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Superintendent plans furloughs to offset $27 million deficit

Wednesday, April 7, 2010
(Updated Thursday, April 8 - 5:35 am)

Guilford County Schools Superintendent Maurice “Mo” Green wants the school board to prepare for a potential $27 million budget deficit for 2010-11. He is proposing furloughs and cutting more than 55 administrative positions to cover the shortfall.

Green also wants the school board to ask the county commissioners for $6 million in increased funding.

Green presented his $651.5 million budget to the school board Tuesday night.

The spending plan was built without an adjusted state budget. Legislators approved a biennial budget last year with deep cuts that went into effect this school year, but other cuts kick in during the 2010-11 budget year. Those cuts are projected to cost the district a little more than $9 million.

The $27 million deficit figure includes a $14 million buffer to prepare for a potential state budget shortfall. State tax revenues are lower than projected, and officials believe public schools will be cut again. Green’s team projected a 4 percent cut to state funding.

If state spending is not cut as much, the schools’ deficit will be less.

If those projections are right, Green proposes, among other things, a two-day furlough for employees making more than $25,000 a year. That would save about $3.4 million.

School board member Jeff Belton said the board needs to weigh this issue carefully.

“I can’t help but think about the impact of the furloughs on those at the lower end of the pay scale,” Belton said.

Charlotte-Mecklenburg schools officials are proposing a similar plan, but there are questions about whether school districts have the legal authority to furlough employees.

School board attorney Jill Wilson said she would never endorse something she believed the board wasn’t authorized to do.

Green’s budget proposal leaves open the opportunity to reduce pay among employees instead of furloughs or a combination of the two options.
Dave Owens, who speaks on behalf of many of the district’s classified employees with the Guilford County Association of Educators, said he had workers come to him in tears last year when the state furloughed them for two days.

“Most of your employees are just making $25,000 and have families,” Owens said.

Green looked first to district administrators to make cuts. There are approximately 80 central office positions that could be affected by Green’s proposal.

Many of those positions would be cut outright, with the hope of placing some employees in open positions in the district. Funding for some of the jobs would simply be switched from local money to federal funding.

Despite the budget deficit, Green’s budget proposal includes nearly $600,000 to implement 21 initiatives called for in his strategic plan. Not all the initiatives require funding, and some could be funded through grants or donations.

County commissioners, who have in recent years been at odds with the school board over money, could be called on to fund about $6 million more this year. Half of that would cover increases in operating costs, such as medical insurance, retirement rate increases and a projected increase in student enrollment. The other $3 million would be for school maintenance.

At least one school board member expressed concern about asking for so much.

“I think that might be a little much considering the economic situation we find ourselves in,” said Darlene Garrett.

Commissioners cut $3 million from the $7 million maintenance budget last year.

The school board may have a bargaining chip this year. The school district was awarded about $32 million in federal recovery funding. The school board agreed to allow the first installment of that money, about $17 million, to be applied to school construction bonds, saving taxpayers an estimated $8 million in interest payments. The board could agree to do the same with the second installment of federal funds, saving about the same amount in interest in the hope of winning over support among commissioners.

A joint budget committee of school board members and commissioners is scheduled to meet Thursday.

Contact J. Brian Ewing at 373-7351 or brian.ewing@news-record.com
 

More online

More information about the budget is online here

Comments

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bigj

April 6, 2010 - 9:39 pm EDT

I thought the lottery was supposed to fund all these education. Maybe the lottery is paying out way too much in administration costs.

Daveblakefan

April 7, 2010 - 12:24 am EDT

Thankfully I make enough money that my wife will be able to retire from teaching in about 4 weeks.

michaelgcallahan

April 7, 2010 - 5:55 am EDT

Enjoy your retirement! You have a tough job.

Mike

JoeScott

April 7, 2010 - 5:35 am EDT

Cutting from the top of this mushroom cloud the county's administrators has made over the people who actually work directly with students is better than the other way around.

