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HomeMy WebLinkAboutMay_26_2011_Budget_Session_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS BUDGET SESSION MINUTES MAY 26, 2011 The Iredell County Board of Commissioners met for a Fiscal Year 2011-12 budget review session on Thursday, May 26, 2011, at 6:30 P.M., in the Iredell County Government Center, (South Wing Conference Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman Steve Johnson Vice Chairman Marvin Norman Renee Griffith Frank Mitchell Ken Robertson Staff present: County Manager Joel Mashburn, Assistant County Manager Ron Smith, Deputy County Manager Tracy Jackson, Finance Director Susan Blumenstein, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Johnson FY 12 General Fund Revenue Update: Finance Director Blumenstein said that with the board's deletion of the 3.5% raise for county employees, the proposed tax rate of 50.0¢ had decreased to 49.22¢. School Budgets: Finance Director Blumenstein said the proposed FY 12 budget increased per pupil spending from $1,293 to $1,387. Presentation from the Mooresville Graded School District (MGSD): Joining the board to discuss the Mooresville School System's budget were Board of Education Chairman Karen Hart, School Board Member Roger Hyatt, Superintendent Dr. Mark Edwards, and Chief Financial Officer Terry Haas. Hart praised the school district and said that even with budgetary cuts for the past three years, the unit's academic standing and high school graduation rates remained in the state's top ten percent. She asked the commissioners to increase the educational funding, especially since the teacher/student ratio was increasing. Dr. Edwards said the unit would see a drop in academic performance if cuts continued. He said some classrooms were becoming too large, and the situation had reached a point that safety needed to be considered. He distributed handouts that contained the following information. Dr. Edwards said some high school classes might have 36 students. He said students were larger than they were in prior years, and it was difficult finding classroom and social space for them. Edwards said growth was still increasing in the district, which showed the economy might be improving, but it also meant more students. Dr. Edwards said the federal "Race to the Top" program was only a small amount of funding, and it had many strings attached. Edwards said he didn't want anyone to feel the program would make a monetary difference Chairman Johnson asked a prediction on how much the state would cut the system. Edwards said it would be between eight to ten percent. Edwards said this year approximately 25 filled positions would have to be cut. He said in order for teachers to have staff development that fundraisers had to occur to cover the costs. Edwards said the state required professional development for the school board members, principals, and teachers. Commissioner Robertson asked if the system had any funds for professional development. Haas said there was about $50,000. Chairman Johnson said the general public had the perception that if the county gave the system all the needed money, then the problems would go away. He said the lack of funding was due to state cuts, and if the county doubled up on its giving, the problems would still exist. Hart said it would help with the class sizes. She said teachers could not be effective when they had 31 students instead of 25. 2 Chairman Johnson asked what would happen if the state made an eight percent cut. Haas said the system was currently down $4 million dollars, and this was about ten percent of the budget. Commissioner Mitchell said three North Carolina governors had touted themselves as being "Education Governors." He said that for the last 25 years all he had heard was that the state officials had reduced classroom sizes. He asked why the system had so many students in the classrooms. Edwards said the system had experienced cuts after cuts, and it was difficult to explain the situation after "all of the revenue that was previously rolling in." Chairman Johnson said the county had built many schools in the past ten years and current expense had risen, but yet, people on the local level felt the commissioners didn't care for children or education. Hyatt said the referenced North Carolina governors had their "pet projects," such as More at Four and Smart Start. He said the block of dollars to pay for these had been "siphoned off' from the other programs. Hyatt said he didn't disagree with the notion of the "pet projects;" however, he had problems with "playing smoke and mirrors with that block of dollars." Chairman Johnson said the More at Four Program already had a delivery system, or that trained people were already in place for it, but yet the state created a totally new bureaucracy. Edwards said he couldn't agree more. Commissioner