County schools to receive $2.66 milion less from state, but no layoffs planned

The good news: The system doesn’t expect layoffs.

With the state budget being passed — yet still unsigned by Gov. Sonny Perdue — McGhee was able to give the board of education (BOE) a clearer picture of next year’s budget outlook at Tuesday night’s meeting.

In addition to the $2.66 million revenue shortfall, Madison County will be required to pay $1.5 million more in personnel expenses in 2010-2011 when regularly scheduled state salary increases and retirement costs are factored in.

McGhee said the system can use $1 million of its fund balance to attack the deficit but must protect the remainder of its reserves since 2011-2012 is shaping up to be another lean budget year.

Cost-cutting measures for 2010-2011 include enacting five furlough days (Madison County calls them amended calendar days) to save the system $900,000.

Though no one is expected to lose a job, the system won’t have as many teaching positions next year.

Based on regular state class size allotments, the school system was able to eliminate six-and-a-half teaching positions and save $519,000. With new, more lenient state class size allotments being applied, the school system can reduce five more teaching slots and save $262,500.

The system will be able to handle these cuts through attrition, rather than layoffs, by not re-staffing the positions of those retiring or resigning. Sixteen teachers are not returning for the 2010-2011 school year.

Madison County will actually have to hire five teachers next year.

The BOE, which approved all contracts for next year at Tuesday’s meeting, will explore all its cost-cutting measures at a May 25 work session and vote on a tentative budget at its June 8 meeting.

The final budget vote is slated for June 29 at a called meeting at 6:30 p.m. A 6 p.m. public hearing will precede the budget vote.