Also, when you read that Charlotte is losing 600 teachers due to budget cuts and a much larger deficit, I can't help but to say yet again that Mo Green is doing an excellent job.

retiree

April 7, 2010 - 7:52 am EDT

The place to cut is not in the central office staff, or special programs, but is rooted in the multiple layers of administration between Mo and the teachers. How many special titles of people are there above the principals of schools and what do they do? Most of them are probably making close to or over 100k annually and delayering management padding can save tons of money that would avoid layoffs. An example is what Charlotte did many years ago (before Mo). As I recall the new superintendent cut layers of management, eliminated car allowances, told the administrators who were left they had more job duties but no pay increases, and didn't cut any teacher poisitions or programs. That's the way to do things. Cutting 10 administrators who make 100k is better than cutting 20 teachers that make 50k, or 40 clerical staff who make 30k.

casper

April 7, 2010 - 8:45 am EDT

GOOD JOB MOE!!!!

Paul Daniels

April 7, 2010 - 8:48 am EDT

Brian:

Its important to note for the public that things are still very fluid. The legislature doesn't even go into session until next month so the budget estimates that we are working with come from the Superintendant of Public Instruction's Office. While I am not very sanquin about the budget prospects, there is still a lot of work to be done before we know exactly where we will be budget wise. If there is a bright spot in any of this it is that we are once again forced to focus our priorities on the things that matter most.

Also, it is important to note that the proposed furlough is part of Mo's plan "B" which is based on suggestions from the state budget office that may or may not come to fruition. Having said all this, I think Mo and his staff are doing a great job managing the situation.

Best regards,

Paul Daniels,
District 5

JackK

April 7, 2010 - 9:45 am EDT

Paul,

Since all school employees are paid by the state and only the local supplement comes from taxes raised in Guilford County, how can the superintendent or BOE furlough employees and keep the state salary money? Mr. Greene stated in the article that this was a savings, but since neither he nor the BOE raised the money, it seems to me to be more of a manipulated windfall if it flies. Wouldn't the legislature have to authorize you all to do this?

Paul Daniels

April 8, 2010 - 10:55 am EDT

Jack:

A number of our employees are paid for with local money. They are paid just like the employees who are paid for by the state, so no one knows which is which. With everyone being treated the same, regardless of funding source, we try to keep strife to a minimum. With regard to the fine point of your question, Mo's authority to furlough, I will need to get back to you on the specifics.

Paul Daniels

JackK

April 8, 2010 - 12:47 pm EDT

Paul,

I believe the legislature would have to approve localities wanting to furlough state employees--I guess you can do as you please with people whose salary is totally local funds. A second point, I think, would be that if the legislature did approve local furloughs for state employees, could the money appropriated for salaries then be used to plug shortfalls elsewhere in a school board's budget; i.e., salary money used to pay fuel costs, or for supplies, or the electricity bill. Usually, once the money is appropriated for one thing it's really hard to spend it for something else, so that permission would also have to be given. Third, while I understand the good intention of not making the people earning the least suffer disproportionately if furloughed, why a cut-off of $25,000 not $26,375 or some other figure. Teachers who have been in the system long enough began at a salary much less than $25,000 and had their salaries frozen by Gov. Hunt for several years. Now, after many years of devoted service and moving up the pay scale only they will be furloughed? Hardly seems evenhanded or totally fair, if in a furlough scenario any of it's fair.

Frankly, given the hard times on which the state has fallen, I would be very surprised if they gave local BOEs a right they would probably want to reserve to themselves. If state workers are to be furloughed at all, I suspect the state will do it and keep the money themselves. Localities will have to fend for themselves.