Robertson asked the breaking point, or at what ratio regarding classroom size would the district say it couldn't be done. Edwards said the K-3 classrooms were already at the point with 22 students. He said the district was beyond that with 28 and there would be a diminishing return. Edwards said the system was over the max in grades 4-6 as well as 7-12. He mentioned another concern was the growing number of special needs students. Commissioner Robertson asked if the state pulled back requirements for services and programs when it cut back on funding. Edwards said no, and as a matter of fact, the requirements increased. He said recently it was discovered the curriculum would be changed. Robertson asked if different textbooks would be required when the curriculum changed. Edwards said it would require different instructional materials, supplies and textbooks. Robertson asked if the state paid for the textbooks. Edwards said no. Robertson said the state had shifted the textbook costs to the counties. He asked if county requirements had lessened during the last few years when there had been budget cuts. Edwards said the county had no requirements other than being good stewards of the money. Robertson said then, the county didn't make the system's bureaucratic load bigger. He said the county also couldn't make the load any lighter. Robertson said the public needed to understand the responsibilities between the state and county. Commissioner Mitchell said, unfortunately, the commissioners would get the blame. Commissioner Robertson asked for a list of what the state provided in the past, but was no longer funding. 3 Dr. Edwards said the list would be supplied. Iredell-Statesville School System (I -SS): Board of Education Chairman Dr. David Cash, School Board Members Anna Bonham, Bill Brader, Charles Kelly, John Rogers, Bryan Shoemaker, Superintendent Brady Johnson, Director of Student Services Dr. Ron Hargrave, Director of Facilities Dr. Kenny Miller, and Chief Financial Officer Melissa Wike attended the meeting to discuss the I -SS needs. Dr. Cash said, budget wise, it had been a difficult year. He said the system ranked 114 out of 115 districts in regards to per pupil spending. Superintendent Johnson distributed the following materials and noted the system had dropped from 13th to 29th in academic rankings. Our Mission: Iredell-Statesville Schools will rigorously challenge all students to achieve their academic potential and to lead productive and rewarding lives. We will achieve this mission with the support of parents, staff and the community. Our Vision: A school system committed to improving strident learning by igniting a passion for learning. Our Values: o Student and learning focus o Continuous improvement focus o Motivated faculty and staff o Management by fact n Partnerships and teamwork o Results focus Ranking Grad Student Attendance Rate Out -of -School Suspension Days 5 Business Partners Faith -Based Partners Parent Canferences High School Crodit Recovery Energy Savings External Audit Findings Highly Qualified Teachers (as defined by No Child Left Behind) National Board Certified Teachers o... o..rll tvnan Hifi iron 61% (53'" in NC) 991 (57 m NC) 6.5°1 94 1% (55 inNC) 29"' highest in NC - 82.7%(17 in N ) ---- 1031 (20 1r) NC) 2.35%(7 i Nn G_-- -85.7%(10 NC) More than 5,000/year since 2002 40 167 0 101 65°!° 91 °A 500 courses More 2002 -$2.5 million $7.5 than 3,700 courses More than $6.3 million since Zero far the last seven years 4` lowest" Our Additional Highlights: • Mount Mourne and Nonhview IB0 World Schools received full accreditation • Expansion of the I.B. Diploma Program to South recall High School Fall of 2011 • Expansion of vocationallcareer training through the Career Academy and Technical School (CATS) in Troutman. Concentrations include: Anted Health Services, Automotive Technology and Pro -Start • Renovations and expansion of Union Grove Elementary School ($5.5 million) • Implementation of the "Leader In Me" curriculum at Third Creek Elementary, East Iredell Elementary, East recall Middle, and Statesville Middle (Partial private funding) 'Preliminary estimate based on figures provided by tho NC Department of Public lnstructton; hascd on a combination of local smre (11215), and (edeml (1141h) rankings; updated Apn12011 4 Lffects of the Grent neeessiolm State ""Ol et litst2r, _ 2008 09 $1 1 O A 15821 2009-1,9. $1,02 323.624 2010-11 $101,356,903 2011-12 7 1.UCal 11ad et 11i»tUr C orrent 1 xpensa C.a1�do1 2008 D9 $S 9 $6.0 .._ 2009- 10 $30 [ $2.4 2p10-tt $292 $1 2 lou -t2 „_ r _ •t Rcspnnse rrona l -SS tU 12educcd Funding 2009-10 1, Staff Reda,lction of 152 Positions (attrition) 2. Roduced all adnooist,stor. ..tat ies by 2% 3. Rcducod Central Support Services staff 4, 131imittated summer school 5 FIlimmuled Univa'eat Breakfast Program 6. lncrcasccd class siics 7. Reduced funding for Supplies, materials, textbooks and teclnlalogy 8, Reduced buss ,.utos by optimization plan. 9. Rcduccd n.ileage it.inibut:scment from $.52 to $.35 for staff 10, Rcaluced staft devolopmcnt fundiog 2010-11 All reductions for 2009-10 kept in place — these additional rcductions were n�xtcic. 