The York County School Board approved Monday a $124.4 million budget, including a request of $2.9 million in additional local funding that might not be granted.
The board members anticipate the county plans to address that issue after the county adopts its budget in May. At the end of their budget discussion, the members agreed to keep compensation their top budget priority.
County Administrator James McReynolds released his proposed county budget March 19, including a schools allocation of $51.17 million, an increase of $2.3 million over the current year. The figure does not include $600,000 requested to offset the cost of higher payroll taxes on mandatory employee contributions to the Virginia Retirement System.
When the school division raises employee salaries 4 percent to offset the identical increase in required retirement contributions, employees will see their take-home pay decrease unless the division shifts funds to cover the payroll taxes.
McReynolds said he excluded the $600,000 because the county did not extend the same offer to its employees last year, when county employees’ salaries and contributions went up 5 percent.
On Monday, School Board Vice Chair Mark Medford objected to the suggestion the schools’ compensation plan wasn’t “equitable,” compared to the county’s employee compensation. When the county opted to raise employee salaries and contributions 5 percent, the school board sought permission to use extra state funding to extend the same offer to its employees. The supervisors declined their request to alter a Memorandum of Understanding requiring the school division to return unexpected state funding to the county.
“That’s the equity issue I see,” Medford said. “When you have to apply a mandate and not hold them [employees] harmless, but reduce their paycheck … that’s backing up.”
Cindy Kirschke compared the budget process as a “tango,” adding the board likely won’t actually know what its final budget will look like until mid-May.
The approved budget includes $1.5 million for a 2 percent salary increase for staff — the first in five years. In addition, the division is paying $2.6 million for higher healthcare costs.
The budget cut 14 positions, equaling $500,000 in savings, and includes $1.2 million in savings from positions lost to attrition. The cuts, tied to an enrollment decline of 120 students, include five teachers, two paraeducators and materials, saving $299,000. In addition, the division is cutting one warehouse position and three custodians, for savings of $108,300.
Due to sequestration, the division will lose about $260,000 in 2014, triggering $62,135 in additional reductions. Williams said the savings will come from New Horizons Regional Educational Center, which reduced the division’s fee by $13,900 and updated projections in the costs for the VRS increases.
Next, the Board of Supervisors will host a public hearing on the county budget at its 7 p.m. April 25 meeting in York Hall. The supervisors are scheduled to adopt a budget May 7. At that point, the School Board can revisit its budget if necessary.
