Gorman, Jones lay out facts on tight money
CMS expects to have to cut spending by up to $80million. County eyes cutting $95 million.
By April Bethea
Posted: Wednesday, Mar. 31, 2010
With Charlotte-Mecklenburg Schools and Mecklenburg County government facing major budget cuts and layoffs in the coming months, the heads of both agencies told residents Tuesday about major decisions that lie ahead.
CMS Superintendent Peter Gorman and County Manager Harry Jones spoke to more than 50 residents at the Tuesday Morning Breakfast Forum at the West Charlotte Recreation Center.
The school system is planning for up to $80 million in cuts for the budget year that begins in July, including layoffs of about 600 teachers. A good portion of the cuts are in response to loss of money from the state and county, though Gorman said the county portion of the district's budget has shrunk the most dramatically.
Gorman said CMS lost $40 million in county money for the current year.
At the county, officials have asked departments and agencies to come up with $95 million worth of cuts for 2010-11. The county has said it is expecting revenues to fall in all areas except for a slight increase in money collected from property taxes. Among the possible cuts: The county library and park and recreation departments have been asked to show what a 50 percent cut to their budget would look like.
Both Gorman and Jones fielded questions from the audience. Among the issues raised:
Why not cut employee pay, instead of having layoffs?
Jones said staff has been asked to look at 10 percent pay cuts for employees, a move that could save around $25 million but still leave at least a $60 million budget gap. Gorman said a 10 percent cut could save the school district around $60 million, but said that he doesn't currently support such an across-the-board reduction. He said the money the district has lost in recent years isn't coming back anytime soon, and the district needs to change its budget to meet that new reality.
Is CMS considering changes to the school calendar or hours of operation?
Gorman said the district wants to ask state lawmakers to let schools implement furlough days in emergencies. He said a one-day furlough of 10-month employees could save the district around $3 million.
What about stimulus and lottery money for schools?
Gorman said the district has received about $50 million in federal money that helped offset state and local cuts, but noted the money runs out in one year.
He said lottery money doesn't come directly to school districts, but instead is given to counties to pay for school construction and to the state, which distributes the money as part of its funding formulas.
Is the county still planning to build a new jail?
Jones said he doesn't plan to recommend the county borrow any money in the coming year to build the new jail. He said the county will need to revaluate its spending for construction in the near future in light of declining revenues and concern about its bond rating agency.