1. Stnffrcduction of 20 pos itions(attrition) 2. Rccluocd Centrai Support Services staff 3. lbliminatud all perthrmtoice bonuses, for staff 4_ Rlinainate 625 oiddlo and high sohcol bus stops 5, 1 ercased class sizes 6. Roduced sp¢nding on supplies, neater ials, textbooks orad technology 7. Reduced local suppler+cat facer all s taff(C:crtifxcd 8%-69fo, Classified N. Budget .$ 1.9 rxaillion ft tall fiutd badallee Superintendent Johnson said that two years ago 100 teaching assistant positions were eliminated, and there were currently 370 positions. He said, however, the proposed House budget only recommended assistants for kindergarten and the first grade which would be 139 positions for Iredell-Statesville. Johnson said the Senate proposal cut even deeper because it only recommended the positions for kindergarten. Supt. Johnson said this would mean a reduction in force of 300 assistants. He said the teaching assistants also drove the buses, and the system could not operate 225 buses, with 4 routes a day, with 70 drivers. Johnson said 625 bus stops had already been eliminated for middle and high school students. Handout Regarding Teacher Assistant Cuts Commissioner Robertson asked if the state would pay someone to only drive a bus. Supt. Johnson said yes; however, the individual would arrive at work at 5:30 a.m., work about two hours, go home, return in the afternoon, and work for about two more hours at $11 an hour, with no benefits. He said individuals had to obtain a CDL license and be healthy enough to pass the Department of Transportation physical. Financial Officer Wike said the system would actually have around 110 drivers, as some were not teaching assistants, if the Senate proposal were passed. 6 Supt. Johnson said that if more teaching assistants had to be laid off, teachers would be encouraged to drive buses along with other school personnel, such as custodians. He said it would not be a preference for the teachers to drive the buses; however, due to them not being available for student remediation work and faculty/staff development meetings. Chairman Johnson said that if the state made an eight percent cut, this would mean the system had gone from a high of $110 million in 08-09 down to $93 million this year. He said that if the county manager's recommended budget were adopted, the system would be down about $1.3 million. He said most of the school system's problems originated two hours east in Raleigh. Supt. Johnson said next year's budget would not have any ARRA money. He said the system had received $3.9 million in federal Jobs Bill money this year; however, it would be exhausted by FY 12-13. He said the only known way to replace the $3.9 would be the use of fund balance, and at the beginning of the year the system had $7.5 million of which $2 million had been budgeted. He said the staff had been active in seeking grants, and $17.5 million had been obtained. Commissioner Mitchell asked why I -SS was the lowest in federal funding. School Financial Officer Melissa Wike said the unit did not qualify for impact aid money. She also said that lottery money was not factored into the per pupil expenditures. Wike said the wealth of the county, which was listed as 34`" in the state, impacted the federal funds, and the county's low tax rate affected the state assistance Supt. Johnson said the state was proposing to pass school bus replacements to the counties. Commissioner Mitchell said the state would not have a budget until October. Chairman Johnson mentioned that $1,225,561 had been included in the FY 11 revised budget, and this originated from increased sales taxes and the Third Creek debt service. He asked what the system planned to do with the money, especially since there had been concerns about maintenance for the facilities. Dr. Miller said the system had been supplementing maintenance costs with lottery funds. He said, however, the lottery funding would be diminished this year. Miller said two years ago, $1.7 million came from lottery funds, but the amount would be down to $700,000 next year. He said there would be additional money, locally, but it would be "washed out" by the lottery fund losses. Chairman Johnson said it appeared that there would only be a gain of about a half a million. Miller said buses cost $85,000 a piece, and the system would need new ones. Dr. Hargrave said the system would probably need five buses this year. Commissioner Mitchell asked if five would be needed every year. Hargrave said none had been purchased in the last few years, and the system was behind in bus purchases. He said at some point the system would have to double up on the purchases. Chairman Johnson said it appeared the county was looking at $500,000 for new school buses, and this was an expense previously paid by the state. Miller said lease purchases could occur, but a significant amount of dollars would have to be budgeted. He said building maintenance had been delayed during the last couple of years, and deferring smaller issues only created larger ones in the future. Miller said the first priority was instructional services so custodial, maintenance, and buses took financial hits to help with the classroom situation. 