Green

April 7, 2010 - 10:15 am EDT

Due to current economic condition, I think parents should contribute a fraction of their income once a year as per the below chart. GCS has 71,000 students = if all of their parents earning is 60K, then GCS can collect 7,100,000 minimum. (7Million to 15Million)

Family Income-- EFC/Year--% of Contribution
$60,000 ==> $100 ==> 0.00167
$70,000 ==> $125 ==> 0.00179
$80,000 ==> $150 ==> 0.00188
$90,000 ==> $175 ==> 0.00194
$100,000 ==> $200 ==> 0.00200
$110,000 ==> $225 ==> 0.00205
$120,000 ==> $250 ==> 0.00208
$130,000 ==> $275 ==> 0.00212
$140,000 ==> $300 ==> 0.00214
$150,000 ==> $325 ==> 0.00217
$160,000 ==> $350 ==> 0.00219
$170,000 ==> $375 ==> 0.00221
$180,000 ==> $400 ==> 0.00222
$190,000 ==> $425 ==> 0.00224
$200,000 ==> $450 ==> 0.00225
$210,000 ==> $475 ==> 0.00226
$220,000 ==> $500 ==> 0.00227
$230,000 ==> $525 ==> 0.00228
$240,000 ==> $550 ==> 0.00229
$250,000 ==> $575 ==> 0.00230

EFC - Expected Family Contribution.
- Also, we should increase the class size to 25 students per teacher.

Badgolfer1

April 7, 2010 - 12:07 pm EDT

If the blogger named Green is actually Mo Green, then this is ironic. As a change in the formula multiple children from a household should mean more money that the household should contribute instead of a flat fee. This makes sense that parents with children in school should be more helpful besides just paying other taxes as this is direct funding for their children to be educated, kind of a user only fee being fair. One problem that I see is if a household has a bunch of income and have children to attend schools, then they probably have their children in private schools and not public schools. Then they are paying even more to have their children educated into the several thousands of dollars, but that is their choice and they can afford it. Another problem is that 71,000 students are mentioned and that is not households as there may be many children from the same family going to school. The $60,000 family minimum income is another problem as used. It could perhaps be lowered to $50,000 or less than that. But there are a lot of federal title one students going to school and they are from poor families and I am unsure of those formulas used giving schools money besides by the federal government already. Having a large percentage of poor families with children going to school in the county would bring the possible collection assumed by blogger Green down rather significantly than the expectations shown here by this possible collection method for supporting schools.

Overall what was presented by blogger Green does have some merit, but needs to be studied and refined. And then would have to be signed off on by government officials.

Gator

April 7, 2010 - 1:55 pm EDT

.

teachertruth

April 7, 2010 - 11:05 am EDT

Yeah, these folks should definitely contribute more....it is not like they don't already pay for 50% of the county to eat two meals a day and actually contribute by paying state and federal taxes on time.......

Linus_61

April 7, 2010 - 11:14 am EDT

What a joke-last year the Governor made them pay back money and they could only take off the time alloted to them if school wasn't in session!!!Stupid idea and a trick for sure-thanks alot

mary16

April 7, 2010 - 1:19 pm EDT

I think that there are very few of us who share the burden of the various taxes that go to provide funding public schools. In my experience, there are many people utilizing services who have unreported income and actually make money that is not taxed in any way. And since there is no record of income, these families continue to Those of us who are property owners and who pay taxes on all of our income because we get w-2s should not have to pay extra for public school education. That being said, I feel that these people who work on a cash basis ( for services,etc, even drug dealing), should be expected to contribute in some way. I am tired of subsidizing people who are constantly cheating the system and adding to their long list of entitlements at my expense. AND if those parents have to take some responsibility for their kids they will be forced into taking more of an interest in their kid's education and they may stop reproducing indiscriminately. Personal Responsiblility is the key here.

Gator

April 7, 2010 - 1:57 pm EDT

To Green
I'll go along with your plan if the administration takes a 40-50 % pay cut for being totally useless. Oh and you fire the 10-20% teachers that are collecting pay checks instead of teaching.

stafford5465

April 7, 2010 - 3:16 pm EDT

Mo seems to take the problems head on. One area he did not address was transportation. Too much, one bus one child business going on. We use 7 million of local dollars for transportation. This is way out of porportion to what ther counties spend.

Paul Daniels

April 8, 2010 - 10:57 am EDT

Joe:

As long as we keep the "diversity" (what ever the heck that means) thing going we are going to spend boatloads of money making sure just the right number of each type of student goes to just the right school.

