Schools

Schools budget looks grim

If the funding cut is 4 percent as predicted, the schools deficit could be $2-million.

By JEFFREY S. SOLOCHEK
Published July 12, 2007

LAND O'LAKES – First the good news: Pasco County property owners likely will see a slight decrease in their school district tax rate when the bill comes in November.

Now the bad news: Just about everything else in the district's financial picture, thanks to the looming loss of $12-million in state funding for the year.

If that 4 percent cut comes to pass in a September special legislative session as expected, the district could face some tough choices that no one wants to make. Like canceling scheduled employee raises based on years of service, and not adding more money to the pay schedule. Or scaling back programs.

"The last thing that we would cut would be anything that affects the classroom," School Board chairwoman Marge Whaley said Tuesday during a budget workshop.

But with revenue statewide projected to come in more than $1-billion below original estimates, school districts must begin looking at ways to make ends meet with less. What makes it hard is that so much of a school district's money is spoken for through things beyond a local board's control.

Of an expected $499-million total operating budget, Pasco chief financial officer Olga Swinson figured that the board would have flexibility with just $19-million after accounting for set items such as existing salaries, transportation and classroom materials.

Toss in the added costs for another 1,200 new students, increased insurance premiums, higher fuel prices and utilities for five new schools, and Swinson put the amount closer to $10-million left - and that's before calculating salary step increases another $7-million and contract raises (in negotiations).

Then there's the pesky issue of the county storm water runoff fee, which is brewing in commission chambers.

The county wants to charge the school district, as other landowners, to help cover federal clean water requirements, which could reach into the hundreds of thousands of dollars.

District officials plan to oppose the fee, saying the schools are infrastructure - not development - and should be exempt.

Put all that together, then take away $12-million in state funding, and, well, you get the picture.

"If Olga is correct with the 4 percent, the $10-million becomes a negative $2-million," board member Allen Altman said.

"Is this a dream or a nightmare?"

Already, superintendent Heather Fiorentino has frozen all vacant positions, making exceptions case-by-case for essential jobs.

She also has held back on filling all teaching jobs until it's certain that actual students show up to make enrollment projections real.

And she has her staff reviewing all line items for possible additional reductions.

Fiorentino, who has worked with her staff for weeks on a budget proposal, had hoped for some board direction Wednesday. "But now we aren't sure where we are," she said afterward.

She remained uncertain whether "categorical" funds - items that have specific purposes rather than general operations, such as supplemental tutoring - would be cut, too.

One area where few predicted cuts was capital projects, such as construction.

Swinson figured the board might have about $148-million in revenue, with about $128-million available for new projects.

Swinson smiled at the board as she told the members this would be their main chance to direct money to specific projects.

Her list of proposals included a new high school for northwest Pasco, new elementary schools in Connerton and Watergrass, a complete overhaul or rebuilding of Sanders Elementary, and new buildings for the district administration and telecommunications departments.

Board members did not question any of the priorities.

Fiorentino and Swinson said they hoped to have more details about the budget picture for the board by its July 24 meeting.

The state is scheduled to have its next revenue estimating conference on Aug. 1.

Jeffrey S. Solochek can be reached at solochek@sptimes.com or (813) 909-4614. For more education news, visit The Gradebook at blogs.tampabay.com/schools.

[Last modified July 12, 2007, 07:38:55]