7 Commissioner Griffith asked if contracting out the bus service had been researched. Supt. Johnson said this occurred in the City of Statesville system many years ago, and there were many problems, especially with the caliber of people driving the buses. Griffith said in Hershey, PA the bus services were contracted out. Miller said no money would be saved by the contracting, plus in trying to make a profit, some companies would not maintain the buses and this would cause breakdowns and safety issues. Griffith said all costs needed to be considered in determining the most cost effective method. Handout from I -SS Showing FY 09-09 Budget and the Proposed FY 11-12 Budget: School Board members, Bill Brader, Charles Kelly, Anna Bonham, Bryan Shoemaker, and John Rogers all briefly spoke on behalf of the Iredell- Statesville System. Mitchell Community College: Board of Trustees Chairman Dr. Ralph Bentley, Mitchell President Dr. Doug Eason, and Finance Director Dick Lefevre discussed the college's budget request. Bentley said there was over 100,000 sq. ft. of new construction that needed to be maintained. He said during recent commencement ceremonies that 38 nurses graduated, 347 GEDs were conferred, and over 1,000 certificates and diplomas were awarded. Dr. Eason said the college had the fourth highest enrollment in the state. He said parking was a "perennial" problem and recently a new parking lot was constructed at the Mooresville 9 campus. Eason said the county's proposed budget for operating expenses was insufficient and the current year could not be closed out without using capital. He said the college had requested $2.8 million in current expense, and the county was proposing $2.5 million. Robertson asked what happened if only $2.5 million were allocated. Eason said capital funds allowable (10%) would be transferred, plus the college would approach the commissioners to transfer additional funds. Finance Director Blumenstein said the capital would actually be surplus out of debt service. Social Services Budget: DSS Director Yvette Smith, Business Manager Janet Barker, and Income Maintenance Supervisor Lynn Deal attended the meeting to discuss the social services budget. Smith said the department was experiencing an increase in clients, and they crossed all economic levels. Commissioner Griffith mentioned the $220,000 travel line item. She asked if the employees had vehicles or if they were being paid by mileage. Smith said the majority of the line item was for mileage as the department only had five cars. Griffith mentioned the possibility of using some of the law enforcement vehicles that were recently surplused. She asked the amount it took to run a vehicle. Blumenstein said vehicle insurance would have to be provided. She said about 80% of the DSS workers received monthly travel reimbursements, and a cost estimate would be provided on the usage of vehicles vs. mileage. Due to the increase in insurance and bonds, Blumenstein said she would also provide a list showing the different types of ratings for the departments. Health Budget: Health Director Donna Campbell, Administrative Officer Bill Griffith, and Nursing Director Susan Johnson explained the health budget. Campbell said the staff was making concerted efforts to be more efficient, especially after several years of being in an economic downturn. She said the state budget was an unknown, and it was a moving target. Campbell said the staff had been cross -trained, reorganized, and was trying to hold the line on expenses. She said the environmental department currently had a backlog of cases. Chairman Johnson asked how many people worked in environmental health. Campbell said 15.5 people. Commissioner Robertson asked about the sliding fee scale revenues. Nursing Director Susan Johnson said the private pay revenues were actually ahead of schedule. Crossroads Behavioral Healthcare: No discussion occurred on the mental health budget due to the May 24 motion to hold Crossroads' allocation at the FY 10-11 level. ADJOURNMENT: The meeting adjourned at 9:15 P.M. (Next meeting: Tuesday, June 2, 2011 beginning at 5:30 P.M., in the South Wing Conference Room of the Iredell County Government Center, 200 South Center Street, Statesville, NC.) Approval: 9 Clerk to the Board