School taxes down 9%; no layoffs planned — but what about next year?

School leaders will dip into the system’s fund balance (its cash reserves) this year for $1 million to help cover expenses, since revenues are down nearly $1 million.

However, the bank account is limited. And next year reserves aren’t expected to cover any more shortfalls. After several years of deflating revenues, the schools’ reserves are running low. Federal dollars that helped the system avoid substantial layoffs, including $1 million from a Federal Jobs Bill received last fall, will be depleted next year. School leaders project $2.67 million in reserves at the end of this fiscal year.

“We want a minimum of $3 million in there,” said Dr. Allen McCannon, superintendent of Madison County Schools. “To make payroll and pay our benefits is right around $3 million … With the economy like it is, a paycheck being late could cause serious ramifications for a family. So we want to have enough money on hand to make payroll if something gets a little squirrelly in Atlanta.”

Projected revenues for the school system for 2011-12 are $37.5 million, with expenses projected at $39.46 million. That’s close to a $2 million shortfall. The school board is covering half of that shortfall with reserves and the other half with the $1 million from the Federal Jobs Bill.

School officials say the state’s QBE funding formula shows that Madison County should get an additional $4 million for operations this fiscal year. But the state government long ago ditched adherence to the QBE formula, leading to years of “austerity cuts.” McCannon said the federal money helped make up a portion of the austerity cuts.

“We think this budget is going to get us through this year,” said McCannon. “As soon as we heard about the jobs money in August of last year, we took a deep breath for 11-12 and we all just said it’s 12-13 now. The D-Day is the 12-13 budget.”

Expenses for 2011-12 are up $839,085 from last year. Projected fuel costs are up $105,000. But most of the system’s increases — $700,000 — are in personnel. This includes $250,000 in longevity increases for teachers, which are required by law and $314,000 in increased health insurance costs. When federal stimulus money was approved a couple of years ago, the school system used the money to hire special education personnel. Now that stimulus money is gone, but the school system is keeping the special ed positions in place, a cost of $525,000.

“According to No Child Left Behind, kids with disabilities are all supposed to be on grade level,” said McCannon. “To accomplish that, you have to have additional support.”

Meanwhile, McCannon said the school system has made numerous cuts. Projected personnel increases were $2.2 million, but the system cut $1.5 million off that figure.

“We’re looking at our numbers trying to really squeeze them,” said McCannon.

The system will once again impose five “amended calendar days” (furloughs) on staff members, saving the system $900,000 for the year, while costing staff members 2.6 percent of their salaries, McCannon said.

Several central office positions have been reduced to half-time, instead of full-time, such as an assistant superintendent’s position, the transportation director’s post and an accounts payable position. The maintenance supervisor position was eliminated by not replacing the post after a retirement and restructuring of the department.

The Career, Technical and Agricultural Education (CTAE) department at the high school has been reduced a slot. A physical education position has also been cut at the high school.

Other cuts included a parapro position at Comer Elementary as well as the middle school, two half-time EIP positions at Comer, a half-time counselor at Ila, a half-time CBI parapro at the middle school, a half-time PE teacher at Danielsville, a technology teacher at the middle school, a half-time art teacher at Hull and an Ila teacher’s position. The high school registrar and guidance offices were restructured, which cut costs. All of these cuts reduced expenses by $1.532 million.

These cuts were preceded two years ago by a Reduction In Force (RIF) plan that reduced the system’s personnel by 18 positions.

But not all cuts are in personnel. Textbook costs have been cut $32,000, with teachers finding more online resources and Smartboard applications in some instances.

The schools have also eliminated athletic field maintenance contracts. In doing so, the schools have had to construct two maintenance sheds at the athletic complex and purchase some equipment, such as mowers.

“We’re spending right at $50,000, not just on the sheds but on the fertilizer and all the materials we used to contract out,” said assistant superintendent Bonnie Knight. “And we’re saving out of the $160,000 we used to spend a year on contracts for the mowing, the fertilization, the top seeding, the reseeding — and we’re bringing that in-house. So we had to buy some commercial mowers and a commercial sprayer. Long-term we’ll continue to save.”

McCannon said the struggling economy has changed aspects of the school system that people don’t always think about. For instance, he noted that retirements are less and less frequent.

“Teachers aren’t retiring with the economy like it is,” said McCannon.

That means the influx of younger, lower-paid teachers is slower and the cost of personnel remains a little higher because the veteran, higher-paid teachers are hanging on to their jobs longer.

The superintendent said the job market for younger teachers is tough, noting that the system recently received at least 228 applications for two positions at Hull-Sanford Elementary School.

“So now you have a lot of certified staff taking parapro jobs,” he said