Like other tax levying entities across the state, Coweta County School Board members are waiting to see what happens with state funding and the local economy as they look to the next school year that begins in July. For the moment, Coweta is $3.3 million to the good on its $176 million general fund budget with $18 million in reserves. But that could change, as economic shocks from the recession could mean up to $9.45 million in lost revenues and increased costs.

Referencing possible state funding cuts, Superintendent Blake Bass last week told board members possible cuts or additional costs could total $5.4 million, with an additional $4 million coming from the loss of equalization funds, those geared to help offset education costs for poorer counties, and increased property tax exemptions.

If it occurs, the $5.4 million hit would come from a number of sources. Chief among those would be state austerity cuts totaling approximately $1.92 million. State Quality-Based Education (QBE) cuts could total $654,537 and the potential elimination of state funding for nursing positions could cost another $362,759. Budget areas such as additional pay for National Board Certified teachers, the retirement match for teachers and a reduction in interest income would also add to the expenses and loss of revenue. Added to those factors are the opening of Brooks Elementary in July at a cost of $600,000 and a locally-funded teacher raise totaling $400,000.

Coweta could experience an additional $4 million hit if Georgia changes the way it calculates equalization funding. That loss, said Bass, could amount to $3.62 million rather than a $423,785 impact. Rounding out a worse-case situation, Bass said the state is considering increasing the property tax exemption from $2,000 to $4,000. If that is done the hit to the school system would be approximately $844,700. If the perfect storm of cuts and costs align it would mean an overall $9.5 million difference for the 2009-2010 school year beginning in July.

The school system’s general fund budget for the 2008-2009 school year is $175,931,581. Assistant Superintendent for Finance Keith Chapman said last week that the school system is currently under budget. Spending for January came in at $495,647 under budget while expenses for the fiscal year from July through January was currently at $3,336,459 under budget, Chapman said.

The school system budget includes $94.3 million, or 52.35 percent, in state funding, another $72.7 million, or 39.28, in ad valorem taxes and $5.3 million from other local sources.

School system Public Information Officer Dean Jackson said this year’s budget, ending June 30, was balanced by using $3.6 million of the system’s $21,665,000 reserve fund, leaving a balance of $18,107,418.