MARIETTA - Cobb Schools Superintendent Fred Sanderson on Wednesday called the district's $95 million deficit in fiscal year 2010 "unimaginable," and warned that hard choices will need to be made as staff works to prepare the FY11 budget. In his 30-minute state of the system address, he also highlighted many of the district's academic achievements.

"The overwhelming question of the moment is how we will deal with such a staggering deficit moving into the next fiscal year," Sanderson said. "The fact is, hard choices will have to be made and those choices are going to have an impact on both emotional and operational levels."

He acknowledged the district will have to deal with a $100 million deficit for FY11, but did not elaborate on what specific cuts he would propose. Sanderson did say the district has worked hard to cut operational costs, but eventually the cuts may have to start impacting classrooms, teachers and students as the district looks at its largest expenditure - staff salaries and benefits.

"I think it's safe to say that our school district has not faced such a financial burden on anyone's memory, and likely in its entire history," Sanderson said.

The school board will approve the FY11 budget in June.

Sanderson addressed the budget cuts the board was forced to make during FY10, many which were a result of reduction in state funding and austerity cuts. As a result, the district was left with a $95 million deficit, Sanderson said, and the board was forced to make several difficult and unpopular decisions in order to balance the budget. Those included a 2 percent pay reduction for all employees; furlough days for teachers; increases in class sizes; a 10 percent reduction in the district's reserve fund; and restructure school bus stops at the beginning of the school year.

Sanderson said the district should be proud of the fact that it was able to balance the budget without firing teachers and having a minimal effect on classroom education.

"We were able to do this because of the willingness of our employees to comprehend the depth of the financial crisis, and to step up and share in meeting the burden," Sanderson said. "As we move into the next budget cycle, we will be calling on employees to again demonstrate that same unity as we face even more difficult decisions."

In lighter news, Sanderson touted the school district for its glowing review from the Southern Association of Colleges and Schools, and said that it has already implemented many of the recommendations from SACS, including the establishment of its strategic plan.

Sanderson spent a significant amount of time praising student academic performance, saying it was the most important part of the strategic plan.

He said the district's graduation rate continues to increase, most notably among critical subgroups, like English language learners, students with disabilities and economically disadvantaged students.

Regarding the ITBS standardized assessments, Sanderson referred to a PowerPoint chart showing that the district's third, fifth and seventh graders are all above average in their scores when compared with national test results. Sanderson was also proud to report that a vast majority of Cobb students are meeting and exceeding standards on CRCTs.

Sanderson said CRCT scores are crucial since they are part of the requirements used to evaluate a school for No Child Left Behind and the Adequate Yearly Progress assessment. The superintendent said only six of the district's schools did not meet AYP requirements in 2009, as compared to 16 in 2008. However, he acknowledged that the standards for No Child Left Behind will increase again next year, likely resulting in more schools not making AYP.

Sanderson praised students for outperforming their peers throughout Georgia and the country on the SAT, with an average combined score of 1534.

After reporting the test scores, however, Sanderson said he feels society is putting too much emphasis on testing, and that other factors need to go into assessing students and grading a school system.

"In the end, a true education - and the kind we hope to provide - is about so much more than offering a series of prep courses for the next standardized test," he said. "A true educational system fosters life-long learning, encourages critical thinking, develops workplace skills, and, ultimately, graduates productive citizens."

Sanderson also thanked parents for their continued and growing involvement in the schools and their children's education, saying that parent involvement is what distinguishes Cobb from all other districts and is the greatest contributor to its success.

The superintendent closed by saying that amid all of the distractions the district has faced in the past year, it is still able to focus and be successful in its main goal of educating students.

But he did put forth a warning, saying that the district, and all school districts across the state, are being threatened like never before with austerity and state funding cuts.

"Severe austerity cuts in state funding have forced districts across the state to eliminate instructional support, special programs and targeted assistance. At the same time, ever-increasing federal and state mandates continue to increase the academic expectations for all teachers and students," Sanderson said.