Virginia Beach Superintendent James G. Merrill presented a $694.7 million proposed operating budget to the School Board on Wednesday, February 4. The new proposal, which includes a freeze on employee salaries and a number of programs cuts, reflects a $56.6 million cut from what had previously been approved.

The school system is experiencing a significant reduction in funding from both the state and the city. The state shortfall in revenues currently stands at $27.4 million while local funding is projected to decrease by $29.1 million. In addition, there is a small reduction in federal funds of $134,000.

The superintendent pointed out in his presentation that the volatile economic climate, both statewide and nationally, has put a number of school districts in crisis. He advised the School Board that other school districts are recommending such strategies as employee layoffs and unpaid furloughs, increased class sizes and requiring employees to pay more towards health care benefits.

However, Merrill characterized Virginia Beach City Public Schools as well positioned to weather the financial storm, noting that last year the school division prepared for the changing fiscal environment by initiating a program of operational efficiencies.

These included a hiring freeze, cutting administrative positions, making changes to the overtime policy, initiating an energy savings program and cutting administrative departments’ budgets.

“We have put together a budget that puts children and the people who serve them first. To achieve that greater good our stakeholders must be prepared to make some collective sacrifices,” noted Dr. Merrill.

Among the budget-cutting strategies recommended are: No cost of living increase or step increase for employees; the elimination of the Galaxy after-school program at the Tri-Campus; elimination of the Project X-CD program at the middle school level; returning the division’s four year-round schools to a traditional schedule (which has been approved); curtailing the planned expansion of the Advancement Via Individual Determination (AVID) program; cutting the behind-the-wheel component of driver’s education; eliminating Saturday detention; and suspending field trips.

City Council had approved the school division’s 2009-10 fiscal year budget last year as part of a biennial budget. Each year the second year of the biennium requires some adjustment, but this is the first time a major budget cut has been required.

The proposed operating budget (known as the Superintendent’s Estimate of Needs) has been posted in its entirety on the school division’s Web site, vbschools.com. The proposed budget cuts are on page 9 of that document (page 15 in PDF format). The PowerPoint presentation on both the proposed operating and capital budgets is also online.

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