County schools brace for a tight budget year

March 31, 2009 by pamliconews

Loss of low wealth status; decreased enrollment add to budget woes

Pamlico County Board of Education members echoed the sentiments of private and public entities throughout the nation Monday as they got a first glance at a very preliminary 2009-10 budget. Superintendent Dr. James Coon set the stage early and often by emphasizing the difference between the preliminary numbers and the final product. He referred to it as simply “the first blush, not representative of what would be taken to the County.”
“This is a starting point and the result of what our departments have initially requested,” Coon told Board members. “We understandably have a long way to go.”
The “long way to go” begins with agreement that the requested County appropriation of a 12 percent increase over last year needs to be slashed in half. The total preliminary County appropriation for 2009-10 is $3,138,218 or $337, 272 over the 2008-09 actual budget of $2,800,946. Slashing the County’s piece of the pie by half would result in a reduction of approximately $168,600 bringing the total request for 2009-10 to $2,969,618.
But despite efforts to make such reductions, Pamlico County Schools Finance Officer Steve Curtis, who presented the preliminary budget, had an added warning.
“We are facing a bad perfect storm this year,” Curtis said. “We not only have to cope with a nationwide economic downturn, we also have to deal with a loss of our low wealth status and a decrease in enrollment.”
According to Curtis, the state formula used to designate low wealth status will eliminate Pamlico County this next school year resulting in a loss of approximately $88,000. Making the situation worse is the expectation decreased enrollment which Curtis estimates could be about 50 students will also have an impact budgeting concerns. Added to these factors are added obligations on school districts such as a 7.4 percent increase of school contribution to the state medical coverage and an over 8 percent increase requiring schools to pay into the state retirement system.
State reductions will further cut into budget this year with an expected $144,000 decrease to Pamlico County Schools. The state has released its intention to provide step increases to teachers and administrators expected at about 2 percent. However, a two-year moratorium on longevity pay and a one year moratorium on ABC bonuses are planned. The state is recommending that other state paid employees do not receive salary increases.
Board member John McCotter expressed concern that personnel need to be well informed of the state’s proposals.
“We need to communicate with staff members and clarify the intent – there must be a dialogue,” McCotter said. “The purpose is to save jobs and it is important that our staff understand this.”
But in spite of such news from the state, Dr. Coon did have a few words of optimism.
“While we are not yet clear on the details, the federal stimulus package will have an impact,” Coon said. “North Carolina will receive finds and the opportunity to apply for grants that can make a tremendous difference.”
The state is currently earmarked to receive over $575 million for IDEA and Title I programs and $1.2 billion in direct allocations for the state stabilization fund. According to Coon, 67 percent of the funds will be received in Raleigh by March 31.
“The problem is we’re still not clear on how we’ll be able to spend it,” Coon said. “But the good news is that it should help in some areas needed most.”

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