Budget Update from Chief of Staff

5/14/2012

Dear Employees:

At its meeting last Wednesday, the GCS Board of Education approved a draft $688.3 million budget for 2012-13 that includes a $185 million request in local funding from the Board of County Commissioners (BOCC). About 81.5 percent of GCS’ operating budget goes directly to schools, primarily for staffing. About 18.5 percent of GCS’ budget goes to administrative support services provided to schools.

The budget request represents a $9.8 million increase in BOCC funding, which has remained flat since 2008-09. The additional funds requested would help defray rising costs for utilities, fuel, employee benefits, increased student enrollment, and other basic operating expenses.

The funds would also pay for a proposed1 percent increase in salary for all GCS employees except Superintendent Maurice “Mo” Green. If approved, this would mark the first time in three years that GCS employees have gotten any kind of cost of living adjustment.

The board also asked county commissioners for $7 million in capital outlay funds. Capital outlay funds are used to maintain and repair roofs, windows, HVAC systems, flooring, walls, etc. The district’s budget request was presented to the commissioners on Thursday. County commissioners will vote on their budget, including GCS’ request, on or before July 1, in keeping with state law.

The school board does not finalize GCS’ budget until later this summer/early fall, after the North Carolina General Assembly approves the state budget. State funding accounts for about 60.7 percent of GCS’ operating budget, excluding capital outlay, special revenue from grants and other sources, and enterprise funds such as child nutrition and after-school care services. Local funding makes-up about 31.9 percent of GCS’ operating budget, while federal funds account for 7.4 percent.

To help employees understand how local funding impacts our budget, we have pasted two charts after this message (see below). The first chart shows how local funding has not kept pace with increases in student enrollment, while the second chart shows how local funding for maintenance and other capital outlays has not kept pace with increases in square footage.

More information about the budget, including Governor Bev Perdue’s recommendations to the N.C. General Assembly, is available here. As always, if you have any feedback, questions or concerns, please share those via feedback@gcsnc.com .

Sincerely,

Nora K. Carr

Chief of Staff