Board Approves Plan For 2013-14 Budget

-from The Sturgis News

CLICK HERE for PowerPoint of Plan for 2013-14 Budget

Like most school districts throughout Kentucky as well as the entire nation, Union County is facing severe budget cuts. During Monday night’s school board meeting, Superintendent Patricia Sheffer presented a plan to help offset some of the revenue losses the district faces in the 2013-14 school year and beyond.

In her presentation to the board, Sheffer noted that the Kentucky Department of Education has cautioned districts to “be conservative when writing next year’s budget.” In a recent KDE webinar, districts learned that this year’s sequestration will include at least five percent cuts to the state each of the next ten years--unless Congress makes a move to reverse the cuts they already have in place. While the full effects of the sequestration are not yet known, districts expect to learn in May exactly how much money will be funneled from the federal government, but Sheffer cautioned the board to “expect across the board cuts to many federal programs including Title I, Title II grants, special education and federal pre-school programs.” She added that the anticipated federal cuts paint an even darker picture for Union County “as we face cuts already made at the state level. ”While funding decreases, expenditures for services including transportation, supplies and equipment decreases, the superintendent said, noting that fuel costs are unpredictable and the district must continue to increase their input for employee retirement. She also reported that districts will receive no increase in Support Education Excellence in Kentucky (SEEK) funding, a move that will also greatly decrease the district’s budget.

The situation created by sequestration will result in the loss of positions locally. Sheffer presented a chart showing the board the effects of a ten percent reduction in funding through 2016 via sequestration. Those funds include a loss of over $330,000 in Title I, Title II, Special Ed and federal pre-school over the next three years with Title I funds dropping from nearly $600,000 to just over $140,000 in that period and Title II suffering a funding loss of over $102,000. Special Education is projected to be cut just over $400,000 while federal preschool will see a $42,000 loss. The figures Sheffer presented reflect a “worst case scenario”, she said, but added that cuts are likely for the next ten years as the federal government works to cut the nation’s deficit.

The superintendent also reported that federal stimulus money the district received in 2009 have been depleted. Those monies were provided for two years and allowed Union County to increase staffing by adding 13 certified teachers and 12 classified positions. That $3,300,000 is no longer available to the district. Sheffer also presented information regarding state projects and funding cuts the district has faced over the last six years. School districts in Kentucky have not received any textbook funds since 2009, and prior to that textbook funding was provided only for grades K-8. Professional development funds have dwindled from $49,129 in 2008 to $9,056 for the present year.

The amount the district will receive for 2014 is still unknown, yet demands for training for teachers and administrators are even greater than they were in 2008. Extended School Services funding has been cut from $127,00 in 2008 to just over $44,900 in 2013 with districts still “in the dark” as to how much ESS money will be available in the coming school year. In total, student services financial cuts from 2008 to 2013 that totaled $201,297, and the picture remains dreary going into the 2013-14 school year. “Despite these cuts, these services have to continue for students,” Sheffer said noting that the ESS cuts especially have a direct impact on student achievement.

The superintendent also addressed other funding concerns. In recent years, each school has had a registered nurse and an assistant in place daily. In 2011-12 the cost for that service was $55,000, but in 2012-13 grew to $85,000 with the three assistants’ positions being cut in March 2012. Sheffer noted that the anticipated cost for nurses in 2013-14 is expected to be $175,000, an amount the “district simply can’t afford.” Sheffer said she is looking at different options for the district for health services, but will notify Green River Health Department that the district cannot afford to pay for this health care service.

Several months ago, districts throughout the state learned of a short fall through KISBIT, their state insurance trust, and each district was billed accordingly. Locally, Union County was assessed $298,000, which will be paid to KISBIT over a 20 year period. In SEEK funding, the state has provided no increase for employees’ salaries for the last for years; however, the district salary schedule provides for step and rank increases, money which comes from local funding. Sheffer presented projected step and rank cost to the district from 2012 through 2016. Those increases are anticipated to increase the budget by $704,136 during that time frame. Sheffer said, “Unfortunately, the government loses revenue, staff loses jobs, and students have fewer resources.” She added that locally “We are forced to reduce our working budget, but we will remain focused on our core competency or teaching and learning and be committed to providing a quality education to our students.” She added that Union County will begin staff reductions at the district level. “I will not cut at the school level until we have looked at the district level first,” Sheffer emphasized.

The superintendent made a number of recommendations to reduce the district budget for the 2013-14 school year. Those cuts include:

five days reduction for all directors/coordinators, a savings of $14,990
RtI district position, a savings of $61,935
reduction of one district GT position (combine high and middle school), a savings of $45,000
reduction of all instructional coaches by five days, a savings of $6325
close Sturgis after school childcare, a savings of $25,765
reduction of dental benefits, a savings of $108,432
reduction of the percentage of 401K/403B, a savings of $93,091
reduction of the number of busses purchased annually--typically the district buys three buses at a cost of $85,000 per bus.
Other cuts are likely to include staff with Sheffer recommending the district return to the basic staffing allocation. Staff reductions would include: Morganfield Elementary--2.5 teachers and 1 aide; Sturgis Elementary-0.5 teachers and two aides; Uniontown Elementary-3.5 teachers and 1.5 aides; UCMS-3 teachers and one secretary; UCHS-2 teachers. The reduction of 11.5 certified positions and 5.5 classified positions would provide a reduction in salaries of $623,986. In recent years 86 percent of the district budget has been used for salaries; the proposed reductions drop that percentage to 82 (the state recommends 80 percent or under).

In total, the superintendent recommended budget cuts of $979,524, just $20,000 shy of a one million dollar budget reduction for 2013-14. Sheffer also told the board she would recommend leaving the UCLA principal’s slot and one maintenance position vacant in a cost savings measure. She also noted that it will be wise for the board to take a four percent tax increase for 2013-14, but added that matter will be discussed further during a work session. “This is where we stand,” Sheffer said. She added that she will take the plan to each school and talk with personnel. The superintendent noted that while the budget cuts include a number of staff, attrition and other moves may keep the number people cut down substantially. The board approved the plan with Jim Ricketts noting, “It’s tough times, and you have to make tough decisions. You (Sheffer) and your staff have done a good job in making these decisions.”