Agenda - 04-26-2012 - Attachment 2

Browse Search

3 Orange County Schools 200 East King Street Hillsborough, ETC 27278 G.Patrick Rhodes (919)732-8126 Telephone Superintendent (919)732-8120 Fax Revised 4/10/2012 www.orange.k12.nc.us Superintendent's Budget Message 2012-2013 State and federal budget cuts continue to play a major role as declines in state and federal appropriations continue on ue to squeeze school system operations. For Orange County Schools,this will be the fourth year in a row we have been subjected to massive state budget cuts. This year's reversion(funding we are required to return to the state)is an all-time high of$2.5 million. Since 2008,Orange County Schools has been forced to send a total of$7.4 million back to Raleigh. Sadly,these cuts represent a statewide cut of $417 per student and North Carolina now ranks 48b in the nation in per-pupil funding. Federal appropriations to the district will also drop$1.66 million, as the EducationJobs funding ends and our Foreign Language Assistance grant funding has been eliminated. As a result of these cuts,the total projected funding shortfall for 2012-13 is over$4.4 million. To avoid negatively affecting direct classroom services,the system has cut 16 district-level positions,not filled vacant teacher assistant positions, and cut expenditures in multiple areas. Since 2008,we have cut 36 employees from our workforce while increasing our enrollment by 350 students. Furthermore, state funding cuts have not allowed us to fill 49 other school-level positions. Next year,according to state projections,we expect to serve an additional 148 students. We have made all the cuts we can make. Contrary to state and federal appropriation pullbacks, the Board of County Commissioners has continued to provide stable operational funding support to the schools and has funded growth due to enrollment. Out of 115 North Carolina school systems, Orange County Schools ranks 107"'in federal funding, 79h,in state funding,and 4']'in local funding. Over the past three budget cycles,the school system has not requested an increase in local per-pupil funding. We have absorbed state budget cuts by reducing staff levels and cutting district-level program budgets. Looking ahead to the 2012-2013 budget year,these declines in revenue are accompanied by higher costs due to state-mandated increases to health insurance premiums and retirement contributions. The increased costs and state-mandated increases are listed below: Local Cost Increases(due to state mandates) Employee Retirement Contributions(from 13.12%to 14.31%) $ 170,000 Health Insurance Cost Increases(up$261.00 per employee) 55,000 Utility Rate Increase(approved by State Utilities Commission) 55.000 Subtotal—Mandated Increases $280,000 Federal Fundina Cuts As noted earlier,two essential federal appropriations to the district are being cut to zero. Funding for Education Jobs and the Foreign Language Assistance Program were specifically focused on providing school-level instructional staff by paying for 38 teachers and 1 teacher assistant. This loss of$1,658,358 must be replaced if we are to continue providing these important classroom services.