2011-12 Budget Suggestions
The next budget year (2011-12) is going to be difficult for the Wake County Public School System.
We expect an additional 4,100 students either enrolled in our schools or attending local charter schools (for which we provide per-pupil operating funding). We will be opening two new schools.
At the same time we are not expecting any additional county funding, costs for benefits and utilities are increasing, and, most importantly, state and federal funding is likely to be cut significantly. The funding shortfall for 2011-12 is estimated at between $70 million and $100 million dollars.
As in the previous two years, WCPSS must do more—serve more students, and do so more effectively—with less money. We invite your suggestions on how best to achieve that.
Suggestion Period Ended
The suggestion period has ended. Thanks to all for the almost 1,200 suggestions.
Superintendent Tata will present his budget proposal to the Board of Education on March 15.
Important Background Information.
Although the North Carolina Department of Public Instruction (NCDPI) has released proposals for the 2011-12 budget, it is still very early in the state budget process. The governor will likely release her proposed budget in January or February. The General Assembly convenes in January and will release a budget later in the spring. There will be many proposals and revisions as the General Assembly balances the budget for 2011-12.
State resources currently pay for 54 percent of the total operating budget of WCPSS. The NC Office of State Budget and Management (OSBM) had requested all state agencies submit plans to reduce budgets by 5, 10, and 15 percent. On Nov. 22, NCDPI released a list of possible cuts of 5 and 10 percent reductions in public school funding. Details of the NCDPI budget cut proposal are available at their website. Some key elements include:
- Reducing local school district Central Office administration by 5 percent or 8 percent.
- Reducing the Department of Public Instruction by up to 9.2 percent.
- Classroom teacher reductions increasing class sizes at every grade.
- Teacher assistant reductions providing funding for assistants only for kindergarten.
- Assistant principal months of employment reductions.
- Services for children with special needs and academically gifted children reductions. Services for children with special needs would be reduced by 3.4 percent or 4.2 percent. Gifted students’ services would be cut from 5 to 10 percent.
WCPSS would be credited with having implemented some of these funding reductions in previous years, so the direct impact on us would be less than the state average.
Federal sources currently support 16 percent of the school system’s operating budget. On June 30, 2012, $48 million in one-time American Recovery and Reinvestment Act (ARRA) funding ends. These dollars primarily impact Title I and Special Education. With the knowledge that these were one-time funds, exit strategies for the use of these funds were developed from the onset, however, managing staffing implications and health care cost obligations will be necessary.
North Carolina has recently been awarded $400 million in Race to the Top funds, intended to build statewide capacity and infrastructure. There will be benefits to local education agencies, but it is not a significant source of funding direct to school districts, and these funds cannot be used to address state and local revenue shortfalls. WCPSS will receive $10.2 million to cover a four-year period. This is a one-time source of funds that lasts for a four-year period.
Local sources support 30 percent of WCPSS’s overall operating budget. The primary local source of funds is the county appropriation of $313.5 million. Prior to the economic downturn, our county appropriation was $316.2 million at the beginning of 2008-09 and our funding per student was just over $2,200 per year. Assuming flat funding for 2011-12, our county appropriation for next year will remain at $313.5 million and our funding per student will be just over $2,000 per year. The Wake County Board of Education will determine the level of funding to request from Wake County for the 2011-12 budget. The Wake County Board of Commissioners ultimately determines the amount of county appropriation for the school system.
This site will be updated with more information, and you can find more details about how our school system is funded and structured in the school board’s 2010-11 adopted budget (PDF).
As our school system faces these budget challenges, students, families, employees and communities will be affected. We invite you to review the information available on our website and submit your suggestions for meeting our 2011-12 budget challenges here.