State money shortfall looms over New Kent schools

With student enrollment numbers falling below expectations, New Kent schools could absorb as much as a $354,000 loss in state revenue by the end of the school year. School officials, however, have a plan in place to address a money shortfall.

County school board members learned of the impending revenue concern during their Jan. 27 work session.

State contributions to local school systems, including New Kent, are based on enrollment projections. Last spring when the budget-building process for the current school year was under way, New Kent officials pegged enrollment at 2,985 students. That figure was submitted to the state, and the state responded with over $12.6 million for New Kent schools.

But now, school officials anticipate enrollment at 2,903. The 82-student difference equates to the $354,000 state revenue shortfall. Latest student numbers for New Kent total 2,919, giving school officials some hope that the money hit won’t be as severe, but they are preparing for a worst case scenario.

“By the time we get into April, we’ll have a much tighter grasp on what the year end figure will be,” school superintendent Rick Richardson told board members.

In the meantime, interim school finance/budget director Sheila Minor has prepared a plan to offset the shortfall that she said takes a conservative approach and uses a combination of available funds, money carried forward, and operational savings.

Minor proposes using just over $240,000 in Virginia Public School Authority technology money on hand to solve most of the shortfall. The drawback is that the money will no longer be available for future technology initiatives, she said.

The remaining shortfall amount, almost $114,000, can be addressed using unspent money appropriated back to schools by the county and anticipated savings on the expenditure side, she said.