Burke County schools confront budget cuts

Two state officials' announcements Wednesday — and a third's cautionary warning — could disrupt the Burke County Public Schools' future construction plans and force painful cuts in the 2009-10 budget.
School superintendents were told last week they should expect another funds reversion order from the North Carolina Department of Public Instruction, possibly this week and possibly for as much as 7 percent of 2008-09 funds. Assistant state schools Superintendent Phillip Price delivered that warning during a conference call Feb. 20.
Burke County, like all state public school systems, already returned some $500,000 in state funds earlier this year, but the district minimized the financial impact by canceling or postponing plans to fill new staff positions.
On Wednesday, Gov. Beverly Perdue announced that $300 million will be transferred from several funds into the state's general fund. That includes $50 million from the Education Lottery Reserve Fund, $100 million from the Public School Building Capital Fund and $50 million from the Public School Textbook Fund. Perdue said the action is necessary to help balance the general fund, as is required by state law.
Separately, also on Wednesday, N.C. Schools Superintendent June Atkinson said NCDPI will retain $42 million in additional money instead of distributing it to local schools. About $38 million comes from the Lottery Capital Funds, which provides a portion of lottery revenues to schools. Another $5 million is in ADM Capital Funds.
"Some construction projects (and) renovation that schools had planned may not take place without another source of funding," Atkinson said.
Burke County School Superintendent David Burleson and Finance Officer Keith Lawson immediately started assessing the impact on the local schools. Lawson expects to present his findings at the board of education's meeting Monday night.
Burleson said he believes the changes won't affect or delay the $2-million project to create science classrooms and laboratories at East Burke and Freedom high schools. Work also will continue on repairing Mountain View Elementary's foundation and the district will proceed with roof repairs at several schools.
"Fortunately, we have enough saved to continue the projects we have in place," he said.
Next year's construction plans, however, may have just drifted into limbo.
"It does look like we will not be able to do the future construction projects at the time we have planned," Burleson said.
Depending on how much the state asks the district to revert to Raleigh, Burleson says Burke County may be able to weather the loss without too much damage.
"We do anticipate reverting more funds based on the preliminary information we have received," he said. "Thankfully, as a school system we started some cost-cutting measures when the first reversions were requested that could get us through these next reversions if they are not more than anticipated."
The 2009-10 fiscal year is a different subject. Burleson, Lawson and other school officials already are scrutinizing the district's needs and options.
"As we look at next year, we are developing plans that include a 3, 5 and 7 percent reduction" in state support, Burleson said.
North Carolina's deepening economic problems threaten more than the schools. Perdue on Wednesday ordered deeper cutbacks in state government — as much as 9 percent in some departments and agencies.
Last month she asked state agencies to reduce their budgets this year by 7 percent.
"It's going to get worse," predicted Senate leader Marc Basnight. "She is moving to 9 percent. She will have to go higher. We are in a major, major economic crisis."