Proposed Budget Includes Furlough Days

Employees of may be asked again to take three furlough days during the 2011-2012 school year.

"I wish this budget was a feel good budget, but it's not," Assistant Superintendent of Financial Operations Randy Morrison told the Oconee County Board of Education during a presentation about the fiscal year 2012 budget on Monday.

The district's teachers have borne the brunt of declining state education funding in recent years, Morrison said -- facing increased class sizes, no pay raises, forced furloughs and increased costs to cover benefits.

"At some point in time that needs to change, and hopefully it will change in the next couple of years," Morrison said. "Until that time, our challenges are ahead of us."

In his presentation, Morrison urged the board to spend conservatively in fiscal year 2012, which begins in July, so some money is available at the start of fiscal years 2013 and 2014 to avoid emergency borrowing to pay for operational costs from July through October of those years.  It is the busiest time because of start-up costs for the school year and the early onset of local tax collections, he said. 

Borrowing is something the school board hasn't had to do since the early 1990s, Morrison said on Wednesday.

There are sufficent funds for 2012, but the board must plan ahead.

"We can be short-sighted and take all we can for fiscal year 2012 [and] the result would be problematic for fiscal years 2013 and 2014," Morrison told board members.

Projected revenue for 2012 shows a total of $2.3 million less than what is needed for operations headed into 2013, which Morrison attributed to a lowered property digest (by 9 percent), lack of federal stimulus funds, a slight decrease in enrollment and therefore less state funding, austerity cuts -- temporary reductions in state funding -- and increased contributions from local school systems statewide to help fund basics of education for less fortunate systems.

To help offset the shortfall, the tentative budget of $52.6 million with an unrestricted fund equity of $7.7 million -- money that will carry over from 2012 into 2013 to pay for operating costs in July to October -- includes three furlough days for all 899 employees.

The furlough days will save about $650,000 for the year, Morrison said, and take about $80 to $150 a month from teachers' paychecks.

"Let's say we do keep the three furlough days in there, we're still looking at about $2 million that we're short," Chairman David Weeks said.

"That money has to come from either reducing expenses or new revenue sources," Morrison said.

This year was the first time furlough days were used to balance the budget.

"This time next year is going to be difficult," Weeks said to Morrison. "We appreciate you looking out -- not only for this year, but for also for the upcoming years -- because that is how you have to be in these economic times."

The board unanimously approved the fiscal year 2012 tentative budget.  Board members must take action in June in order for the system to continue operations in July, according to Morrison's presentation.  The board will recommend millage rates after the local property digest is gathered in July.