cuts amount to $322.7 million and $463.1 million over the biennium.

• Smaller Low Wealth Cut. The subcommittee reduced this cut to provide 13 "low wealth" LEAs (school districts) with 75 percent of their expected supplemental funding in 2009-10 and 50 percent of their expected funding for 2010-11.
  
  
• Smaller Dual-Enrollment/Huskins Cut. The decision to eliminate funding for college transfer courses still stands, but now with the exception of math and science courses. $3 million was restored to this cut in both years. (The reduction does not impact students of Early and Middle College High Schools.)

• Yellow School Bus Provision. The subcommittee on Justice and Public Safety proposed and approved a provision that will transfer 100 percent of the liability for accidents involving yellow school buses and drivers from the state to local school districts. For GCS, this means potentially adding significant expenses (a single incident can cost $500,000 or more) at the same time state funding is being decreased.

• Cuts to Physical Therapy/Occupational Therapy/Speech Therapy. The subcommittee on Health and Human Services eliminated funding for these optional services in Medicaid. However, it’s not yet clear whether this cut may not apply directly to schools, or affect a school's ability to receive reimbursement if these specialized therapies are offered by the school system. 

Here’s what GCS is proposing to do to reduce the impact of these reductions:

Class-size increases will be limited to one student by saving $40 million through a combination of two strategies.

• Central office budgets are severely limited with a 13 percent cut, saving $15 million.
• Principals are revising their staffing plans to reflect a one-student increase in the teacher allotment formula (the student-teacher ratios used to fund positions at schools) and the elimination of 12-13 elementary level foreign language teacher positions (excluding immersion and International Baccalaureate). Until this process is completed we will not know the exact positions and people impacted by this proposal.

Please know that the district is exploring every possible option with the best interest of our children’s futures in mind. Questions regarding the budget may be sent to feedback@gcsnc.com. Also, contacts for all legislators can be found here.