York School Division Braces for Possible Cuts

By Amber Lester Kennedy Wednesday, December 08, 2010

In the past two years, York County Schools has been able to chip away at its expenses without having to lay off any teachers. But if the worst budget forecast comes true, that could change in the coming budget season.

York County Schools Chief Financial Officer Dennis Jarrett gave the school board the best- and worst-case scenarios for the 2012 budget at a work session on Monday night. School divisions, along with government agencies across the state, are bracing for the release of Gov. Bob McDonnell’s amendments to the biennium budget on Dec. 17.

Earlier this year, McDonnell asked all state agencies to prepare contingency plans for a 2 percent, 4 percent or 6 percent cut in state aid. In York County, a 2 percent cut would cost the division $1.1 million in state aid; a 4 percent cut would be a loss of $2.2 million; and a 6 percent cut would be a loss of $3.3 million.

York’s current operating budget is $115 million, not including federal stimulus dollars or adjustments for inflation. In the past two years, the division has lost $11.5 million in state funding and the total operating budget has dipped by $9.4 million. Over that time, the division has cut 47 positions, including 10 unfilled teaching positions last year. Jarrett reminded the board that employees haven’t received pay increases in that time, either.

Jarrett gave the board a primer on the variables that will affect the next year’s budget. York County’s enrollment is projected to decrease by 190 students, which will cost the division about $750,000 in state revenue. Last year, the General Assembly voted not to increase the Virginia Retirement System rate, but approved an increase of 1.23 percent for fiscal year 2012. If that proposed increase carries, York will lose another $844,000.

York’s state funding might also be affected by changes in the Standards of Quality that dictate the minimum amount of programming school divisions must provide. The General Assembly is supposed to revise the SOQ in the upcoming year; theoretically, the SOQ is revised to determine how much it will cost the state and localities to fund the standards. Jarrett said he feels it has become a “balancing tool,” however, noting that schools did not receive any funding for textbooks this year. He doesn’t anticipate the state will fund all of the standards required.

Several other variables are unknown, such as the possibility of impact aid coming from the federal government and the potential impact of Western Refining’s closure of its York County oil refinery. The amount of funding coming from the county is also unknown at this time.

The division has new expenditures to consider, as well. York County will have to add costs for utilities, including increasing its bandwidth; add at least five special education teachers to meet requirements; and address general price increases, such as technology costs and athletic trainers.

Jarrett gave the board a preliminary list of possible areas to cut if reductions were unavoidable. The list included central office staff, contractual services for instruction and operations, custodial/maintenance/technology staff, equipment and bus purchases, bus fuel, para-educators, staff development, teachers with an increase in class size, technology refurbishment and textbook/supply purchases. For every category, he listed the cons, noting that central office staff, maintenance staff and equipment purchases have already been whittled down to the point that little is left to cut. Staff development, he said, had probably been cut by 50 percent in the past two years. The only item on the list that hasn’t been touched is teaching staff.

“We’ve really tried to protect this,” he said, pointing to the bullet point for teachers. If the state funding reductions lean closer to the 4 or 6 percent cuts, however, the board will have to look in that direction, he said.

On Dec. 17, McDonnell’s office will release his amendments to the biennium budget adopted last year. That budget will form the basis for Superintendent Eric Williams’ budget. On Jan. 10, 2011, the school board will have a work session to discuss the budget for fiscal years 2011 and 2012, followed by a public forum on Jan. 24.