| Calhoun Schools Superintendent Tim Woodward last week reported a $1.8 million deficit, a financial situation that critically affects the systems operation without major cutbacks, or some relief by taxpayers passing a levy on Nov. 4.
School board members seem to have been caught off-guard with the announcement, at least the severity of the deficit, with board president Steve Whited assuring the public everything will be done to correct the problems and provide eduction to Calhoun kids.
Whited said the reasons for the deficit are simple, yet the explanation is difficult to understand.
Whited offered this explanation:
REASON
· $325,000 - $350,000 shortfall already established in state aid formula in mandated areas and ratios. Began year underfunded by this amount.
· $300,000 an additional shortfall from the previous budget year in state aid formula due to loss of students, and other aspects such as State budgetary reductions from the legislature.
· $200,000 - $300,000 the local expense for the new Arnoldsburg Elementary School.
· Total of around $825,000 the approximate year loss or unfunded expenses
EXPLANATION
· Staffing ratios and mandates such as requirements for elementary school staffing, required core subject staffing, without account to number of pupils. We must provide by code certain staffing, even though we may not have the number of pupils to support.
· Change in student population. This has declined, as you know, for many years. A reduction of around 220 since year 2004 (an equivalent of $1,200,000 in State aid formula funding), yet all of these student losses do not come from the same grade. One might think a simple cut in staff would be adequate, but again due to staffing ratios, this cannot occur.
· Year by year loss of State aid funding. The only exception came in the mid 2000's with ARRA funds.
· OPEB liability. Several years ago, I believe around 2007, state agencies were required to begin assuming (recognizing) the State liability for retirement. As unjust and wrong this is, it happened. The State liabilities were shifted to counties.
We begin each year by being underfunded by over $300,000.
So essentially we are in the hole from the start.
Our mandated areas of expense exceed 86%, meaning we have no choice or much say in changing 86% of our costs. The remaining amounts are mainly determined by factors we have little control over such as utility costs, buses breaking down, HVAC systems going out, leaky roofs, substitute costs, supplies, books, and the list goes on.
We have however began cost cutting measures (elimination of supplemental pay, reduce number of days for personnel over 200 days), once we started to comprehend the magnitude of the situation, and that is where we are today. The current fiscal year has begun with over $400,000 in cuts, but as mentioned before, we are already beginning $300,000 in the hole, so in reality this is only a $100,000 savings.
There are several drastic measures we can take, cut non-mandatory classes such as drivers Ed, PE after 9th grade, choir, band, home economics, most of our electives. Athletics could be cut, we could increase the class size at the high school level, which I believe would only lead to a decrease in student performance.
The levy, although it would be a minor percentage of our budget, certainly would assist us in providing the level of staffing and support that is necessary to provide a quality, well-rounded education to our students.
I personally believe, and it has been identified by the State, that the State Aid funding formula is flawed.
Rural counties with low enrollment were suppose to have been funded as if they had 1,400 enrollment.
The students of Calhoun County deserve all the opportunities in their education just as any other student in WV.
I do realize that the past has not been to kind, and is upsetting, but we cannot dwell on that past, we must hit this head on, and I believe that we are. We must continue to try and fill gaps, look at unique opportunities and ways to save money.
We do not want to do this at the expense of our children, not receiving the best all-around educational experience.
I know many have asked how can w get into such a situation.
Well, we're here, and we are forging through this, but we will not climb out overnight, nor can we climb out alone.
Regardless of the current deficit, we are and will continue to make difficult decisions.
I know that the board's is responsible, and must stand up.
We will not make excuses, but we will move forward and face this head on. The two new board members are really at a disadvantage, as this all happened prior to their tenure.
I can't say enough about Tim Woodward (superintedent) and what his presence in this short period has meant.
All the staff of the system have sacrificed, and I know this is difficult on them in many ways, yet they are still doing their job and moving forward.
MORE TO FOLLOW: School Board Members Comment
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