Caution: The opinions posted here reflect my personal views, not the views of anyone else on the Burke County School Board. I do not speak for the Board or anyone else on it.
Susy Tilley asked that the Finance Officer Keith Lawson of the Burke County Public School System (BCPS) give a little primer on school finance. Both Mr. Lawson and Dr. Stellar did a good job explaining the budgetary hurdles the system must address at the board meeting last night, but I thought it would be helpful for folks to see the impact of the state budget cuts on NC counties.
State Funding - 09-'10
The slides below do a good job demonstrating the impact of budget cuts (2009-2010) statewide, the impact of the federal stimulus program, and the upcoming shortfalls (statewide) in 2011-2012.
Education Funding -
The state has tried to mitigate these cuts by encouraging counties to use the Federal Stimulus funds to make up the shortfall.
The state funds teachers, teacher assistants, clerical, custodians etc. Generally the state bases their funding on ADM (average daily membership). ADM has been decreasing for a couple of years – there are about 350 less students this year than last year. According to the Morganton News Herald, "Burke County Public Schools in 2007-08 received almost $5,700 per student from North Carolina." MNH "Burke County School Enrollment Drops," Oct.23, 2009, Steve Welker. So, not only have we been hit by state budget cuts - our ADM continues to decline.
Dr. Stellar mentioned last night that it is possible the state will require more reversions and that BCPS will not have state funding for at least 12 positions. And, as you can see above, the federal stimulus money will run out. (It is possible that these positions will be eliminated through attrition - not replacing folks who voluntarily leave the system through retirement or other means.)
Local Funds
Among other things, local funds are used for capital expenditures and teacher supplements. Capital outlay is often "restricted," that is, it must be used for one-time expenditures, like building, renovation, maintenance – that kind of thing. Teacher's supplements are recurring expenses, and they come out of a general fund. For information on teacher supplements, click here to see 2008-09 supplements: http://www.dpi.state.nc.us/docs/fbs/finance/salary/supplements/2008-09supplements.pdf
From what I gather through my paltry research and limited life experience, capital outlay money is appropriated as soon as possible. Sometimes part of the capital outlay money is put into a reserve fund for later use, but I think generally the majority of it is all used to maintain buildings, repair HVAC, and improve energy efficiency. It is also used for technology.
This is all a VERY simplistic view of NC school finance. There is a very good article, "Public School Budgeting in North Carolina," Kara A. Millonzi, Assistant Professor of Public Law and Government, which details the interplay between the county commissioners and school boards and describes different types of local funding.
Our present situation:
The public seems to be saying that they cannot abide the thought of spending money on technology (over $2 mil) while classified staff hours have been cut back 6% and teachers voluntarily gave up half of their supplemental pay. I am hearing principals who support the technology plan. I am reading comments from teachers who will be displaced from classrooms because those rooms are going to be made into computer labs. I am communicating with students who say they never use the computer labs they have. (I have even heard from two young men – high school students – who recognize the value of their teachers and custodians and have opined that restoring pay to the employees should be paramount. I was very impressed with that.) I am hearing some people say it is the wrong technology, the wrong plan – that "one size" does not fit all when we rely on principals to make site - based decisions based on what they feel their schools need. I am hearing about "good guys" and "bad guys" and forced compliance. I think everyone feels a bit threatened.
So, it seems to me, we need to take a deep breath – evaluate our financial position as best we can with the assistance of the county commissioners – and then try to find a compromise between all factions. I understand that Dr. Stellar wants the funds yesterday. I understand there is urgency – especially for the building and maintenance issues. In my opinion (remember, I only speak for myself) the facilities requests for appropriations are reasonable. I just hope that Burke County firms are able to competitively bid on those projects.
I hope that we can meet with the commissioners as soon as possible and come up with options for everyone. (And yes, these options would be brought back to the board for a vote.)
A successful mediation is one where all parties walk away from the table feeling like they gave something up. I think trying to meet the needs of the classified and certified staff and provide the technology that principals actually want (and that also meets the goals of Dr. Stellar) is a worthy goal. And in the end, if everyone gives in a little, the major benefactors will be the students.
I think we all need to keep in mind that whatever we decide this year – especially if we are able to manage some pay restoration – may all have to be reconsidered the year after next due to the impending funding shortfalls.
Teachers, classified staff, administrators – thank you for all that you do.
