Dr. Michael Hinojosa (MDJStaff/Laura Moon)
Half of the board’s four-hour meeting was spent diving into what next year’s annual budget holds. The board also heard from Adam Fraley with Mauldin & Jenkins of Atlanta on how Cobb Schools managed its finances in FY13.
Early projections, which Chief Financial Officer Brad Johnson said were “guesstimates,” show that for FY14 Cobb could be looking at $807.6 million in revenue, $887.1 million in expenditures and a $79 million deficit.
“We have a lot of assumptions that we used,” Johnson said about putting the report together.
Cobb Superintendent Michael Hinojosa said the district is not ready to release any solutions to eliminating the deficit and said those could be presented to the board sometime in late March following adjournment of Georgia’s 2013 legislative session.
“By then, we should know what the final number will be,” he said Tuesday.
Approximately 70 percent of the total annual budget is spent on instructional employees and 90 percent on all staff members.
Additional expenditures for FY14 include the annual step increase of $9.9 million; increasing the Teacher Retirement System rate from 11.41 percent to 12.28 percent, or $4.4 million; increasing health insurance for classified employees, $5.4 million; utility increases, $1.6 million; and charter school payments, $2.2 million.
Johnson said there are still a lot of “unknowns” regarding the budget. For example, estimating the car tag tax changes, austerity cuts taken by the state and whether an extension for Medicaid funding, or the so-called “bed tax,” will pass.
Hinojosa said that if the bed tax failed, it could result in the district losing another $20 million in funding from the state.
He also reminded the board that the budget overview is the beginning of a potential six-month process and that in February, Johnson’s staff will bring a budget calendar before them to approve.
The FY14 budget must be approved no later than June 30.
During the meeting, Southeast Cobb’s Tim Stultz commented about the trend of a steadily increasing deficit through FY17. Projections indicate that Cobb could be looking at a $105 million deficit by then.
“Year in and year out, we continue to try to come up with a balanced budget, but we end up with furlough days, cutting the school year and looking at these numbers, it appears this is going to be the same model moving forward,” Stultz said. “I don’t think that’s a good way of running the school district.”
He referenced Hinojosa previously, saying that the district will not be able to continue financially surviving on the current “model of education,” and that they have to find a more efficient ways to educate young people.
“You’re exactly dead on Mr. Stultz,” Hinojosa responded. “This year we intend in this budget reduction plan to start laying out some different ideas.”
Hinojosa said the changes would have to be presented at a later time.
In other business, Johnson announced that the district received a “clean opinion” from auditors on the Comprehensive Annual Financial Report.
This means that the financial statements of the district are considered to present “fairly” the financial position and results of operations for the year ending June 30, 2012.
Johnson said only a handful of districts in Cobb prepare CAFRs and that 2012 marked the 31st consecutive year they had been recognized for “excellence” in financial reporting.
“We are proud to continue this tradition,” he said.
Fraley applauded the district for “valuing” its Fund Balance by keeping it as replenished as possible. It currently sits at around $98 million, which would allow the district to run for a little over a month if the General Fund were zeroed out.
“Cobb Schools is in a good financial position,” he said.
The budget forecast will be posted online at www.cobbk12.org.
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GENERAL ADMINISTRATION - with 30.75 positions - activities concerned with establishing and administering policy for operating the district - including activities of the BOE, local activities in interpretation of the laws and statutes and general liablility are charged here, as are the activities of external auditors, activities performed by superintendent, administrative support personnel and deputy, associate or assistant superintendent having overall admin. responsibility. Total cost - $6,214,299.00. (0.73% of budget)
CENTRAL SUPPORT SERVICES - with 108 positions - Central office activities other than general administration and business services. Included are personnel services, data processing services, strategic planning including research, development and evaluation on a system-wide basis; and public relations activities, suchas writing, editing and other preparation necessary to disseminate information to students, staff and the general public. Total Cost $14,554,596.00 (1.71% of budget)
SUPPORT SERVICES - BUSINESS - with 49.70 positions - Activities concerned with the fiscal operation of the district, including budgeting, financial and property accounting, payroll, inventory control, internal auditing and managing funds. Also included are purchasing, warehouse and distribution operations, and printing, publishing and duplicating operations. Total Cost - $5,845,916.00 (0.69% of budget)
Bottom line, we have to come up with alternatives for increased revenue from a number of different sources. Which may include upping the millage rate, offering early retirement for those on the higher pay scales, etc. It needs to implemented in such a way that it does not impact too heavily in one area, but is spread out. Short of firing a lot of teachers and consolidating into huge classes, somebody better come up with something reasonably soon.
Last years budget included $25,202,632.00 for a staff of 77 who work in "Instructional Staff Services". Their description - "These activities include curriculum development, techniques of instruction, child development and understanding, staff training and professional development." No mention of how their salaries break down compared to other costs, but at $327,307.00 per staff member, you wonder how much some of those ancillary costs are and how necessary. Large speaking fees for the latest educational specialist passing through, testing, yet another curriculum change etc. are probably a big part of it. These are probably the same people that are currently having our teachers do "assessments" on practice tests that are not only very time consuming because of written portions and the way they have to be graded, but also don't cover the actual current curriculum. Teachers are also concerned all the curriculum changes and mismanagement will further negatively impact their supposed job assessments based on tests in the near future. Being held accountable for a student's proficiency on material not in the curriculum yet or may be changed to at the last minute, is not what I would consider supporting our educators and students. Allowing these middle management specialists to bury our teachers in bureaucratic minutae is further adding to an already stressful classroom environment. Sounds like a good place to start looking for savings.
Time to form a citizens group to deal with the school issue. Anyone else think so?
Was she against it before she was for it?
I know the school board is not connected with the county commission. My suggestion was the county commission step in and help fix this mess.
I know exactly what I'm talking about. You didn't understand my original post. And you didn't have to be so rude about it.
On the other hand, you have the BOC building all kinds of publicly funded retirement communities to attract those that will take advantage of the senior exemption.
Go figure.
(2) CCSD is in a budget crisis and so are teachers. Gas prices up, bills up, cost of living up, pay check down.... CCSD #2 in education in GA and #23 in pay in GA. Something is wrong with that picture.
(3) With all of the cuts, we must strategically plan on how to remain attractive compensation wise to get the best and brightest and yet provide the high quality education Cobb residents expect.
The other thing no one is mentioning is the lack of a SPLOST to take money out of, so we have finally hit the point of running out of money. Hmmm....even a casual observer saw this coming. Without taking a cheap shot at the two previous board chairs for kicking this can down the road, it is now time to get serious.
You know what they say - "Those that can, teach... those that can't work on Glover Street."