Cobb County schools superintendent Michael Hinojosa on Wednesday proposed cutting teaching positions, slightly increasing class sizes, furloughing employees and delaying raises to address an estimated $86.4 million budget shortfall next year.
Leaders have been at a crossroads on how to deal with an anticipated 10 percent shortfall in its budget. For years, the district has avoided controversial decisions such as layoffs and ending student services by pulling money from leftover sales tax and the school district’s savings account. Most of those funds are now depleted or at dangerously low levels.
The school board didn’t take action on Hinojosa’s proposals Wednesday. It will reconvene at 2 p.m. Monday to continue the discussion.
Two weeks ago, board members rejected Hinojosa's proposed budget cuts, which included pulling $22.2 million from the fund balance reserve, getting rid of 295 teachers through attrition and raising average high school class sizes by three students. The moves would have too much of an effect on classrooms, the board said.
More controversial suggestions, such as axing transportation for thousands of students and outsourcing janitors, were absent from Wednesday’s list. Board members have the option of placing those cuts back onto the final list.
In Wednesday’s proposal, Hinojosa proposed getting rid of 226 teachers through attrition, raising middle and high school average class sizes by two students and fourth and fifth grade class sizes by as much as one student.
Hinojosa also recommended cutting postage, recruiting, travel and professional development budgets.
In addition to taking about $22.2 million from its savings, and $10 million of leftover general funds from this year’s budget, the board has the option of using $8.8 million it unexpectedly received from the state recently to avoid cuts.
That sort of financial finagling, coupled with temporary maneuvers such as stalling pay raises, would mean the board would start out with a $65 million deficit next year, said Brad Johnson, the district’s chief financial officer. That amount could rise if the state decides to again cut the amount of money it gives to local school districts.
“The more cuts we make now, the easier next year’s budget will be,” Johnson said.
The district’s fund reserve balance, a sort of savings account, currently has about $100 million in it right now. If the board goes with Hinojosa’s most recent proposal, that fund will dwindle to $71 million, enough to keep the district afloat for barely a month in the case that an emergency arises, Johnson estimates.
The board’s policy advises that the district “strive to maintain” at least 30 to 55 days worth of contingency funds in its budget.
“That’s a big red flag when we use one time money for reoccurring costs,” said board member David Morgan. “That just digs a deeper ditch come 2014.”
Board member Scott Sweeney called the move “fiscally irresponsible.”
But board member David Banks, who distrusts the administration’s math, said fund balance reserve should be used now to preserve the classroom.
“I can take this budget, and I can balance it without laying off any teachers or administrators,” Banks said.
“We acknowledge that the ship is taking on water and acknowledge that we don’t’ have enough money to keep bailing us out,” said board chair Randy Scamihorn. “I hope we can use the money we have to stave off the ship from sinking. But we always want to be financially sound and we want to work toward that.”
The board is expected to vote on the budget at next month’s meeting.
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