Update on 2009-10 Budget

Contact: Haley Miller (336) 370-3200
Created: 7/9/2009 10:52:13 AM

The new fiscal year started July 1 for Guilford County Schools (GCS). With budget negotiations at the state level stalled, the Board of Education adopted an interim resolution last month to allow district operations to continue. Tuesday night, Chief Financial Officer Sharon Ozment presented an overview of the district’s proposal for dealing with the anticipated cuts in state funding. The board will discuss the proposals during a budget work session today at 11:30 a.m. Watch it live at http://www.gcsnc.net/depts/gcstv2/index.htm.

“Given recent developments in Raleigh, we are hopeful that the worst-case scenario for GCS – a potential $40 million cut in state funding – won’t become a reality,” said Superintendent Maurice “Mo” Green. “With this is mind, we have developed a plan to address approximately $34.2 million reduction in state funding.”

As part of the superintendent’s budget recommendation adopted by the board earlier this spring, $12.6 million in cuts have already been addressed. This first wave of cuts is Tier 1. For the second wave of cuts, GCS identified significant potential cuts of over $24 million. These cuts have been divided into two levels—Tier 2 and Tier 3. Staff recommends that the board approve all cuts in Tier 2 (which total approximately $12.9 million) and two cuts in Tier 3, namely to increase class size by one in grades K-12 and to eliminate 13 foreign language teacher positions in certain elementary schools. These two cuts in Tier 3 total approximately $8.7 million. In other words, the district is recommending reductions that total about $21.6 million.

The Tier 2 cuts include the elimination of various central office positions or changing the funding source of certain central office positions. The cuts in this tier also include, among other items, cuts to various programs, materials and supplies, professional development opportunities and travel, and some reductions in athletic supplements, materials and supplies. In addition, the district is recommending that GCS no longer pays the premiums for employees’ dental insurance – an annual cost savings of about $1.4 million. “While we believe this is an important benefit to have, we have decided to sacrifice it in order to help preserve as many jobs as possible,” said Green. The district plans to offer dental insurance as an optional benefit payable by employees.

Tier 2 also includes a recommendation to modify the Home Field Advantage program, which currently allows highly mobile (transient) students in certain schools to stay at their current schools with transportation provided, even if they move during the school year, throughout a grade level (e.g., K-5, 6-8). Under the modified plan, students would be eligible to stay in the school through the year in which the relocation takes place with transportation provided. Thereafter, they can stay in that school if they provide their own transportation. Otherwise, they would go to the school in their student assignment boundary area. The modification of this program would save GCS about $416,000 annually, primarily in transportation costs. After carefully reviewing transportation costs, the district is also recommending in Tier 2 that the board approve the consolidation of certain bus stops, primarily for high school students, eliminate 10 stand-by bus driver positions and move lead drivers from 11 months of employment to 10 months of employment. These savings total about $594,000. The district is also recommending reducing the extended year contracts for assistant principals at the middle and high school level by one month, a savings of about $223,600, in Tier 2.

As mentioned earlier, GCS is recommending an increase in class size by one and the elimination of 13 foreign language teacher positions. While these cuts are in Tier 3, the district moved forward with these cuts last month so that staffing plans for schools could be reworked well in advance of the start of school. Should this level of cuts not be needed, GCS would plan to return savings generated by these particular cuts to schools first. These cuts are primarily impacting interim employees who are on year-to-year contracts. Human Resources is making every effort to place as many interim employees as possible as positions open up due to the revised staffing plans and due to retirements, relocations and turnover as part of the normal attrition process. In the last two board meetings, the board approved 148 contracts for interim employees. Staff hopes to bring even more forward on July 23, the next regularly scheduled board meeting.

Other Tier 3 cuts that have been considered but are not currently part of administration’s recommendation to the board include the following: eliminating the extended year program at Brooks Global and Johnson Street magnet schools ($429,000); going to three-tier bus schedules ($500,000); further consolidation/reduction of the number of bus stops ($500,000); and eliminating the International Baccalaureate (IB) program at Smith High School ($73,500). “Again, I want to reiterate that we are not recommending these particular reductions at this time,” said Green. “It is our fervent hope that additional reductions, including the potential Tier 3 cuts identified above, won’t be necessary.”

http://www.gcsnc.com/superintendent/budgetjuly9.htm

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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.