York County Schools Face $9M Shortfall, Layoffs

By Amber Lester Kennedy Tuesday, January 10, 2012

The York County School Board learned Monday the division faces a $9 million shortfall for fiscal year 2013.

Superintendent Eric Williams called the amount “staggering.” He presented his preliminary budget cut proposals for the board to consider, including the elimination of 44 teaching positions, 13 Para-educators and nine full-time custodians. He also recommended finding new sources of revenue, such as introducing athletic fees for middle and high school students and supply fees for elective courses.

His budget proposals to close the $9 million funding gap were based on the idea the York County Board of Supervisors would approve an increase in school funding of $4.6 million. If the board chooses not to increase school funding, he said the division would have to cut approximately 65 additional positions, which he warned would have a large impact on class sizes. The division’s 2012 budget was $117 million.

Decreased Revenues and Increased Costs

Williams’ numbers were also guided by Gov. Bob McDonnell’s proposed biennium budget, which was released Dec. 19. In his budget, McDonnell called for the largest-ever employer investment in the Virginia Retirement System, aiming to begin repaying contributions deferred in 2010. That will cost York $4.5 million in additional VRS payments.

At this time, the division expects a total state revenue decrease of $1.1 million because the county’s local composite index (LCI) score is set to increase. The LCI score shows a locality’s ability to pay for its education; it is reset every two years, but York County was one of several localities granted a “hold harmless” from the increase in 2010. Localities receive less state funding when their LCI rises.

The division is set to receive $29,000 in impact aid from the Department of Defense, due to its large population of students from military families, but Chief Financial Officer Dennis Jarrett warned the federal government could opt for sequestration, which would rescind that contribution in order to fill holes in the federal budget.

In addition to the increased VRS costs, the division faces a 20 percent increase in health insurance rates, along with benefit changes, totaling $2.1 million. Jarrett said the division’s claims increased from eight claims filed two years ago to 17 claims filed last year. Less attractive health benefits will hurt the division’s ability to attract and retain quality employees, he added.

In his proposals, the superintendent also included a step increase for all eligible staff, which would be the first in three years. A step increase would cost the division an additional $1.2 million, which would be offset by the reallocation of $722,000 that would have gone toward a one-time payment. The school division requested level funding from the Board of Supervisors last year, including money for a step increase, but was sent back to the drawing board when supervisors expressed disapproval of giving pay increases to school division employees when none were given to county employees.

Preliminary Budget Cuts

To help close the budget gap, Williams shared his preliminary list of $4.4 million in cuts, several to personnel. The list included 29 classroom teachers, 9.5 Jobs Fund teachers (the funding does not extend to 2013), 5.5 other teaching contract positions (two reading specialists, two Assessment, Compliance and Intervention positions, one Education Technology facilitator and a guidance position at Tabb Middle), 13 para-educators, nine custodians, one human resources staff position, one Lifelong Learning Center position, 1.5 clerical positions and the coordinator of Adult Education.

He also proposed cutting school supply allocations by $5 per pupil ($69,825); division-funded regular field trips; stipends for National Board-certified teachers and the Committee for Minority Affairs; payment for PSAT testing; schools’ staff development allocations; and funding and staff support for the Zweibrucken, Germany student exchange.

Williams also suggested reducing school bus replacement and eliminating passenger vehicle replacement; eliminating all paid student workers within the division; cut the employee assistance program; reduce costs for recognition ceremonies; and reduce school board office supplies by $5,000.

Proposed User Fees

To raise money, Williams suggested introducing fees for secondary students’ electives and athletics. In both cases, he said some plans will have to be made for low-income students, but the administration hasn’t gotten that far.

The secondary student fees have not been raised since 1986. For a year-long course in an elective, such as art, drama or career/technical classes, students would pay $15; a semester would cost $7.50 and a quarter class would cost $5. Fees would also increase for instrument rentals, band uniforms and drama productions.

The proposed athletic user fee would charge students one fee per season. Middle school students would pay $50, while high school students would pay $60. The total athletic expenses are estimated to be $1 million.

At the end of Williams’ nearly two-hour budget presentation, the board members said that now, more than ever, residents need to contact their state legislators to advocate for more spending on K-12 education. “This impact will affect everyone, not just parents with kids in the buildings,” said board member Mark Medford.

Long-time board member Page Minter said he’d never seen a worse budget outlook. “It’s an emotional thing...seeing how much you’ve accomplished and seeing it all go away,” he said.

The board members expressed a desire to go through the current year’s budget by line items to find potential savings. As a result, the board plans to meet for work sessions on Jan. 18, Jan. 23, Jan. 31 and Feb. 13. A public forum will be held at 7 p.m. Jan. 23 in the York Hall Board Room.

The board will also meet with the county Board of Supervisors in a joint work session at 6 p.m. on Feb. 7 in the York Hall East Room. Williams’ formal budget proposal will be delivered to the board in mid-February.