Superintendent Recommends Austere Budget To Navigate Economic Hurricane
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CBO Neter Discusses Budget
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March 3, 2009 - An “economic hurricane” is the phrase Superintendent Del Burns used to describe the state of the economy as he presented the 2009-10 operating budget for the Wake County Public School System to the Board of Education.
“It is large, difficult to predict a path and will certainly take some time to pass through,” said Burns. “Our budget is a strategy to navigate and stay on course in this storm.”
Burns says the school system budget will provide for projected increases required by the state legislature and part of the increase the school system is facing for higher utility costs.
“No growth, no inflation, no improvements, nothing,” said Burns. “We will limit spending by repurposing existing funds, changing allotment formulas and outright budget reductions.”
The current 2008-09 budget was reduced in December by $11 million in response to mandates by the state and requests by the county (November 2008 Memo). These reductions are being made permanent for the 2009-10 budget. A 90-day freeze (February 2009 Memo) on filling WCPSS Central Services vacancies was extended in February to include the entire school system. Vacant teacher positions have been filled since then with teachers hired on terminating contracts--work agreements that end with the end of the school year or fiscal year.
“At this time in the year, I typically present the Superintendent’s Plan for Student Success: a three-year business plan focused upon the school system goal,” said Burns. “This year we depart from that practice as I recommend to you a budget for one year only. This is the result of the highest level of financial uncertainty I have experienced, not just as a school administrator, but in my lifetime.”
Burns has had discussions with county and state leaders. At the county level, there’s a $14 million shortfall in revenue compared to the current year without adding any additional expenditures. At the state level, Governor Perdue has asked budget managers to consider reductions of 3-7 percent (February 2009 SBE Memo). If implemented, this reduction in state funding would call for between $20-60 million in cuts to WCPSS alone. It is widely anticipated that state and federal budgets will not be approved until after the new school year begins.
Burns says steps taken this year to reduce school system spending will help, but more drastic steps such as filling only 95 percent of the school-based positions for the start of the school year and not rehiring some staff on terminating contracts may be required. Following this action, schools will be prepared for the beginning of the school year while the system will have the financial flexibility to absorb funding cuts and reduce the possibility of staff layoffs once the school year begins. If WCPSS did not take this proactive approach and allowed schools to hire 100 percent of their staff and state and federal budgets experienced shortfalls, lay offs could result.
WCPSS has 1,496 part- and full-time employees on contracts that expire at the end of the school year or the fiscal year. Dr. Burns indicated that the shortfall from state or county budgets could result in the school system not rehiring some staff on these terminating contracts.
"I wish I did not have to implement the steps outlined. Nevertheless, presented today is an incremental strategy designed to carry the Wake County Public School System through these uncertain times. It is realistic, responsible and fiscally sound,” said Burns. “There will be an impact on our employees. There will be an impact on our students. Regardless, we’ll focus on learning for all students. We’ll continue to work as a team to give our students our best every day.”
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