With half of the school year behind them, members of the Kent School Board on March 25 listened to budget projections for the remainder of this year before hearing about the potential cuts for next year.
According to Executive Director of Finance John Knutson, the Kent School District has reined in spending for the year, but despite being on pace to spend nearly $1 million less than projected, the district will still be living beyond its means for the 2008-2009 school year.
“It shows the district again spending more than we received in revenue,” Knutson told the board.
To make up the difference, the district will dip into its fund balance again to the tune of nearly $2 million. Though that amount is approximately half of what was projected, it should still drop the undesignated fund balance to approximately $11.8 million, bringing into question whether the board will be able to meet its policy to retain a 5 percent fund balance.
“It’s uncertain that the year-end 5 percent requirement will be met,” Knutson said. “In fact, I’d say it’s unlikely.”
Knutson based his figures and projection on the district’s budget numbers through February.
Knutson also looked ahead to the 2009-2010 budget, on which the board is currently working.
Using the governor’s proposed budget from December, Knutson said it looked as though there would be no cost of living increases for staff this year, a decrease in retirement rates and a 6 percent increase in health-care allocation, raising the amount per employee per month to $774 from $732.
Knutson said levy money and levy equalization funds should add $1.7 million to the district budget next year, down more than $1 million from the 2008-2009 increase.
Knutson said that was due to an increase in assessed valuation in the Kent district.
“Relative to the state, we went up,” he said.
The board is currently working on the 2009-2010 budget and is expecting a drop in state funding as well as an increase in spending to make Kent teacher salaries more competitive.
On average, teachers in Kent are among the lowest-paid within the Puget Sound school districts.
Following Knutson’s presentation, the board officially received the administration’s list of recommended cuts, should the district be forced to make up a budget hole that could go up to $16 million.
How it would work
The plan begins with a freeze on administration and leadership team salaries (the leadership team would normally receive the same increase as teachers, but in the past, teacher-salary increases carried over to the leadership team and principals as well) and $3.3 million in central office and building administration cuts.
If more money is needed to fill the budget hole, a list of 17 programs to cut in priority has been released, beginning with increased rents for non-school events at elementary schools, continuing through professional development for math and science teachers, secondary-class size increases and the elimination of 10th grade sports and fifth grade instrumental music before, finally, layoffs to teachers at every level.
Under a worst-case scenario in which the district needs to plug the full projected $16 million gap, 90 teachers, 14 administrators and 35 classified staff members could lose their jobs.
Union reaction
Following the meeting, union officials, who have insisted the district is not in financial trouble and is using the budget numbers as a bargaining tool to drive down expectations before contract talks, focused on the fund balance.
“It appears to us they are very likely to end with the same fund balance with which they started,” said Kent Education Association officer Mike McNett.
KEA President Lisa Brackin-Johnson said it was good to see the district releasing the information on potential cuts, but again reiterated the union’s position that the cuts will not need to be as deep as projected and that economic-stimulus money should help fill some of the district’s coffers.
Brackin-Johnson also said the district’s natural rate of attrition – those teachers retiring or leaving the district – should make up for those that need to be cut.
“The general turnover will probably account for that,” she said.
McNett and Brackin-Johnson said the new numbers would not change anything as the union prepares to negotiate its next contract.
A budget proposal from the state senate was projected to be released Monday while the House of Representatives is expected to release its proposal by the end of the week.
The board is preparing for cuts now because of contractual obligations to notify teachers by mid-may of layoffs are coming.
“No one likes budget cuts,” said board member Bill Boyce. “As leaders, we have to plan. We can’t wait.”
“This is a tough project… We don’t want to cut anything,” echoed board member Sandy Collins. “But the reality is we have to.”
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