The financial situation at Fayette County School System for the remainder of the 2008-2009 school year is one thing. But it is what is coming for the new school year beginning July 1 that poses a much bigger problem. Board members Tuesday heard a series of presentations intended to clarify the situation and lay the groundwork for budget decisions expected to culminate in March.

Comptroller Laura Brock provided two revenue and expenditure scenarios. In Scenario 1, projected revenues would total $181,975,772 while projected expenditures would total $197,132,660 for a deficit of $14,519,888.

In Scenario 2, projected revenues would total $184,741,358 while projected expenditures would total $197,132,660 for a deficit of $11,754,302.

Scenario 1 assumes a 4 percent funding cut plus the original 2009 state austerity reduction totaling $2 million and a tax collection of 94 percent. Scenario 2 assumes variables such as a 3 percent funding cut and a 95 percent tax collection rate.

Brock’s figures also assumed a 2 percent decrease in the tax digest.

During the presentation, Superintendent John DeCotis commented on the 2009 tax digest saying, “This is the first time in many years that we are projecting a decrease in the local digest.”

Brock continued the presentation with a list of considerations for reducing expenditures for the coming school year by $12,457,800, thus offsetting most or all of the expected revenue shortfall. Those considerations, said DeCotis, would have to be solidified in March for the board’s budget decisions.

The largest item would be a reduction of at least 100 school system positions, including 15 central office positions. The 100-staff reduction would come hopefully through attrition, Brock said. It is a measure that would save $6 million.

The school system has reduced its rolls by more than 80 positions since spring 2008. Human Resources Director Reanee Ellis said that, to date, another 53 staff have indicated that they will be ceasing employment through retirement or moving.

Another cost saving measure for consideration would be a 2 percent pay cut for all employees, a move that would save $2.58 million. Teachers, however, would receive their step increase.

The board will also consider an out-of-county tuition charge of $1,000 per student for school system employees whose children attend Fayette schools. The measure would generate $300,000. And PTO groups could be asked to assist with offsetting 25 percent of the cost of nurses to generate $212,000.

Upcoming board discussions will also include a possible reduction in board-paid benefits. Those include the elimination of part or all of the $71.14 supplement for medical insurance totaling $2.28 million, elimination of the $22 dental supplement at $624,800, elimination of employer paid life insurance coverage up to $50,000 at $312,400 and elimination of employer paid long-term disability at $150,000.

Associated with potential staff reductions are possible options concerning a reduction in system-wide staff allotments and the new Rivers Elementary that will be completed in time for the new school year.

The board was asked to begin thinking about four possible options. Those include allotment reductions with Rivers open and keeping parapros, not opening Rivers and keeping parapros, opening Rivers and reducing parapros and not opening Rivers and reducing parapros.