Paul Daniels

Gridley

April 7, 2010 - 4:28 pm EDT

15 years ago the then superintendant and school board were trying to extort a huge amount of money from the County Commissioners by actually sending dismissal letters to all new teachers, and requiring tenured teachers to submit new applications for continued employment. The resulting firestorm was whipped up by the N&R, of course (the Commission was controlled by Republicans then).Then the Commission stated that they would give the Schools more money - by granting $1.50 to the classroom for every $1.00 cut from administration. The offer was turned down out of hand, and the N&R reported not a word of it the offer. Thank goodness you are giving Green more respect than that - what was only common sense then is still valid today.

ncnole

April 7, 2010 - 5:18 pm EDT

I do applaud Mr. Green's efforts in the past and I do understand that there might be a budget shortfall and that cuts will have to be made. But, let's be honest. The idea of a furlough is basically requiring teachers (and other school employees) to work two days without pay. So, call it what it is: a paycut. There are far too many employees in GCS who don't actually work with students at schools. Go to gcsnc.com and click on Directories. Click around and see how many people are listed under a variety of creative titles. And many of these people who are listed have staff members who are not listed.

igliigli

April 7, 2010 - 6:26 pm EDT

How many taxpayer paid trips to Hilton Head will the coaches take this year?

DaveW

April 7, 2010 - 11:37 pm EDT

I have taught and coached in GCS for 29 years and have never taken a paid trip by taxpayers to Hilton Head or anywhere else for that matter.

Gymnaseum

April 7, 2010 - 9:29 pm EDT

isn't a furlough a day away from work with no pay? How is that requiring teachers to work?

mactam

April 7, 2010 - 10:41 pm EDT

I think the days need to be taken when students are not in school, which means they are teacher work days. These days are often used to prepare assessments and report cards or do planning. These tasks still need to be done so they will in fact be doing the work without getting paid.

ncnole

April 8, 2010 - 8:29 pm EDT

Many, if no most teachers already go in early, stay late, and work at home on both evenings and the weekends. So, if a teacher takes a furlough day on a planning day that work still must be done on one's personal time. That is why so many teachers were offended by the supposed educators' governor Bev Perdue when she furloughed teachers last year. More than anyone, she should understand that teachers already spend many hours outside of the regular workday doing school work.

Paul Daniels

April 8, 2010 - 11:01 am EDT

All:

Here's the thing that doesn't make sense to me (and didn't make sense last year either): The total GCS budget and its operating budget as it now is projected is actually BIGGER than it was last year. This was the elephant in the room at the last meeting and no one followed up on my questions which demonstrated that despite all the talk of "cuts" our budget is actually larger than it was last year, $651 million versus $642 million.

I am disappointed that no one in the media (except the Rhino) has even mentioned this fact. How can we have a public debate on this when there is no scrutiny of the numbers provided?

Best regards,

Paul Daniels

General Greensboro

April 8, 2010 - 11:13 am EDT

Is GCS expected to see an enrollment gain next year? I suspect that's where the answer lies, or at least most of it.

GG

Paul Daniels

April 8, 2010 - 12:32 pm EDT

General:

Yes, we expect about 300 more students.

The point I am making, however, is that the newspaper and everyone else has taken the position that we have a $27 million dollar cut. How can that be when our budget is actually larger than it was last year? We need to explain that although we expect the state's contribution to fall, the actual size of the budget is larger because we get money from a variety of sources, including the Feds. I think that this failure probably is by design and is meant to encourage the public to get up in arms and demand that state and county governments provide more money.

Best regards,

Paul Daniels

JackK

April 8, 2010 - 12:55 pm EDT

Paul, Just keep watching the middle shell and have a handful of dollar bills to put on the table. More is actually less, at least in some instances in quantum mechanics, I think; watching the presentation on TV that you had to sit through with the hard copy in hand made my eyes water and my head hurt, so I can only imagine what it's like in person. When I was working on a doctorate in symbolic logic, we always referred to that kind of figuring as Bulgarian logic; i.e., no logic at all. Sort of like having a conversation about the present king of France.

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