Schools agree to return $750,000

County requested trims to budget

Friday, Oct. 30, 2009

"The board decided not to take any permanent cuts in the budget" but to use its fund balance instead to adjust its budget to meet the commissioners' demands, said Greg Nourse, director of fiscal services.

While the school board members agreed that the least harmful way to take the money out of its budget was to dip into the $13 million fund balance socked away in recent years, some did question aspects of the adjustment.

"I think it's just sort of an unusual way of handling the accounting," said Cathy Allen, school board vice chair.

The county commissioners and county administrator asked that the money not be given back from the fund balance directly, but instead be taken from specific areas and then transfer the fund balance to the specific school category.

"We have no choice in the matter. We've discussed this several times … It's something we have to do," said board member Sal Raspa.

Nourse said they will pull from electricity and heat funding as well as bus contractors, equipment and retiree health care categories. Those things will still be funded, just with the fund balance now instead of revenue from the county.

In essence this move forces the school system to use its fund balance for recurring costs, something board members previously said they would strive not to do.

"We've had to go back on our word," Chair Bill Mattingly said. "We will weather this storm … but people have to understand, we have to do our part, as well."

Board member Marilyn Crosby asked if the county could ask for more money back out of this year's school budget. The county funded about $5 million over maintenance of effort, a minimum funding level required by law.

This is the first time the county has asked for a portion of the funding back from the school board, said member Mary Washington, who has not missed a school board meeting in her more than 13 years on the board.

"We want to be prepared" and have to be flexible, Allen said, adding that a school board member cannot believe every proposal discussed by state legislators. There is talk that the maintenance of effort procedures could change this year after several counties requested waivers last spring.

Since July 1, when the current school budget went into effect, some grants that were not expected arrived and some that were expected did not, Nourse said. Those changes were also reflected in Wednesday's actions by the school board, which were approved unanimously.

Among other deficits this year was a grant expected from the Maryland Department of Social Services for more than $61,000.

The state recently announced an extra $187,664 for tuition for disabled students, which will go toward non-public school placement. The school board added nearly a half-million to the category when planning this year's budget to assure it did not fall short.

For now, Nourse said, that money will not be moved; if there is extra late in the year the school board can vote to transfer it to another category.

The general fund expenditure transfer requests are to cover the annual leave payoff to date for retirees that have left the system since July 1. There are a few departmental requests, and movement of two staff positions due to a reorganization adjustment for this year.

jyeatman@somdnews.com