Employees urge Fayette BoE not to make them pay more for health benefits; number of teacher slots may be cut to meet budget

It really is the economy, and it is knocking at the door of the Fayette County School System.

Despite several million dollars in cost-cutting measures by the school system, and more on the way, board members will have to wrestle with what could be a projected $2.64 million revenue shortfall by the end of June 2009.

That $2.64 million shortfall will be a reality if economic conditions remain the same, Comptroller Laura Brock told board members Monday.

Beyond those cost-cutting measures, the board is considering an even larger number of ways to reduce expenditures. One of those could be cutting teacher slots through continued attrition or “other means.”

Superintendent John DeCotis said he would soon know where those numbers stand. He said a letter will be sent inquiring about teachers that planned to stay or leave for the next school year.

“We’ve always protected the classroom and now we’ve about cut everything else,” DeCotis said.

Still another potential for savings could come in the form of premium increases, or even elimination as a worst case scenario, of system-paid medical, dental, disability and life insurance.

The potential for premium increases surfaced several months ago and, in the face of a worsening economy, is still on the table.

Relating directly to that issue, the public comments portion of the meeting Monday was stacked with school system employees requesting that board members not take action that would have a negative financial impact on benefits.

Employees a few weeks ago ended the open enrollment period where they had to select the benefits they want to carry next year. Some indicated their choices might have been different if the board makes adjustments to the benefits package.

Employees said they were empathetic to the situation faced by the board, but asked that benefits not be included in their cost-cutting measures.

Board members continued with a lengthy discussion on the various issues relating to the broad topic of cost cutting and how the board could overcome the continuing deficit. During her comments, board Chair Terri Smith noted an individual economic reality being experienced by many people across Fayette County and America.

“It would hurt a lot to start paying your own life insurance, but it would hurt a lot more to lose your job,” Smith said.

The school system has made significant cuts, Comptroller Brock reported, but even those cannot offset the effects of a local and state economy that is showing no signs of improving.

Brock said local revenues are down, being tied primarily to property taxes, transfer taxes, intangible taxes and interest rates.

Additionally, the state is projecting further funding cuts in addition to the millions already made to Fayette County public education in recent years.

Reporting of cost-cutting measures implemented prior to the current budget year and continuing through the 2008-2009 school year, Operations Director Sam Sweat said the savings came to approximately $4.15 million.

Sweat said 78 positions have now been cut from the system, a savings of $3,660,000. Many of those cuts came prior to the beginning on the budget year in July.

The school system will save $195,000 later this month when 1,875 computers are returned to Dell, while another $150,000 is expected to be saved during the school year from energy conservation efforts at school system facilities throughout the county, Sweat said.

Sweat said implementing a four-day work week during the summer saved $40,000. He said closing schools during the weeks of July 4, spring break, winter break and Christmas saves $5,000 per day. Another cost-saving measure showed $15,470 in savings when bus routes were combined.

The total list of 2008-2009 savings totaled approximately $4,150,000. Additional savings through these and other efforts will continue into the 2009-2010 school year, Sweat said.

Responding to a comment by board member Janet Smola that the school system could do a better job of communicating information on cost cuts to employees, Sweat said that updates could be communicated using the system’s intranet capability.

A complete listing of the issues relating to the school system’s cost-cutting measures can be viewed under the Dec. 15 meeting agenda at www.fcboe.org.