GCS 2009-10 Budget Update

With potential cuts in state funding looming and local funding essentially flat, Guilford County Schools (GCS) is considering a wide range of alternatives as it develops a budget for the 2009-10 fiscal year, which begins July 1, 2009.

No decisions have been made regarding major programmatic cuts or changes in class-size ratios, however, other than those tied to the reorganization of central administration. (See http://www.gcsnc.com/superintendent/reorganization.htm for more information on GCS’ reorganization.) Superintendent Maurice “Mo” Green is scheduled to present his budget request to the Board of Education on April 7.

The school board will then review that request and hold public hearings and work sessions before adopting its budget recommendation on May 12. The school board must submit its request for local funding to the Board of County Commissioners no later than May 15 in keeping with state statutes.

In a presentation to the Board of Education on March 10, Chief Financial Officer Sharon Ozment outlined factors currently impacting the budget development process that are still unknown, such as changes to state funding formulas for staffing schools or state-mandated increases in salaries, changes in employee benefits and amounts such as health insurance.

Other costs that may drive expenses up at a time when revenues may be falling include increases in utilities and fuel, liability and property insurance, and any changes to facilities associated with bond-related construction and renovation efforts.

The district is also reorganizing central administration to support the goals and objectives outlined in the new strategic plan, which was launched in January and approved by the school board Tuesday night. Departmental budgets and programs are being reviewed, reduced and in some cases, redirected, as part of this process as well.

Ozment shared that the North Carolina Department of Public Instruction recommendations to the Governor represent the only information currently available to GCS and other school districts. The state department recommended a step increase for teachers, principals and assistant principals, and a 2 percent increase for classified employees.

The state department also estimates that districts will need to fund a 7.3 percent increase in costs to employers for health insurance and 5 percent increase in the employer’s contribution rate for retirement.

Ozment also said that GCS does not anticipate an increase in student enrollment for 2009-10, in part because the change in kindergarten age cut-off means more than 15,000 children in North Carolina may have to start school a year later, according to state officials.

With Governor Bev Perdue expected to finalize her budget as early as next week, GCS hopes to have better information to make decisions with soon. In the meantime, the district is looking at a wide range of options regarding potential budget reductions. These options range from eliminating programs like Springboard or Teachscape to delaying the health education textbook adoption or changing student-teacher allotment formulas. All contracted services with outside vendors are also being reviewed for possible budget cuts.

In terms of federal funding, GCS does not yet know the specific impact that the economic stimulus package will have on individual school districts.

The Board of Education and district administrators are not the only ones engaged in the budget development process, however. GCS employees have weighed in as well, sending suggestions for potential cost saving measures and cuts to the superintendent via e-mail and through their participation on various advisory committees.

Ozment said that all employee recommendations are being reviewed. She anticipates that many cost-savings measures suggested by employees will be put into place next school year.