New Kent School Board members voice concerns over $200,000 budget reduction for FY 2014-15

With New Kent County’s budget estimated to have a shortfall of $402,000 due to Colonial Downs’ stance of not hosting a thoroughbred season, school officials met with supervisors concerned with once designated revenues for the upcoming fiscal year being reduced by $200,000.

School board members met with county representatives Monday afternoon in an attempt to grasp new budgetary numbers proposed by county administrator Rodney Hathaway.

Hathaway pegged the new county budget for FY2014-15 at $64,807,108 during the board’s regular meeting later that night. But school board members received word that an initial increase of $570,000 more this year for their budget will be reduced to only $370,000. The drop from the estimated $13.1 to $12.9 million in local funding raised enough concerns for school representatives to address supervisors.

“I am trying to find the rationale behind the board’s [of supervisors] decision,” said District 5 school representative Gail Hardinge. “It’s going to be taxing on us to take that type of cut with a $500,000 cut from VRS (Virginia Retirement System).”

Supervisors’ chairman Thomas Evelyn indicated the ongoing saga and shortfall from Colonial Downs, but Hardinge and other school board members questioned the county’s decision to hire new staff when facing a shortfall.

“I can understand the cuts at Colonial Downs, but I am trying to get a grasp on why the county is adding positions,” added Hardinge.

A document provided by school board finance director Sheila Minor tallied 13 areas the county intended to add, including eight positions that totaled $389,382 in additional hires to impact the budget. Supervisors rebutted, saying three positions (Information Technology Specialist, Human Resources Director, and General Services Director) have been stricken from the budget, while a fourth position (County Administration Project Manager), had funding reduced. Still, school officials asked how taking $200,000 from schools to cover a countywide gap of $254,382 is fair (after factoring in $147,818 according to Minor’s numbers from additional revenue from updated real estate assessments.)

“Help us understand those priorities when the school is taking a cut from VRS and is the largest employer in the county,” Hardinge said.

District 5 supervisor Ray Davis addressed Hardinge’s concerns, referencing monetary increases supervisors had given the school board last year, as well as proposed for this year.

“We are still giving you $370,000 more than what you had last year,” answered Davis. “We also gave you an additional $500,000 last year for 90 students that aren’t in the schools.”

Hardinge countered Davis’ comment, noting New Kent schools rank the fourth lowest in spending per student. School board member Dean Simmons’ also weighed in about the additions of staff by the county.

“The only addition in staff the schools are asking is for an art teacher, and we’ve been asking for that for the last 10 years,” said Simmons. “The county is asking for more than $300,000 in positions.”

More discussion between Hardinge and supervisors focused on cash reserves. According to Hathaway, the county reserves are at 27 percent, more than 12 percent above the 15 percent recommended by the state.

“The reserves are being saved to help keep the tax rate down and help with future debt service,” the county administrator said when asked why the funds couldn’t be used to help the schools.

“But this is a financially healthy county and to be this high above in cash reserves makes me question why we aren’t using those funds,” replied Hardinge.

Superintendent of schools Rick Richardson addressed supervisors on the turmoil that cutting $200,000 from the school’s budget may cause.

“We based our current budget on earlier numbers provided to us,” said the superintendent. “We worked on restoring programs like summer school and starting a Chromebook initiative.

“As an administrator, do you know how embarrassing it is not to have a summer school initiative?” Richardson asked the supervisors. “These items that we may have to cut were restorations of programs that we now may have to go back to look at cutting.”

Hardinge returned to the discussion with her final viewpoints for the proposed funding being removed.

“At this point, we are trying to provide services for students from elementary school to the Bridging Communities Career and Technical Center in order for them to compete in today’s marketplace,” she said. “I don’t want to fight with other agencies [Fire and Rescue, Sheriff’s Office] because I know they have needs and I want to work with them.

“I just want the board [of supervisors] to explain their priorities and the stance they take when they make decisions,” she concluded.

Supervisors advised school board representatives that no final decisions have been made at this time. And while school funding may be reduced, Hathaway said after the meeting a lot of future supervisors’ decisions on the budget may be influenced by Colonial Downs’ mandated meeting next Monday with the Virginia Racing Commission and Virginia Horseman’s Benevolent and Protective Association. (See related story in this issue.)

“If Colonial Downs and VHBPA can come to an agreement, I do believe the off-track betting and thoroughbred season will raise the $402,000 in revenue that was originally budgeted,” said Hathaway. “Right now, I’m optimistic something will get done, but we’re going to have to wait and see.”