How will Georgia budget cuts due to coronavirus affect Columbus area school districts?
Two weeks ago, Georgia budget officials in the governor’s office and the legislature instructed state agencies to start formulating fiscal year 2021 spending plans that would cut 14% from their current budgets.
The state’s economy has crashed during two months of stay-at-home restrictions implemented to lessen the spread of the deadly coronavirus pandemic.
For example, Gov. Brian Kemp’s office announced May 6 that the state’s net tax collections in April were $1.03 billion less than the same month last year — a drop of 35.9%.
Local school districts are among the largest organizations that will be affected by this reduction in state revenue. Here’s what local leaders said about what the drastic cuts will mean for their districts when the new fiscal year starts July 1.
Muscogee County
Muscogee County School District superintendent David Lewis has asked the school board for more time to determine what will or won’t be cut and whether any layoffs or furloughs would be required.
“There remain too many unknowns at this point,” he said in an emailed interview with the L-E, “such as actual state allocation and district earning information, property tax projections, the disposition of state and federal grants, and the final allocation from the recently passed Congressional CARES Act, to formalize a budget.”
Ordinarily, the board would have to vote in June on a budget for the next fiscal year. This year, however, Lewis wants another month to develop the district’s spending plan.
So the board is scheduled to vote during its May 18 meeting on his recommendation to approve a resolution that would authorize the district to spend available funds in July, not to exceed one-twelfth of the fiscal year 2020 budget, plus debt service and capital expenditures known to be due in July.
“There’s going to be some dire budgetary scenarios going forward at the federal and state level,” Lewis told the board during its May 11 work session, conducted via videoconferencing to follow social distancing guidelines.
What those scenarios will mean locally is currently unclear, but Lewis emphasized this point in his interview with the L-E:
“Regardless, our goal remains to put forward a fiscally responsible budget that prioritizes student learning needs and support with the least possible impact on our employees,” he said. “In order to do so, our staff is considering all options and budgetary scenarios.”
Fortunately, he said, MCSD has an unassigned fund balance of $30 million, which equates to approximately 36 days of operating expenses. This reserve, Lewis said, “is meant to be used during times such as this unprecedented and unforeseen pandemic.”
MCSD’s $308 million budget for fiscal year 2020 includes $290 million in total revenue. Projected local sources of revenue account for approximately 40%, state revenue 60% and federal revenue less than 1%.
Harris County
The current budget for the Harris County School District includes $54.3 million in total revenue. Projected local sources of revenue account for 45%, state revenue 52% and federal revenue 3%.
HCSD spokeswoman Rachel Crumbley told the L-E in an emailed interview it’s too early to know specifically what will or won’t be cut.
“We are awaiting budget numbers from the state, which will not be available until June 11,” she said. “We are planning as best as we can for a variety of possible scenarios and hope to have our budget finished by the end of June. … We will need to be creative as far as what requests come in and what we can fulfill.”
Asked whether HCSD’s cuts would include layoffs or furloughs, Crumbley said, “Our priority is to lose no personnel. If necessary to protect personnel, we could furlough.”
Chattahoochee County
The budget process has been delayed also in the Chattahoochee County School District because no allotments have been issued from the state. Similar to MCSD, ChattCo superintendent Kristie Brooks plans to ask the school board to approve a spending resolution that will allow the district to finalize a budget beyond the usual July 1 deadline.
But it’s already clear that local cuts will have to be made, Brooks told the L-E in an emailed interview.
She didn’t directly answer whether layoffs or furloughs would be part of the cuts. She did say, however, that ChattCo “will enact various measures to proactively address the anticipated decline in funding. This includes: Hiring freeze, utilizing current leadership to fulfill additional responsibilities, reducing operational costs, utilizing the CARE funds to offset the deficits and provide continued services, and consider alternative workday options. … Our goal is to maintain the quality of CCSD schools and make every effort and sacrifice to reduce disruptions to the classroom.”
Out of ChattCo’s total of around $11.3 million in expected revenue this fiscal year, approximately 11% are local sources, 71% state and 18% federal.
Alabama school districts
Alabama budget officials haven’t issued a similar mandate to cut spending plans.
In fact, Phenix City Schools superintendent Randy Wilkes told the L-E, due to an enrollment increase, he expects his school system to receive “a slight increase” in state funding for next fiscal year.
Russell County superintendent Brenda Coley told the L-E, “We do not anticipate making any cuts until we receive further guidance from the state department of education.”
Lee County superintendent Mac McCoy wasn’t reached for comment before publication.
This story was originally published May 15, 2020 at 7:00 AM.
