Over the past week there has been concern about Chatham County Schools making an additional funding request for the 2011-2012 school year to the Chatham County Board of Commissioners. The following provides insights into this issue.
The Chatham County Schools budget is primarily based on three funding sources: federal, state and local monies. The local portion of the budget was presented in June to the Chatham County Board of Commissioners, and a more complete budget picture has emerged throughout the summer as the state legislature completed its budget. All school budgets are based on projections. The projections become more solid as the summer progresses. It can be as late as October or November before a school district reconciles its annual budget. The original 2011-2012 budget was based on a $1.5 million state discretionary cut and an appropriation of $2.6 million from the district’s local current expense fund balance to lessen the budget impact on the classroom this year. During the summer the state increased Chatham County Schools’ portion of the state discretionary cut by $706,181 for a revised total of $2.3 million in discretionary cut. This was a greater discretionary cut than the district projected.
With a focus on ensuring the school district would be able to meet its operating budget and assuring the stability of the classroom for students returning to school in August, Chatham County Schools moved forward in requesting $706,181 from the Commissioners on July 18th. The additional funding requested was based on the information available at that time. For example, on July 18th the school district did not have the charter school and the North Carolina Virtual Public Schools (NCVPS) costs. Both were less than projected, leaving the school district with more money. Additionally, as the General Assembly concluded its session, it was determined that only the Governor can furlough state employees. Thus, days of employment were added back to several classifications of employees. The credibility of an organization relies heavily on doing what is right. Chatham County Schools based its request on what was most responsible for the children and employees of the school system.
It is unfortunate that the timing of the request has become such a large issue since it diverts attention from our purpose – educating children and young people at high levels. In asking for the money, the Board of Education and our staff took a proactive approach rather than waiting for a crisis to occur. We based the decision to return to the Commissioners for assistance on their response to our budget request in June. Ensuring the district has funds readily available for both ongoing expenses and unanticipated needs is a priority. For example, within the last week, Townsends announced it plans to close October 1, which could directly affect the school district if families move from our community. We have appropriated $2.6 million of our local current expense fund to balance to lessen the budget impact on the classroom this year. Requesting and receiving the $706,181 would have allowed us to move forward without fear of re-organizing classrooms after the opening of school.
Now that we have a clearer budget picture from the state, we have been able to determine we have a small positive margin of approximately $245,915. If the Commissioners had granted the Chatham County Schools request and after the start of school the district found the funds were not needed, the school district would have offered to return the funds, as was the case in the 2010-2011 school year when unanticipated federal jobs funding was received. If the Commissioners had allowed the district to keep its funds, they would have been placed in the Chatham County Schools fund balance to use against the 2012-2013 budget deficit.
The valued partnership the Board of Education has with the Board of Commissioners has enabled Chatham County Schools to weather the economic storm of the past three years better than most school districts across the state. The support of the community is a crucial part of the stability that has been a hallmark of our schools. The patience and understanding of our employees who have so ably centered their attention on our students in the midst of job uncertainty reinforces their commitment to our children and their excellence. We must remain unified in our ongoing quest to provide students with the best education possible. We are committed to preserving and strengthening all of these relationships and thank everyone for their continued support.
We stand ready to do what the Board desires as we demonstrate the forthrightness and integrity of the school system and its leadership. I do feel that someone representing the school system should report back to the County Commissioners in order to explain the circumstances surrounding this matter and answer any questions they may have.
Thank you.
Robert L. Logan
