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School systems seek least painful areas for fund cuts
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Scott Kizner

Thursday, September 24, 2009

By AMANDA BUCK - Bulletin Staff Writer

Martinsville Schools Superintendent Scott Kizner is not sure exactly how the latest state budget cuts will affect the city schools this fiscal year, but he said Wednesday he does not expect any layoffs or harm to instructional programs.

Gov. Tim Kaine announced widespread budget cuts earlier this month that reduced some agencies’ funding by as much as 15 percent. Cuts to K-12 intentionally were smaller, the governor said at the time.

According to an analysis released Wednesday by the Virginia Education Association, a teachers’ organization, the cuts amount to about 1.41 percent for Martinsville, 1.51 percent for Henry County and 1.47 percent for Patrick County.

Henry County Superintendent Anthony Jackson and Patrick County Superintendent Roger Morris said Wednesday they too are waiting for final figures and looking for ways to save money.

Although the cut is not huge, it will have an impact on the city schools, Kizner said.

“Some communities are in a better position than Martinsville to put whatever (state) reductions happen back into the budget” through local funding, he said.

That is not the case in the city, Kizner said, adding that he does not expect any increase in local funding, “so we’re heavily dependent on state funds.”

Seventy-eight percent of the school system’s budget comes from the state, he said. This year’s budget is roughly $24.5 million.

Kizner said the most recent estimate he had seen predicts that the system will lose about $290,000 in state funds in the latest cut, much of it in state contributions to employees’ Virginia Retirement System benefits and group life insurance.

That is more than the VEA estimate, which puts the cut at $239,368. Kizner said the discrepancy is related to student enrollment, which will not be finalized until Sept. 30.

There has been speculation that the state might waive the local systems’ last required quarterly VRS contributions this year, Kizner said. If that happens, “that will offset most of the $290,000,” he said.

Kizner hopes he will have an answer to that by mid-November, but because he can’t be sure, he is going forward as if the cut is certain.

“I’m planning like we’re losing $290,000,” he said. “We have to make adjustments now. I can’t wait for final numbers to come out.”

Any positions that become vacant during the school year that are not required by state or federal mandates probably will not be filled, Kizner said. For example, a secretary and an English as a Second Language teacher have left the system since school started, and those jobs won’t be filled, he said.

Officials also are looking at energy efficiency, maintenance and technology requests, and travel expenses as areas where costs might be reduced, he said.

“At this point I don’t see any detriment to the instructional programs,” Kizner said, adding that he also does not anticipate any layoffs.

Part of the reason the schools have not felt a greater blow from the cuts is because they received stimulus funds that nearly made up for earlier, one-year reductions in state funding for administration and support services, Kizner said. Kaine has proposed making that cut permanent, something Kizner opposes.

Kizner expects to have an accurate figure on the state cut by the time the school board meets on Oct. 12.

At that meeting, “I’ll talk about where I think we can make up whatever the number ends up being,” he said.

If the last VRS payment is waived, it would help the schools initially. But Kizner said he also wonders what that would mean for employees.

“There’s a lot of questions with unknown answers,” he said. “... It may sound like a break, but there’s got to be a consequence to that decision, and I want to learn what that is.”

Henry County’s Jackson was traveling Wednesday evening and was not available by phone. However, in an e-mailed statement, he said, “The analysis provided by VEA confirms that difficult decisions will be necessary to as we continue working to maintain a quality school division in the face of shrinking resources.

“We will begin working with staff to identify areas where cuts might be possible. In anticipation of cuts, we have already placed spending controls and hold backs on departmental budgets until we get a clearer picture of the total impact all of the reductions to our budget might create. The reality is that tough decisions are ahead.”

The VEA analysis puts the cut to Henry County Schools at $766,816. That is out of a total operating budget for fiscal 2010 of about $75.6 million.

Morris, Patrick’s schools chief, said that although the numbers aren’t final yet, he expects the cut to be between $200,000 and $300,000 out of the division’s overall budget of $29 million, including stimulus funds.

The VEA estimated Patrick’s cut at $257,644.

Morris said the system already is preparing for the reduction by holding off on some purchases. He did not specify in what areas but said some are related to technology.

Morris said he does not expect this cut to “be an issue with us at this time.”

“I am not as concerned about this year as I am very worried about next year,” he said.

That is because Kaine has proposed using some federal stabilization, or stimulus, funds reserved for next year in this year’s budget.

If the governor is successful with that request, “which I think he will be,” school officials likely will face deeper cuts, Morris said.

Kizner said he also is concerned about Kaine’s request, which he opposes.

 
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