Interim Budget Resolution Approved for GCS

The district continues to monitor the impact of the developing state budget

Contact: Laurie Hogan (336) 370-8307
Created: 6/26/2009 12:23:15 PM

The Guilford County Board of Education approved an interim budget resolution Thursday that will allow Guilford County Schools (GCS) to operate in the new fiscal year until the State of North Carolina adopts its budget for 2009-10. The interim resolution will allow the district to pay employee salaries, principal and interest on debt, and other ordinary expenses between July 1 and the adoption of the final budget.

While the Guilford County Board of Commissioners passed a county budget on June 4, the district’s final budget also depends on the General Assembly’s adoption of a state budget. GCS receives about 60 percent of its funding from the state, about 32 percent from local sources and the remaining 8 percent from federal and other sources.

The General Assembly is considering significant budget cuts to K-12 education. For GCS, these proposals could result in a $40 million cut in state funding. As the district monitors the development of the state budget, it is working toward balancing its own final budget based on the financial outlook for the coming school year. Principals reviewed their staffing plans again this month to cut 118 school-based positions. Currently, there are 78 people impacted by this cut and the remaining 40 positions are vacant. Of the affected employees, 42 career and probationary teachers and one classified employee are targeted for priority placement in the 140 vacancies district wide that were frozen previously.

Additionally, district staff members expect to bring forward for contract renewal the names of most interim employees during upcoming board meetings. These employees were notified in June that GCS was delaying the renewal of their contracts due to the uncertainty of the budget. “Letters were sent to interim employees due to the economic conditions, but it is not our intention to displace more than 500 employees,” said Sharon Ozment, chief financial officer. Most of these employees will have their contracts renewed as the district learns more about its budget outlook.

Moving forward, district staff members plan to bring a set of proposed cuts before the board at the regularly scheduled meeting on July 7 and schedule a work session with board members at a date soon after to continue progress on the 2009-10 budget. Superintendent Maurice “Mo” Green says with year-round schools starting in mid-July, the board must act soon on making some budget decisions. “It is not an ideal way for us to approach this budget, but it is the necessary way,” Green said.

As the process continues, GCS is making a concerted effort to keep its employees and the community informed. Frequent updates are provided through employee e-mails, newsletters, the GCS Web site and meetings with principals. The district welcomes thoughts and comments at feedback@gcsnc.com. “While these have been and continue to be difficult and painful times for everyone in the GCS family and all those concerned with the future of public education in North Carolina, many employees have taken the time to let us know that they appreciate our efforts to keep them informed, even when the news is bad, and the news has often been bad this budget season,” Nora Carr, chief of staff said. She added that the budget situation remains fluid.

The General Assembly plans to pass an interim state budget in the coming weeks, but the state’s final budget is not likely to be approved prior to the start of the new fiscal year on July 1.

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About Guilford County Schools

Guilford County Schools is the third largest school district in North Carolina serving more than 71,000 students at 120 schools. With approximately 10,000 employees, the district’s mission is to graduate responsible citizens prepared to succeed in higher education or the career of their choice. 

Guilford County Schools is a national leader in providing specialized schools and instructional programs designed to meet the educational needs of a culturally diverse citizenship.  For more information, visit the district’s Web site at www.gcsnc.com.