BOE committee views budget options

By: Laura Stuart
Posted 1/7/09

LOXLEY — Baldwin County school board officials met Tuesday night to discuss additional ways to cut millions off an already lean budget while saving jobs.

“The two options we looked at were to either make some cuts in the probationary …

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BOE committee views budget options

Posted

LOXLEY — Baldwin County school board officials met Tuesday night to discuss additional ways to cut millions off an already lean budget while saving jobs.

“The two options we looked at were to either make some cuts in the probationary classified employees for the remaining part of this year or wait to implement it this year,” Robert Wills, Board of Education finance chairman, said. “That is after the staff considers all the ways that we can save money and transfer funds with the ultimate objective of saving as many jobs as we can.”

Wills said the school system would have to eventually cut jobs, but if the system takes as many expenditure reductions as possible before factoring in personnel, the decision could wait.

“We know next year we are going to have to cut teachers, too,” Wills said. “But every year you loose teachers and probationary employees by way of attrition. At the end of this year, we will have a better idea of how many of those people we are going to loose, which means we won’t have to cut those.”

Wills said the he thinks the general consensus of the BOE is to wait to cut probationary employees until the end of the year, but job cuts could not be avoided.

Jean McCutchen, finance director, said the decision before the board was to either focus on the money now and look at staffing decisions at the end of the year or do a combination of the two now.

“We are going to have two to three years of low fund balances,” McCutchen said. “And, we are going to be operating below a desired goals for a couple of years.”

According to board policy, the BOE can operate with less than one month’s balance — $18.5 million — if there is an emergency.

“This is pretty much an emergency,” Robert Cahallan, Jr., District 6 board member, told the BOE.

While the economic troubles seem to have no foreseeable end, McCutchen estimates she may be able to reduce the system’s operating deficit from $10.5 million to around $7 million based on state flexibility in the movement of funds and reductions in non-essential expenditures.

“We continue to work on all allowable flexibilities in moving funds,” McCutchen said. “Central staff will absorb a portion of the cut by analyzing and cutting all non-essential expenditures.”

McCutchen said reductions in non-essential expenditures by central office staff could reduce the deficit to $5.8 million.

“The good news, if it happens, is the governor promised us half of the rainy day fund,” McCutchen said. “But, the additional money from the rainy day fund is not guaranteed.”

McCutchen said she must submit a revamped budget to the state Department of Education by Jan. 31, and she said the state has said she must  base the budget on the governor’s 9 percent proration declaration without the additional half of the rainy day fund.

Superintendent Faron Hollinger will present a cost-reducing package to the BOE at their Jan. 29 meeting for final review and approval.

At that board meeting, the BOE will also address a policy change which could take away the three additional personal leave days available to county teachers.