One thing is certain about the school budgeting process: York County Schools won’t know how much money to expect from the state and federal government until after it has passed a budget.
Chief Financial Officer Dennis Jarrett provided the School Board with a budget update Monday night, highlighting the differences between budget proposals made by Gov. Bob McDonnell, the House of Delegates and the Senate. Once the two chambers of the General Assembly have approved budgets, a conference committee will marry the two to create a joint General Assembly budget.
As it stands, York County Schools stands to receive $56.4 million from the House and $56.6 million from the Senate — the narrowest margin in recent memory. Neither budget is substantially higher than McDonnell’s budget, which would have given York nearly $56.4 million.
In December, McDonnell proposed the state provide some funding for divisions to give 2 percent salary increases to employees filling state-required positions. The funding was contingent on the passage of the Educator Fairness Act, which passed the Senate on Monday. His budget would give York County $565,036 for the salary increases, which are anticipated to cost $1.5 million if extended to all staff.
Since initially proposing the 2 percent increases, dubbed the “compensation supplement,” McDonnell has issued an executive amendment saying the increase is contingent on the State Comptroller’s analysis on whether to review the revenue forecast five days after the end of the current fiscal year, which concludes June 30.
The House’s proposal would change the date the salary increase funding would become effective to Aug. 1 and would provide $614,660. Locally, the division would have to provide its share of the salary increase by at least Jan. 1, 2014, which would buy the division some time to see how its various revenue streams will shake out. The House also proposes funding a 2 percent salary increase for support positions required by the state.
The Senate differs from the governor and House, however. The Senate’s proposal would provide divisions flexibility to offer between a 1 and 2 percent increase, with a proportionate increase in state revenue. The Senate also proposes funding a 2 percent salary increase for state-required support positions, but it would have to be effective July 1. York County would receive $760,340 from the state if the Senate budget prevails.
The Senate would also require school divisions to provide employees with annual statements of their total compensation. Jarrett said York County Schools already provides information about benefits on each pay stub, but does not provide a total compensation statement. It is intended to help employees understand their compensation package.
Earlier this year, Jarrett said the division could stand to lose $1.2 million in funding over time if federal budget cuts, called sequestration, kicked in on March 1. Although the threat of sequestration could have serious impacts on York County, its effects would not be immediately felt, Jarrett said.
Payments from the Department of Defense are typically paid a year behind, and programs like Title I are paid a year in advance. The pain of the cuts would not hit York County until next year, at which point the lost funding could force staff cuts.
York County learned its lesson in the 1990s, when a government shutdown cut off payments for federal programs and positions. When the payments picked back up later, York County started its Revenue Stabilization Fund, which now has more than $5 million and earns interest.
The budget talks will continue after Superintendent Eric Williams releases his budget proposal, expected later this week. The board will host a public hearing on the fiscal year 2014 budget at its meeting at 7 p.m. Feb. 25 in York Hall.
