The news wasn’t pretty at the Columbus Municipal School District’s budget planning session Saturday morning, but it wasn’t altogether unexpected either. Financial woes have plagued the district for years, and the pecuniary prospects are equally grim for the 2012-2013 school year.
Expenses currently outpace anticipated revenue, but Interim Superintendent Dr. Martha Liddell said she and the budget team have worked diligently over the past six weeks, attempting to whip the budget into shape and make it conform to both the district’s needs and the stakeholders’ expectations without sacrificing instruction.
Of significant concern is the specter of conservatorship or state takeover, which can occur in districts consistently showing poor student performance or financial mismanagement.
Seven Mississippi districts are now in conservatorship: Drew, Hazlehurst, Indianola, North Panola, Okolona, Sunflower County and Tate County.
Two Oktibbeha County schools, East Oktibbeha Elementary and East Oktibbeha High School, are in danger of state takeover due to low test scores. In September, the Mississippi Department of Education sent a five-person team to review factors affecting academic performance at the schools.
The elementary school was ranked as low-performing on the 2010-2011 accountability scores and at-risk for the previous two years. The high school has ranked as failing for the past two years.
The awkward tango of achievement versus financial stability is a constant struggle statewide.
“You have to watch both,” Liddell said. “You can’t take your eyes off them. … Our No. 1 focus is instruction, but if we allow our school district to sink financially, that will impede our progress. In fact, that will stop us in our tracks.”
‘Cutting down to the toilet paper’
And so, the budget team — consisting of Liddell, Deputy Superintendent Craig Shannon, Chief Financial Officer Kenneth Hughes, personnel coordinator Myra Gillis and Assistant Superintendent for Federal Programs Anthony Brown — is making a line-item assessment, trying to trim the fat in every area.
They have even brought school principals into the process, asking them to examine each line of their own budgets and identify potential cost savings.
With the bulk of the district’s budget — approximately 76 percent — going to salaries for its 606 employees, personnel costs are being closely examined, and Liddell said she knows part of reducing costs will include reducing personnel.
The 2012-2013 budget is a work in progress, with a first draft not anticipated until March, cautioned Board President Glenn Lautzenhiser. But in addition to administrative and support staff reductions, they’re also considering cuts in athletics and supplemental salaries and outsourcing support services.
Another change on the horizon is likely to be increased pupil-teacher ratios, he said. The state requires ratios of 27:1 per class for K-six and 150:1 for the total students per teacher in grades seven-12.
“We’ve had very poignant conversations with administrators because this is a team effort,” Liddell said.
After nearly five months of work, the budget team has identified deep cuts, which will provide $3.4 million in cost savings, Liddell said. But they still need to find at least $1 million in additional reductions.
“We’re cutting down to the toilet paper now,” she said, laughing.
Difficult times
But the situation the district faces is no laughing matter — a truth everyone involved readily admits.
The board passed a $43.5 million budget for 2010-2011, requesting $13.39 million from the Columbus City Council, which resulted in a 2.9-mill tax increase for city residents. Even that was not enough to keep the district’s fund balance from dropping.
For nine of the past 10 years, the district has declared a shortfall, according to County Tax Assessor Greg Andrews, who called the 2010-2011 budget a means to break even and a time to decide how to handle the 2012-2013 budget.
Compounding the problems is a plummeting revenue stream.
As population decreases in the city, the value of a mill continues to drop. One mill equaled $208,000 last year and $205,000 this year.
And that situation is only likely to get worse, said David Armstrong, the city’s chief operating officer. The value of a mill won’t be known until July, and there’s some hope that incoming economic developments may offset industry closings and shifting demographics, but it’s too soon to tell.
Further complicating matters is the prospect of cuts in federal and state revenue. The district’s expected revenue this year is $44 million, with the bulk of that coming from state sources. Roughly $20 million is expected from the state, $14 million from local ad valorem taxes and $10 million from federal funding.
“We, and other school districts in Mississippi, are going through difficult times, and it’s just a challenge to everybody,” Lautzenhiser said. “… We just encourage everybody to be supportive of public education. The future of our city, in large measure, is going to be a result of what we do in public education. … It’s not the only factor that causes a city to be successful, but it does determine the direction and quality of a city or state.”
Nothing to hide
One positive aspect of Saturday’s meeting was the presence of city officials, Liddell said.
During last year’s budget discussions, Columbus Mayor Robert Smith and the City Council requested several meetings with Liddell and the five board members, but they said their requests were ignored. In frustration, Ward 5 Councilman Kabir Karriem called for the voluntary resignation of the entire board of trustees, but his motion failed 3-2.
This year, Liddell extended a personal invitation to the mayor and council, as well as various community leaders, to attend the budget planning session.
Ward 1 Councilman Gene Taylor, Ward 3 Councilman Charlie Box, Ward 6 Councilman Bill Gavin and several city officials attended the meeting. Smith, Karriem, and Ward 2 Councilman Joseph Mickens did not attend.
It was an attempt by the district to be transparent and communicate more effectively with city leaders, Liddell said.
“Teamwork is very important,” she said. “We’re making a lot of progress in building that bridge and closing those gaps. … We don’t have anything to hide.”
Both Gavin and Box said they were appreciative of the invitation and feel it’s a good step forward.
“I think it’s going to help everything, not only the relationship between the school board and (city) leaders, but between the board and the community,” Gavin said.
He said he understands that the district didn’t reach such dire financial straits overnight, and they won’t solve their issues overnight either. But they’ve come a long way and they’re making good strides, he said.
Box was equally enthusiastic about the meeting, saying district officials seem to be taking a proactive stance.
“I think they just recognized where they are,” he said. “… I think it’s a very smart, proactive way to do it where they won’t get caught at the very last minute.”
There were few surprises in the meeting, but it was good for the district to share information with the city, said Armstrong.
“Dr. Liddell is really making a conscientious effort to take the bull by the horns,” he said. “That, frankly, has not happened in the past at all. … This was a good, positive step toward a more amicable relationship (between the district and the city) as opposed to pointing fingers at one another.”
The district is required by law to submit its 2012-2013 budget to the City Council for approval by Aug. 15.
Carmen K. Sisson is the former news editor at The Dispatch.
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