The Putnam County School Board approved a new budget Thursday that addresses a significant state funding shortfall while attempting to avoid a local tax increase.
Director of Schools Corby King said the district is facing a $2.5 million decrease in expected state revenue compared to initial estimates provided earlier this year.
“This has been the most difficult budget that we’ve worked through in the six years that I’ve been director,” King said. “We knew that at the beginning of this budget cycle, and I would love to say that things have gotten better, but they have not.”
The approved draft two budget includes several cost-cutting measures, including reducing a proposed $1,500 raise for certified employees down to $500 to meet the state minimum. King said the district will also reduce its substitute teacher line by $300,000 and cut $300,000 from the maintenance budget.
“You can just look at those numbers and realize that what the state requires of us is more than what they are giving us by a considerable amount,” Board Chair Lynn McHenry said. “And that is very common for them and it’s becoming very painful for us.”
The board also voted to pull $100,000 in athletic funds previously given back to high schools to help cover the $128,000 cost of athletic trainers. King said the district is also removing $545,000 in capital projects, including repairs to the Monterey High School bell tower and canopy replacements at Cornerstone Elementary.
“It’s just like owning a home: if you put off repairing something in the home, you kick that down the road,” King said. “We hope it doesn’t get more expensive as it goes on, but you know we’re looking at where do we have to cut and, again, not increase taxes.”
The district plans to use approximately $2 million of its fund balance to help close the remaining gap, which will leave the reserve at about 12 percent. King said while the state minimum is 3 percent, the comptroller recommends 24 percent, making the lower balance a point of concern for district leadership.
“We want to make sure that we meet the minimum salary requirements, but we also want to retain jobs and we want to retain our best and brightest,” King said. “So how do we meet that requirement and retain our people?”
The budget proposal will now move to the Putnam County Commission budget committee for further consideration.
King said he will request the county also contribute $2 million in funding for the school’s capital projects.
I know Mayor (Randy) Porter has a long list of capital projects, I know adding $2 million to that list is a big ask, I’m well aware of that,” King said. “And I’m hoping we can do this again without a tax increase, maybe they can use their fund balance is my hope, but this is what I’m going to ask from the budget committee.”
The TISA funding model is based on student enrollment. As the system continues to lose students to homeschooling, the system has been forced to make difficult cuts, King said.
