Lynchburg School Board approves $86M budget

After months of grueling and sometimes heated budget talks, Lynchburg City School Board approved its $86.9 million budget.

Budget highlights
- The approved budget will include the elimination of approximately 68 positions, although officials noted some could be reduced through attrition. Of those positions, 21 are teachers, which will save about $1.1 million; 7.5 are administrative or central office staff, which will save $396,130; 12 are maintenance and transportation employees, which will save $187,581; 28 are classified staff, which will save $550,187.

- The budget also includes no employee salary raises and across the board cuts. For example, a reduction in textbook purchases will save $138,000, reduction of some building security will save $130,000, the elimination of tuition assistance for employees will save $116,400, the reduction of drug testing to random screenings will save $30,000 and a reduction in central office funds by 10 percent will save $668,844. Additionally there will be reductions in school allotments, library, enrichment, instructional supplies and capital expen-ditures that will save a total of $203,981.

- Officials were also tasked with making room for some increases in the budget. For example, because the division faces laying off employees the cost of unemployment insurance will increase by $720,000. Because the federal stimulus package increases the amount of time people are eligible for COBRA, there was a new cost of $120,000 in the budget. Officials also agreed to absorb increased health insurance costs since employees won’t get raises, estimated to cost about $800,000.

- The budget includes the addition of $2.9 million in federal stimulus money through the state stabilization fund. The money will used to restore items that would be cut, such as various positions and the division’s employee assistance program. About $500,000 of stimulus funds will be used on renovations to the Fort Hill School, which will provide a place to house some of the division’s alternative education programs. Another $315,757 will likely be used to pay for increases in utility and fuel costs.

The board made up a large portion of its funding gap through the elimination of 68 positions.

Lynchburg, like other area school districts, struggled with a significant decline in state funding. It faced cutting millions from its budget when talks started in December.

“When we started this process it was huge. It was a big thing to get done,” Superintendent Paul McKendrick said during Tuesday’s school board meeting

McKendrick said no one in the school division has ever worked with such a large shortfall. He added it took collaboration to trim the budget.

In the end, the budget that was approved Tuesday ended up shrinking by about $1.5 million or almost 2 percent from the current year’s budget.

Cuts to balance the budget, though, ended up not being as severe as initially thought, due in part to federal stimulus funds. The division received $2.9 million of stimulus money through the state stabilization fund. At one point during the budget process the division was eyeing the elimination of about 80 positions.

The positions represent just some of many overall cuts. Officials, who are hopeful some of the eliminated posts will come through attrition, are also eying possible savings through a retirement incentive plan. That plan was not OK’d at the meeting, but will come to the board in the form of an official policy April 7.

Officials talked at length about the retirement proposal. It would allow employees eligible to retire to receive 20 percent of their pay in exchange for working for the division for 20 days, in addition to receiving Virginia Retirement System benefits. Retired employees would also receive health insurance. The program lasts until the employee turns 65 or participates for five consecutive years.

Officials estimated that in the first year alone, if 10 employees participated, they could save $120,425. Because some vet-eran educators at the top of the pay scale would retire, the division would save money.

It would also cut down on layoffs so severance and COBRA costs could also be reduced. Some retired employees would work as substitutes, which could save the division money as well.

McKendrick said a policy would need to be carefully crafted to look at retired employees’ performance and evaluate them and their time spent in the classroom.

“I know you’re happy about the numbers and what it’s going to look like. You also need to consider the performance in the buildings,” he said.

School administration is now charged with drafting a policy for the retirement plan and presenting it to the board at its next meeting.

“I’m living proof this thing works,” said board Vice Chairman Tom Webb, who is retired from Campbell County Schools. “It’s a Godsend, it really is for someone retiring.”

The board voted 8-1 to approve the division’s budget.

Board member Darin Gerdes, who was the lone dissenting vote, said he doesn’t believe the division will get level funding from City Council, which appropriates about a third of the division’s budget.

“We lost 100 students last year and we’re asking for the same amount,” he said, later adding, “I can’t, in good conscious, support this particular budget. I will say what we have pruned is very efficient.”

It will now be sent to City Council, who will meet with school officials on March 24 to discuss it.