School system faces $5.8M budget shortfall
It gets worse: health insurance premiums for employees are expected to rise by $1M, utility costs by nearly $400,000
ABINGDON, Va. – A $5.8 million projected school system budget shortfall is likely to top the discussion during a joint meeting Wednesday between the Washington County Board of Supervisors and the county school board.
In addition to $4 million in direct state budget cuts, Washington County schools are anticipating a series of increased costs, including: $1 million more in health insurance premiums; an extra $600,000 in state retirement system contributions; and $380,800 of increased utility costs, according to information presented at a Thursday joint schools-county budget committee meeting.
The bottom line for the school system, which has an annual budget of more than $80 million and makes up more than 65 percent of the county’s total budget, is a $5.8 million shortfall.
The bottom line for the county is still unclear, said Supervisor Tom Taylor, one of two county board members who sit on the joint budget committee.
Washington County also is facing state budget cuts that could force it to make up state-mandated spending on the Southwest Virginia Regional Jail and all five of the county’s constitutional offices, Taylor said.
While the state budget won’t be final until it’s approved by the Virginia General Assembly, no one is making rosy predictions – and it’s unclear how or whether the school budget shortfall could be made up with local money.
“This is exactly what I was talking about on Tuesday night,” said Nicole Price, who also sits on the joint budget committee and who cast the lone vote Tuesday against a plan to buy a $7.5 million office building, citing budgetary concerns. “I think what is most scary about it is that this is the best-case scenario.”
According to the county’s recommended financing plan, the tax impact of the building purchase and other capital projects can be delayed until at least 2013.
Taylor said it’s too early in the process to determine what action the county board of supervisors will take, but it will more likely cut services than raise taxes.
State legislators, he said, appear to be balancing Virginia’s budget on the backs of localities, essentially asking county officials to raise local taxes rather than make the difficult decision themselves of raising state taxes to pay for state services.
“Local governments get caught in the squeeze,” Taylor said, adding that the situation is worst in Southwest and Southside Virginia, where localities lack many of the resources available in other parts of the state.
“If the general assembly of Virginia doesn’t step up to the plate and do what it should do, then the likelihood is that services will be cut,” Taylor said.
Specifics, he said, won’t be known until firmer numbers are available, but right now the school system – and possibly the county – is looking at a gaping budgetary black hole that nobody knows how to fill.
Budget talks
What: Joint meeting of the Washington County Board of Supervisors and Washington County School Board to discuss budgeting
When: 6 p.m. Wednesday
Where: Washington County School Board Office, 812 Thompson Drive, Abingdon
dmccown@bristolnews.com | (276) 791-0701
Advertisement
Advertisement
Post a Comment (Please Sign In | Register)
- Please avoid offensive, vulgar, or hateful language.
- Respect others.
- Use the "Flag Comment" link when necessary.
- See the Terms and Conditions for details.
Deal of the Day
Advertisement
Advertisement
Advertisement
Results Loading...