Monday, February 14, 2011

What's your district's plan?

Districts are all faced with some degree of budget reductions.  Because 80-85% of a school district's budget is personnel salaries, the biggest amount of savings to be recognized will be through personnel reductions.  The degree of budget reductions will depend on a district's current expenditures and anticipated FSP reduction.  Some school districts may be able to endure a temporary reduction because of the amount of fund balance (a district's "rainy day fund").  However, there are many districts in dire straits since they currently have little to no "rainy day fund". 

So what's a district to do? In the state of Texas, salary reductions for teachers, librarians or nurses are not permitted by existing law.   Responding to FSP cuts will vary and can range from asking voters to approve available Target Revenue Entitlement cents, reduce staffing levels, implement furloughs (for staff other than teachers, librarians, and nurses), freeze new hiring, use fund balance, cut programs and staff, or declare financial exigency.

The local media has been inundated with district stories for the past month.  It seems that no local school district will go unscathed.  Tell us your district's story.  What is being considered at this time?

2 comments:

  1. Right now NEISD is considering many items to help trim the budget. The frustrating thing for everyone at this point is the inability to plan until it is known how much money will need to be cut. Typically, this time of year administrators begin planning for the next school year. This is an impossible task at this point; there are many more questions than answers. School administrators are tasked with planning for the worse case scenario. At this point any type of planning will be based purely on speculation.

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  2. Are small school districts exempt from the financial hardships that the state is facing in regard to public education?

    Unfortunately no. Small school districts are feeling similar pressure of cutting current budgets with recommended percentages of 5-15%, which is $420,000 – 1.26 million dollar decrease in this small rural 2A school district. A special board meeting was called on Monday, February 7 where interim superintendent was presenting proposals for budget cuts.

    Initiates regarding the reduction in state aid fund proposed included…
    1. Attrition- a gradual reduction in work force without firing of personnel, as when workers resign or retire and are not replaced. Personnel announcing their intention of not returning the 2011-2012 will be given a stipend of $ 500-1000.
    2. Probationary Contract Personnel- send a notice of non-renewal
    3. Furlough for Employees- Reduction in work days to include administrators, teachers and non-exempt employees
    4. Shorter work week
    5. Proposed discounted electricity rates
    6. Auditing/purchasing regulations

    An administrative meeting soon followed that same week. Campus administrators were given the Reduction In Force Exigency local policy and each campus principal is to make recommendation cuts for their perspective campus at the next administrative meeting. A $ 200,000 cut is proposed for each campus.

    On February 11, 2011 all district employees received a letter from interim superintendent informing them that budget cuts will most likely occur and a balanced budget will need to be adopted for the upcoming school year.

    We are not alone, surrounding rural school districts are sending similar letters to their staff informing them of the financial hardship the public school system is facing. Educators are expressing their fears of uncertainties through social media and modes of communication. School climate and staff morale has been greatly impacted in this small community since the school district is the largest employer in town.

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