Stimulus money may save jobs in Lynchburg schools

With official state funding figures in hand, the Lynchburg School Board made headway on its approximately $86.9 million budget.

While the board won’t vote on its budget until Tuesday, officials did discuss cuts and what effect the injection of $2.9 million in stimulus money will mean for the division.

Most notably it means jobs.

During previous budget discussions officials talked about eliminating about 80 positions. Now that figure stands at 68.

Superintendent Paul McKendrick said of those, 21 are teachers, compared with the 31 teaching jobs previously on the chopping block. He also said the number of positions cut could end up being lower due to attrition.

With nothing final yet, officials also noted this is only the first influx of federal stimulus dollars. Beverly Padgett, the division’s chief financial officer, said the stimulus money included in the budget is the state stabilization portion.

“We are using some of this money to add positions back into this budget, but we are not using it to increase salaries at all,” she said.

Using the stabilization stimulus funds, Padgett said, school divisions must act quickly and spend money on saving jobs.The idea of saving jobs through attrition led several board members to again broach the subject of retirement incentives. Offering funds to those who retire to offset health care expenses was brought up last week, but there was limited interest among those eligible.

Board members also discussed a plan where eligible teachers could retire and receive 20 percent of their pay in exchange for working 20 days for the division.

Board members asked if it would be possible to use federal dollars to offer such a push to those eligible to retire. McKendrick said the division will proceed with caution when spending the federal dollars. Both he and Padgett said they will check with the state education department.

“We can ask,” Padgett said. “They’re sending us information as soon as they can.”

In the meantime, prior to Tuesday’s meeting, school administrators will be crunching numbers to see if a retirement incentive is even feasible.

Once the board approves its budget next week, it’s sent to City Council, which appropriates about a third of the division’s budget.

Board member Darin Gerdes said he’s concerned with the assumption the board will see level funding from the city. He noted the city manager recently proposed a 3 percent pay cut for city employees in the next fiscal year.

“I’m worried if we push this budget through and we don’t have level funding we’ll be back to the drawing board,” he said.

Other board members said the division has requested level funds because that’s what it needs.

“We have to ask for what we need to keep this school system strong,” said board member Regina Dolan-Sewell.

Gerdes said during the tough economic times it seemed “patently unfair” to ask for level funding.

Dolan-Sewell said the school division is certainly sharing the burden in the toughening fiscal climate, noting the planned elimination of 68 positions.

Ultimately board members agreed to disagree, before acknowledging the unusually tough budget cycle and thanking the community for its input.

The board is scheduled to vote on its 2009-2010 budget at its 5:30 p.m. Tuesday meeting in the school administration building.