Update (Posted 05/11/10) In its May 11 meeting the Virginia Beach School Board adopted a resolution Update (Posted 05/06/10) In an emergency meeting held Tuesday, May 4 the Virginia Beach School Board adopted a resolution |
expressing regret at the City Council's decision to use $8.8 million in school reserve/reversion funds to balance the municipal budget. The School Board resolution also expressed that sentiment for City Council's decision to eliminate lump sum appropriation and return instead to categorical appropriation. The School Board resolution pledges that the Board will work to make its case to the General Assembly to change the law to allow public schools to maintain their own reserves. At present, the law allows only local governments to maintain reserve funds on behalf of public schools. This page has been created as a way of advising our community on a recent development that may adversely affect the Virginia Beach City Public Schools operating budget, in the 2011-12 school year. Recently the city advised the school system of plans to take $8.8 million in school reserve/reversion funding to address two capital projects, a new animal shelter and a design plan for a new recreation center.
City Council will vote on a municipal budget on Tuesday, May 11. The leadership of Virginia Beach City Public Schools is hopeful that in the interim we can --- with the help of our community – make the case that taking school funding is not in the best interests of the children of this city. While the money would not be taken until the 2011-12 school year, our financial projections indicate we will be facing a considerable financial shortfall. If we lose $8.8 million, it is highly likely that the end result will be unacceptably large class size increases and some job losses for employees. We will be talking to city leadership about our concerns. Those who wish to do likewise can access the City Council contact information here. In the meantime, the information provided below is designed to facilitate citizens’ understanding of the issue.
- The School Board/school administration has a long history of collaboration and cooperation with City Council.
- Mid-April, School Board approved a $639.2 million budget, balanced to offset a $21.2 million shortfall for 2010/11.
- What the school 2010/11 budget does: Safeguards instructional programs for children, protects employee jobs, and maintains health insurance costs to employees (increases not passed through to staff).
- What the school budget 2010/11 does not do: Provide employee raises, allow for program expansions, raise class sizes (in Year One of the biennium) or shorten instructional and employee calendars. (Note: Reducing the employee calendar means fewer paid days or, in essence, a pay cut for employees.)
- Through an energy efficiencies program and implementation of strategic cost-saving strategies, the school division has developed a reserve/savings fund of $23.5 million. (See an outline of the savings.)
- These savings are the result of systematic planning and often painful decision making including closing a school, ending the year-round school program, eliminating an after-school program at three schools, eliminating central office positions and some temporary employment agreements and making changes to the overtime policy and health care plan eligibility – to name a few.
- This money is critical during our current economic crisis because it will be used to offset future (more drastic) cuts to programs and employees.
- The 2011/12 school operating budget requires the transfer of $11 million from savings and is still predicated on having to raise class sizes and increase the minimum number of students required to “make” a class at the high school level.
- The City officially informed school system leadership of the intent to take $8.8 million from school savings to fund two of the City’s capital projects, a new animal shelter and a new recreation center on Monday, May 3.
- School administration understands these needs for the community; however, school leadership questions the desire to take money from student education to fund them especially when published media reports indicate that the City maintains a $167 million fund balance.
- The City transferred $8.8 million dollars from the school reserve funds last year in order to fund road projects included in the City’s 2009/10 budget. The School Board and school administration supported the transfer for two reasons:
- To help avoid the possibility of a tax increase for citizens;
- It was positioned by City leaders as a one-time necessity – not a default budget-balancing strategy.
- If the City takes an additional $8-$9 million from school savings/reserves, it is likely that the school division will be forced to cut jobs in 2011/12 instead of relying on attrition.
Important Point of Information
Virginia Beach is somewhat unique in that schools are funded through a revenue sharing formula. The city/schools revenue sharing formula provides the school division with 51.3 percent of seven General Fund revenue streams: real estate taxes, general sales tax, personal property tax, business license tax, utility tax, state telecommunications tax, and cable franchise tax.
(Note: The school’s share of the funding formula has been reduced four times since the formula’s inception in 1997-1998. The revenue sharing formula policy originally adopted in 1997 provided 53.13 percent of general fund revenue streams to the schools.)