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Spotsy school finances gloomy

November 24, 2009 12:35 am

By PAMELA GOULD

With daunting predictions for the next two budget cycles, Spotsylvania County School Superintendent Jerry Hill has been working to get out early warnings to parents and staff about possible pay cuts, staff reductions and increased class sizes.

Last night, the public got its first official chance to weigh in on the financial picture but only one person, Renee Beverly, took advantage of it.

Beverly, a teacher and the Spotsylvania Education Association's representative, provided no input but acknowledged the challenge the School Board and the division face.

"We know the task is mammoth. Teamwork is essential and we'd be happy to work with you," she said.

Board members Martin Wilder and Amanda Blalock expressed disappointment that additional people didn't attend the meeting to offer their input.

"We all know we are in a very, very troubled economic time," Wilder said. "We have a very daunting task ahead of us--the board, the school division--so I would urge members of the public to get involved. Have your voices heard."

"This is the time we need to hear from you," Blalock added.

Over the past several weeks, Hill has held meetings with parents, teleconferences with employees, and sent a memo to staff and parents to spell out what he foresees: a combined shortfall of $9.5 million for fiscal 2011 and 2012.

With those prospects and staff pay and benefits eating up about 87 cents of every dollar, Hill has said pay raises and step increases aren't expected for the next two budget cycles.

"I see the budget turning, but not until 2013," he told the School Board at a Nov. 6 work session.

Teachers last saw a pay increase for the 2008-2009 school year when they got a 2.5 percent cost of living increase that cost the county about $4.25 million, said schools spokeswoman Sara Branner.

In the current year's budget, the School Board avoided layoffs and pay cuts but eliminated 136.4 positions.

An early retirement program offered last spring and federal stimulus funding enabled the school division to avoid layoffs.

The early retirement program saved $1.7 million in its first year, school officials said. The program runs for two more years.

People participating receive a bonus of 20 percent of their salary for three years in addition to whatever retirement pay they have earned.

The goal of the program was to save money and avoid layoffs by voluntary reductions in staff.

Morale among school staff is low as teachers wonder whether they will lose their jobs and how they will pay their bills.

Some said morale fell further upon learning this month that the school division's leader is the top-paid government manager in the Fredericksburg region and that he is participating in the early retirement program, getting a three-year bonus of $140,400.

Hill's bonus is based on his full compensation package of $234,000, which includes a $175,500 salary and annual payments of $12,000 for a car allowance and $46,500 to a tax-sheltered annuity.

The starting salary for teachers is $38,000.

Hill has said early revenue estimates project a $3.4 million shortfall for the next school year and a $6.1 million shortfall the following year.

That data prompted his dire assessment to the School Board and in his Nov. 11 memo.

"This year, the challenge to protect employee positions, salaries and programs will be more difficult than in the past two years," he wrote in his community message.

Last night, Hill noted that the coming budget will be the third straight in which the school division will be tasked with making do with less funding, but it won't be the last.

"We're going to end up with four consecutive budgets where the amount of money to run the school division is less than the year before," he said.

Hill said he has three goals as work progresses on the fiscal 2011 budget: That no employee lose his or her job, that no salaries are reduced and that no furlough days must be required.

"We intend to work really, really hard to avoid any of those things," Hill said last night.

Pamela Gould: 540/735-1972
Email: pgould@freelancestar.com