Local News

March 10, 2013

Sequestration agitation

Local schools ‘on alert’ for funding cuts

After President Obama and Congress missed a March 1 deadline to avert sequestration cuts, local school officials say they are “on alert” for reductions in federal funding that could impact jobs, salaries and school programs.

Sequestration refers to automatic and widespread spending cuts to government agencies — including public schools — estimated at $85.4 billion in 2013 by the Congressional Budget Office. Most federal funding for schools goes towards special education or educational opportunities for the economically disadvantaged.

But what kind of cuts will hit local schools? How much? And when?

No one is exactly sure.

“We have alerted our (school) board to potential cuts, but we have yet to receive ... concrete guidance of what areas may be cut and at what amount,” said Ron Hale, chief financial officer for Whitfield County Schools. “Some areas such as professional development could be adjusted by doing less spending. However, much of our federal funding goes to hire staff to help ... special education, English as a second language ... migrant families (families who move about the country regularly) or the homeless.”

Dalton Public Schools officials are “assuming” an initial cut this year of between $280,000 and $336,000 (5 to 6 percent) with potential for more cuts next year. For the 2012-2013 school year, city schools received $5.6 million in federal grants and county schools received more than $3 million.

Both city and county school officials approve their budgets by July 1, which begins both school systems’ fiscal years.

“My guess ... we’re going to try to look at what we can shave out of the equation on the operating side,” Theresa Perry, city school finance officer, said. “We’re really going to try to protect positions as much as possible. I think our biggest challenge could be in special education ... we will have obligations in special ed where we won’t be able to make reductions. It would difficult to make reductions there.”

When could cuts begin?

“That information has not been shared in any official capacity with staff,” Perry said. “What usually happens is that our state Department of Education gets information from federal entities, they’ll have trainings and meetings with the school staff ... on what we can and cannot do about it ... at this time, we really don’t have any official guidance or information.

“We will look at things in our federal grants and assume cuts. We’ll look at things or to see what we can pick up in the general fund — we will look at that over the next few months and come up with a plan on how we’ll cover it.”

The same goes for county schools, said Hale.

“When we get amounts of cuts — if any — for the balance of fiscal year 2013 we will ask our board to give us guidance on absorbing the cuts with our general fund budget or if we will let staff go,” Hale said. “The fiscal year 2014 plan of action — if sequestration is still in effect — will be addressed as we develop the annual budget for next year.”

The bottom line right now when it comes to federal cuts?

“We know very little about the direct impact of sequestration,” Hale said.

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