Budget panel tells county BOE 'no'
Loudon County Budget Committee members unanimously
last week agreed to give Loudon County Schools only a maintenance of
effort funding increase for the 2018-19 year, effectively denying a
request for $750,000 in new money.
The 4-0 vote came after Jason Vance, director of
schools, made a formal request to the committee.
Maintenance of effort allows the school board to
receive at least the same amount of money received from the county
the year before. An exception can be made if there is a noticeable
drop in enrollment.
“In my opinion, the commission should provide, at a
minimum, growth funding,” Vance, said in an email correspondence,
noting the decision was disappointing. “However, in light of the
fact that the commission has been reallocating the growth revenue
over the past several years I believe we need significantly more
than just the growth funding in order to provide for the needs of
our students.
“Without much-needed funding we can provide a basic
program, however, our students deserve the best opportunities to be
able to compete for college and career opportunities,” he added.
The budget committee is suggesting $9.69 million,
which is virtually unchanged from last year’s $9.68 million, Vance
said.
“This would equate to an additional $3,391 above
(maintenance of effort) instead of the $349,437 that we would have
received if the county general fund didn’t take these monies,” Vance
said. “When you consider the penny distribution we actually lose 3.5
pennies in the upcoming budget cycle and the county general fund
gains 3.69 pennies or a total of $787,360. It appears the budget
committee will recommend taking growth funds from Loudon and Lenoir
City schools in the amount of almost $700,000 for the upcoming year.
“It’s very challenging to continue to provide a
competitive school system when competitive funding isn’t being
provided,” he added.
“While both systems were exemplary this past year
according to the state’s accountability system, it’s challenging to
believe we will be able to maintain that same level of excellence if
we have to cut staff and programs from our students.”
The decision comes on the heels of Loudon County
Board of Education expressing concern over the 2018-19 year
potentially yielding a $1.2 million ending fund balance. Board
members during the May meeting passed a budget that is projected to
have $40.76 million in expenditures.
“Now they’re going to have to do some belt
tightening this year and I have every reason to believe at the
end of next year at this time their fund balance will be just
fine,” Commissioner Henry Cullen, county budget committee
member, said.
“So I know they preached the sky was falling, but
I think they’re going to be just fine. Yes, they’re going to
tighten their belt. Yes, they’re going to have to plan out their
expenditures. And yes, they might not be able to do every little
thing, but they’ll be able to run the schools just fine. It’s
called fiscal responsibility.”
Cullen believes the school board should have no
problems in the coming year with the amount of funding that
comes from the county and state.
“Me and Jason talked last week and I asked the
same thing of them that I would of my own employees. Tighten
their belts,” Rollen “Buddy” Bradshaw, county mayor, said.
“We’re seeing growth now, and I think we’re at a point we’re
going to have enough things situated from a budget standpoint
that next year I think that growth money is going to be
available.”
Vance said the school board in 2018-19 will
operate similarly to past years, but the county’s decision will
“negatively impact” the fund balance.
“We are gravely concerned about the 2019-2020
school year,” Vance said. “If the board does not receive a
significant amount of new funding in the next budget cycle they
will be forced to cut several positions ranging from teaching
assistants, nurses, teachers, assistant principals, computers
and other programs that we are accustomed to providing for our
students to be college and career ready.”
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5/28/18