“At the end of the day we have to ensure the education of these children, ensure that fire and rescue and the Sheriff’s Office show up in a timely manner and when you get beyond that not much is left to cut. I hope we can come out still speaking to each other, agree to disagree without throwing things,” said Blue Ridge Supervisor and Finance Committee Chairman Jim Burton of the upcoming county budget at a Committee of the Whole (COW) meeting last week between Loudoun supervisors and the Loudoun County School Board.
“I urge extreme caution, we are talking about starting to dismantle and end programs, in a system that has been the pride of this county, pride of economic development. We enjoyed the luxury in all our growth years we never approached a tax rate of $1.50, we may have reached the end of the line of being able to have it all and not pay for it,” said Dr. Ed Hatrick Superintendent of Loudoun County Public Schools (LCPS).
Members of both boards and respective staffs sat down for the first of many anticipated meetings regarding the looming FY 2011 budget and anticipated budget shortfall. The mood was cordial but cautious. The Supervisors’ Finance Committee, chaired by Burton, has already sent signals and preliminary recommendations that both sides of the budget—county and schools—can expect to receive less money in FY2011 than last year, but just how much remains uncertain. Thursday’s (COW) discussion centered on three possible budget scenarios all tied to the county tax rate. Supervisors want to know the effect of budgets predicated on level tax bills reflecting no increase in funding, a five percent increase or five percent decrease in funding below the zero level. Last year, the average tax bill in Loudoun County was $5,000. A plus or minus fluctuation of 5 percent represents $250 more or $250 less to the average tax bill.
At the end of the meeting two things were clear. The County faces another dire financial year and dismal forecast of revenue, and LCPS continues to grapple with increased enrollment and reduced funding.
School board Chairman DuPree (Dulles) acknowledged “These are obviously difficult times for households and governments around the country. How we respond will determine the potential impact of this budget cycle on the tax rate, on education and on government services. We [LCPS] are a major factor in this budget.” LCPS ranks first in the state in growth, with 3,100 new students in school year 2009-2010, DuPree said “And more to come.”
Supt. Hatrick reminded supervisors of his “statutory requirements” to present a budget to provide education for Loudoun students, that he would not present any new programs but “My budget will not meet the budget guidelines you will present.” Broad Run Supervisor Lori Waters (R) asked the schools to “Put together a realistic budget, one worth your time and effort,” and that to send a budget “completely out of whack will make reconciliation tougher, Waters advised.
Scott York (I- At Large) Chairman of the Loudoun Board of Supervisors and School Board Chairman DuPree Chairman were joined at the Nov. 12 meeting by respective Loudoun district supervisor and school board representatives Jim Burton (I) and Priscilla Godfrey of the Blue Ridge District, Sally Kurtz (D) and Jennifer Bergel of the Catoctin District, Kelly Burk(D) and Tom Marshall of the Leesburg District, Stevens Miller (D) and Robert DuPree of the Dulles District, Lori Waters (R) and Bob Ohneiser of the Broad Run District, Andrea McGimsey (D) and John Stevens of the Potomac District, At Large School Board member Tom Reed and Sterling School Board member Warren Geurin. Absent from the meeting were Sterling Supervisor Eugene Delgaudio (R) and Sugarland Run School Board member Joseph Guzman. Members of both boards expressed condolences to Supervisor Susan Buckley (D-Sugarland Run) on the death of her father Nov. 11 in acknowledging her absence at the afternoon meetings.
School board members and Supt. Hatrick expressed particular concern about being asked to do more with less given the continued growth in student population—LCPS enrollment grew by 3,000 new students as of September 30, 2009 and an additional 3,250 students are expected for the 2010-2011 school year. Hatrick also spoke of limitations on LCPS ability to adjust to more budget cuts without fundamentally changing the education provided to the more than 60,000 students in grades K-12. Expectations of another year of reduced local funding joins similar predictions of less federal and state funding coupled with almost $70 million in additional costs in FY 2011. Hatrick referenced the expected Virginia Retirement System (VRS) rate increase of $20 million, an additional $39 million for the 3,257 new students times the $11,997 per pupil costs, and the projected $7.2 million it will cost LCPS to open two new high schools—Tuscarora in Leesburg and Woodgrove in Purcellville and one new elementary school. The $7.3 million figure does not include the cost of salaries to staff the new schools.
LCPS reduced the FY2010 budget by more than $70 million, and for two year LCPS provided no cost of living adjustments (COLA) to employees. Catoctin School Board member Jennifer Bergel wanted supervisors to realize that recent budget cuts have contributed to Loudoun’s decline from fourth to next to last place in regional comparisons with other school jurisdictions for teachers pay in a two year interval as well as a decline to next to last place in Average teacher salary in a similar regional comparison:
TEACHER SALARIES
STEP 1 BACHELORS SALARY FY 2010
Montgomery, MD—$46,410
Prince George’s, MD— $44,799
Fairfax—$44,389
Falls Church—$44,290
Arlington—$43,910
Alexandria—$43,116
Prince William—$42,863
Loudoun—$42,639
Manassas—$42,585
AVERAGE SALARY FY 2010
Montgomery, MD—$76,483
Arlington—$72,264
Alexandria—$69,305
Prince George’s—$67,971
Falls Church—$66,035
Fairfax—$64,653
Manassas—$60,900
Loudoun— $59,734
Prince William—$59,330
LCPS also declined in regional ranking in FY 2010 cost per pupil to next to last at $11,997, just above the $10,383 figure for Prince William County. Arlington lead the list with a cost per pupil of $18,569, while Fairfax County ranked fifth of nine with a $12,192 per pupil cost.
