Contact: Dean Jackson
Office of Public Information
Phone: 770.254.2736
Fax: 770.254.2807

Press Release
Coweta County Schools

Date: March 10, 2010

Coweta School Board discusses finances; votes to absorb further expected state furlough days

Vote comes after report that school system is on track for balanced budget despite ongoing cuts

 

The Coweta County Board of Education voted to absorb up to three further employee furlough days passed on by the state through the remainder of the 2009-10 school year.

The Board’s action – taken at their March 9, 2010 regular meeting – allocates local funds to offset up to $1.2 million in cuts expected in this year’s amended state budget, which would be passed down to local systems in the form of further employee furlough days.

The school board approved the motion following a financial report from school system officials that the school system anticipated a balanced budget for the school year, based on current trends. The balanced budget would be achieved despite significant cuts from the state of Georgia before and after the start of the 2009-10 financial year, which led to significant net decreases in the school system’s operational budget below the previous school year.

“Financially, we’re in good shape, and we’ve been careful,” said School Board Chairman Steve Bedrosian. “I’m in favor of absorbing the final three furlough days” during this fiscal year, he said.

Other board members agreed with Bedrosian, noting that all school system teachers and administrators, and most school system support staff, had been furloughed three days without pay during the first half of the school year, after state budget cuts were announced in July of 2009 following the start of the new school fiscal year.

Board member Harry Mullins said that those cuts – distributed throughout a year’s worth of employee pay periods – were significant, but to add another round of unpaid furlough days spread over only a few remaining pay periods this year would amount to very large monthly pay decreases for employees.

They would also cut a number of necessary planning days for teachers, during which lesson plans, report cards and many other requirements are met by teachers, he said.

Mullins noted that the Board had asked teachers, employees and administrators last year to carefully control spending and work through diminished operational budgets. “They did that,” he said, “which has put us in the good financial shape we’re in.”

“We can afford it. Let’s do it,” said Mullins. Mullins said that the decision will help employees, and will also have a positive impact on the local community as well.

The state has not officially approved the additional employee furlough days, and will not until the Georgia legislature finishes an amended Fiscal Year 2010 budget in the coming weeks. Three additional employee furlough days during the current fiscal year ending June 30 are included in current versions of the state’s amended budget and are widely expected.

The school board’s vote followed a report from Coweta County School’s Assistance Superintendent for Finances Keith Chapman that the school system had achieved cost savings throughout the school year that had made up other state budget cuts announced in July of last year.

Last June, Coweta County’s Board of Education adopted a General Fund Budget for the 2009-2010 school year of $172,206,757. That budget (funded principally by state revenues and local property taxes) reflected a net decrease of $3.7 million over the school system’s 2008-09 General Fund budget of $175,931,581.

After the current school year began in July, 2010, the state announced further state budget cuts to school of $1,229,564 (in the form of furloughs for school employees) and $2,221,778 in other funding cuts, on top of the previous year’s spending cuts, reducing the budget by an additional $3.5 million.

Superintendent Blake Bass said that the school system had absorbed the additional budget cuts through postponing some needed expenditures, such as additional school buses, careful budgeting and control of spending. “Our employees and our administrators have done that, and I appreciate it.”

Superintendent Blake Bass had noted that the school system had operated in a balanced budget for several years, despite earlier and current-year state budget cuts, and without raising local property tax rates. Despite economically difficult times, “we are on track to end up in good financial shape for the year,” he said.

Bass also said that the school system has maintained a balanced financial sheet and moderately increased its reserves for five years through conservative budgeting. That has meant that the school system has very slowly added programs and personnel in better financial times, but has also meant that Coweta County has not experienced severe program or employee cuts during more austere times.

The school system has also maintained high academic achievement through those periods, he noted, with all Coweta County schools meeting state and federal academic testing requirements, and school test and achievement measures well above the state average and at or above national averages.

In other budget reports at the March 9 board meeting, financial officer Keith Chapman also reported that school system sales tax revenues were down, to a monthly collection of $1.5 million for the latest monthly collection. The sales tax revenue is derived from the Coweta County School System’s 1-cent Special Local Option Sales Tax, and funds school construction and maintenance efforts, along with other capital expenditures such as school buses and equipment.

Despite the decrease in monthly sales tax revenues, Chapman reported that the school system was on track to fully pay off short-term bonds that borrowed against the current 2007-2010 SPLOST and funded the construction of the school system’s three Ninth-Grade high school campuses and Brooks Elementary School.

“At this rate we should have enough (in collections) to fully retire our bonds by next year,” he said.

“We promised the community that we would do that,” said Board member Mullins. School Board members voted last year to hold off on any further expenditure of SPLOST funds until the bonds were fully retired, to ensure that current collections would be sufficient.

Superintendent Bass noted that that retiring the bonds by next year would leave the school system one and one-half years of further SPLOST collections to fund needed school buses and other capital improvements to county schools.

Close Window