Superintendent Calls for $20 Million in Central Services Budget Cuts for FY 2010-11
Superintendent's Journal
November 19, 2009 - Facing a potential funding gap of $20 million for the next fiscal year, this afternoon WCPSS Superintendent Del Burns called for his senior management team to prepare plans for cutting its Central Services operations.
In a briefing for reporters, Burns outlined anticipated cost increases and revenue declines for the fiscal year beginning July 1, 2010. "We are in the midst of our budget planning process and given what we see in the leading indicators, we must take proactive steps now to address the problem of rising expenses and decreasing revenue," said Burns. "As we did last year, as information became apparent regarding our financial situation, we made decisions to absorb the impact. This year, we are trying to avoid going back to the classrooms for cuts."
The changes the school system must prepare for include:
- $8 million in discretionary cuts in state funding as part of the second year of the biennial budget;
- an anticipated increase of $6 million in employee retirement, hospitalization, dental insurance and local salary supplements;
- a reduction of $3 million available from system reserves to balance the budget; and
- unknown expenses associated with growth and new schools.
"In our current budget, more than 88 cents from every dollar is spent directly in schools," Burns said. "The remaining 12 cents goes to the business functions that support our schools, such as human resources, technology support, maintenance and payroll. There will be an indirect impact on our schools, however we will do everything we can to mitigate that impact."
Burns directed his leadership team to develop and submit the reduction plans. Burns will then review them, make any revisions and include them in his budget recommendations which are slated to be presented to the Wake County Board of Education in early March. The school board will work through the recommendations and submit their request to the Wake County Board of Commissioners by May 15.