TIERS AND REDUCTTIONS IN FORCE (RIFs)
Two remaining Tiers of cuts presented in the last budget cycle contain significant changes to the LCPS school system and include school closures, elimination of programs, more students in classrooms, and job eliminations, but even those reduction do not satisfy the level of reduced funding supervisors are considering, Supt. Hatrick advised. To reach projected local funding reduction estimates of $70 to $140 million Hatrick said LCPS would need to eliminate up to 670 full time equivalent (FTE) jobs in the school system. Hatrick reminded supervisors that 71 percent of all LCPS employees live in the Loudoun County, “When you look at those making $75,000 or less we employ them, you employ them. They struggle to stay in Loudoun County. Don’t think it is somebody else,” we are talking about when we discuss Reductions in Force (RIFs).
Blue Ridge School Board member Priscilla Godfrey advised that adhering to a $1.24 tax rate would equate to 670 RIFs, “LCPS personnel on the street, “ and spoke of resulting foreclosures from such job losses. “There are some drastic ramifications from such a cut,” Godfrey cautioned.
School Board Vice Chairman Warren Geurin said it was “Unrealistic we can cut $100 more million in reductions, Tiers 2 and 3 from last year plus $80 million without seriously damaging programs,” and asked supervisors to “Take that into account when you are deciding your fiscal guidance.”
Leesburg Supervisor Kelly Burk (D) offered this comment “If you want to ensure an economic downturn, then make sure your schools are inferior to others around you.” Hatrick explained that increasing average class size by three students in grades K-12 would only net $21 million in savings and result in a larger class size last seen in the 1950’s in Loudoun County.
BUDGET OUTLOOK FOR FY 2011
Chairman York and Supervisor Burton both spoke to county budget outlook at the Nov. 12 meeting. “The economic climate is not very good today. The state is suffering,” York said of revenue from the state to support schools, public safety and human services. Burton advised that the county portfolio was down an estimated 5 percent, and revenue coming to the county continues to be down.
Although Loudoun is listed as one of the richest counties in the nation with an average household income of $112,000, and 30 percent of households earn more than $200,000, Burton said another 30 percent of Loudoun households live on less than $75,000 a year. While he anticipates cries for a significant tax increase from some citizens, others in the county “are really struggling,” Burton said as he referenced the recent and continuing home foreclosure rate.
Veteran Loudoun County Budget staffer Ben Mays spoke of the implications of the three budget scenarios, specifically a possible 5 percent decline in funding below the zero level.
At minus 5 percent LCPS would receive $140 million less dollars, which represents Tiers 2 and Tier 3 cuts presented last year, plus Mays said “and additional $86 million.” While for the county side budget a 5 percent decline or $45 million less dollars, represents County Tiers 2, 3, and 4 and an additional $15 million. While state aid last year aided LCPS in weathering reduced local funding, Mays spoke of the state’s own budget concerns this year. The increase in numbers of LCPS students may provide some state help Mays noted. Mays also spoke to the falling real estate portfolio and the decline in reserves and fund balances. “For the FY 2010 budget we used $75 million in fund balances across different departments, this year we can only use $34 million,” Mays did credit LCPS for their efforts,” Schools have done the upmost to put money away this year,” he said.
Referring to both the county and schools Tiers of cuts, Mays said the proposed tiers represent “significant Reductions in Force (RIFs) for both county and schools,” as well as the potential “loss of expertise”.
Chairman York said the information from Supt. Hatrick and Mays “Gives us the magnitude of impacts,” of the possible budget reductions supervisors are contemplating.
The public is invited to speak on County budget issues at two public hearings supervisors have scheduled for Tuesday, December 8 in the Loudoun County Government Center in Leesburg and Thursday December 10 at the LPCS Administration Building in Ashburn. Both meetings begin at 6:30 p.m., two minutes for each speaker. The public sessions begin with a County staff presentation on FY 2011 budget.
First, eliminate the top heavy ADMIN for Schools and County -- ALL Department are top heavy in ADMIN
areas with highly paid, under worked people. There should be a very very very LEAN admin structure in place - all our staffing should be concentrated to our front lines that provide public services. Our managers should be working, not drinking lattes and attending lunches!!!
Second, reduce or EQUALIZE the cushy perks you give management vs. line staff (eg more vacation hours earned, paid gym memberships etc etc...) Management needs to be more like front line staff!! I be you could save a bundle there if management suddenly was treated like front line.
Third, reduce and or eliminate the "perks" in schools - no more language classes for 3rd graders etc etc.
Hurts, but these are NOT essential to the schools. Re focus on the basic reading, writing and 'rithmatic!!
Lastly, check your spending: what were your on board staff numbers in 2003 vs. 2007? How much did
the county "bloat" (eg hire new hires) from 2000 to 2007?
And how many of those hires were for ADMIN
rather than "front lines"??
I suggest if our revenue stream is at 2003 levels - then that's
where the county should be staffed at, and all those ADMIN people should be gone FIRST - then only then should we be cutting into our front line staff.