| [January 14, 2009] |
Budget faces $1 million cut: Shelton skeptical of cigarette tax's chances to pass
(Messenger-Inquirer (Owensboro, KY) Via Acquire Media NewsEdge) Jan. 14--Daviess County Public Schools is set to slice $1 million from its budget with a little more than five months left in the fiscal year.The districtwide cuts will mean a freeze on extra time or overtime except for emergencies; job-required-only travel, limiting purchases and a moratorium on any field trips in which students are not competing except for those for which money for tickets already has been advanced.
roceeding now will give the district a leg up if the state mandates midyear cuts and will help prepare it for a projected leaner budget in 2009-10, Superintendent Tom Shelton said Tuesday.
Shelton and Financial Services Director Matt Robbins shared highlights of a draft plan during Tuesday's routine luncheon meeting held at the central office.
The plan, which includes many more spending cuts, was developed by the superintendent's top administrative staff with proposals from their respective department heads.
Shelton asked for the revisions Dec. 1 after Commissioner of Education Jon Draud told districts that Gov. Steve Beshear was considering a 4 percent cut from departments this year to balance a $456 million revenue shortfall.
Beshear has since asked lawmakers to raise the cigarette tax by 70 cents, but that plan's passage is doubtful, Shelton said.
"The current proposal is to take $7 million from K-12 and $1 million from KDE (Kentucky Department of Education) and $6 million from the textbook grant, but all of that is contingent on the governor's cigarette tax proposal," Shelton said. "... If that proposal doesn't take place -- and we won't find out until March -- it will be too late. We felt like we should go ahead."
A 4 percent cut would take $2 million from the current DCPS budget.
Shelton and staff started communicating the budget cuts this week.
Two goals for the district were to minimize the impact on instruction and not to eliminate jobs in the current fiscal year, Robbins said.
Other financial realities also are pointing to a need to tighten the district's belt, officials said.
"We're only getting 80 percent reimbursement for transportation costs, and we spend $7 million per year," Shelton said. "We also took a cut in state grants. ... We've already experienced two cuts this year; any additional will be a third cut."
Kentucky school districts also have been tagged with paying for the new student information system, Infinite Campus, Shelton said. That is a $60,000 to $70,000 unplanned cost for Daviess County.
In addition, the district is about $300,000 behind on investments and may not receive as high a collection rate on property taxes this year because of higher unemployment, Robbins said.
Shelton also told administrative staff that they will work on developing "zero-based" budgets for 2009-10. That means they will start from zero to build their spending plans.
Daviess County also is facing a $300,000 increase in the amount it matches for the classified employees' retirement fund and will be required to provide a 1 percent raise and step increases for years of service and education to all employees.
Other cuts include the gradual elimination of door-side pick-up and drop-off of students within subdivisions and reduction in the tuition reimbursement program and elimination of existing employee YMCA memberships.
Two board members praised the staff work that went into identifying the spending plan.
"The bad part is that you're forced into a corner to do things," Frank Riney said. "The good thing is that you looked at it all to find reductions. I appreciate the efforts you've gone to; it's probably been needed."
As the percentage of the state's budget has lessened for education, "that has caused us to come to you to approve tax increases," Shelton said. "I know that hasn't been easy. In the current economic times, I don't feel like we can do that this year. We're trying to prevent that."
Board member John Ed Dunn said he would be in favor of a resolution that supports the staff's budget revisions, but he also reminded Shelton that "it's a working plan that has to be executed."
"Billy Gillispie had a plan to win against Louisville, but the players had to execute the plan," Dunn said. "... We have until June 30; that's our 40 minutes."
He suggested that staff names should be attached to each of the department categories for accountability, and the progress should be monitored.
"You hear all the time people say that we have to live within our means. ... I assure you this will be appreciated," Riney said.
Shelton said district staff will begin implementing the plan Friday. That also is when letters will go out explaining the reductions.
The board is expected to adopt a resolution to support the plan at Thursday's 6 p.m. meeting. It is not required to approve it.
Shelton and Financial Services Director Matt Robbins shared highlights of a draft plan during Tuesday's routine luncheon meeting held at the central office.
The plan, which includes many more spending cuts, was developed by the superintendent's top administrative staff with proposals from their respective department heads.
Shelton asked for the revisions Dec. 1 after Commissioner of Education Jon Draud told districts that Gov. Steve Beshear was considering a 4 percent cut from departments this year to balance a $456 million revenue shortfall.
Beshear has since asked lawmakers to raise the cigarette tax by 70 cents, but that plan's passage is doubtful, Shelton said.
"The current proposal is to take $7 million from K-12 and $1 million from KDE (Kentucky Department of Education) and $6 million from the textbook grant, but all of that is contingent on the governor's cigarette tax proposal," Shelton said. "... If that proposal doesn't take place -- and we won't find out until March -- it will be too late. We felt like we should go ahead."
A 4 percent cut would take $2 million from the current DCPS budget.
Shelton and staff started communicating the budget cuts this week.
Two goals for the district were to minimize the impact on instruction and not to eliminate jobs in the current fiscal year, Robbins said.
Other financial realities also are pointing to a need to tighten the district's belt, officials said.
"We're only getting 80 percent reimbursement for transportation costs, and we spend $7 million per year," Shelton said. "We also took a cut in state grants. ... We've already experienced two cuts this year; any additional will be a third cut."
Kentucky school districts also have been tagged with paying for the new student information system, Infinite Campus, Shelton said. That is a $60,000 to $70,000 unplanned cost for Daviess County.
In addition, the district is about $300,000 behind on investments and may not receive as high a collection rate on property taxes this year because of higher unemployment, Robbins said.
Shelton also told administrative staff that they will work on developing "zero-based" budgets for 2009-10. That means they will start from zero to build their spending plans.
Daviess County also is facing a $300,000 increase in the amount it matches for the classified employees' retirement fund and will be required to provide a 1 percent raise and step increases for years of service and education to all employees.
Other cuts include the gradual elimination of door-side pick-up and drop-off of students within subdivisions and reduction in the tuition reimbursement program and elimination of existing employee YMCA memberships.
Two board members praised the staff work that went into identifying the spending plan.
"The bad part is that you're forced into a corner to do things," Frank Riney said. "The good thing is that you looked at it all to find reductions. I appreciate the efforts you've gone to; it's probably been needed."
As the percentage of the state's budget has lessened for education, "that has caused us to come to you to approve tax increases," Shelton said. "I know that hasn't been easy. In the current economic times, I don't feel like we can do that this year. We're trying to prevent that."
Board member John Ed Dunn said he would be in favor of a resolution that supports the staff's budget revisions, but he also reminded Shelton that "it's a working plan that has to be executed."
"Billy Gillispie had a plan to win against Louisville, but the players had to execute the plan," Dunn said. "... We have until June 30; that's our 40 minutes."
He suggested that staff names should be attached to each of the department categories for accountability, and the progress should be monitored.
"You hear all the time people say that we have to live within our means. ... I assure you this will be appreciated," Riney said.
Shelton said district staff will begin implementing the plan Friday. That also is when letters will go out explaining the reductions.
The board is expected to adopt a resolution to support the plan at Thursday's 6 p.m. meeting. It is not required to approve it.
Link: http://www.tmcnet.com/usubmit/2009/01/14/3913459.htm
