AIG News
Budget Information
January 2010
- NCDPI Chief Financial Officer Philip Price provided State Board members
with an initial overview of the 2010-11 supplemental budget process.
Supplemental budget requests must be finalized and submitted to the Governor
in February.
To set the stage for Board members' discussions of their expansion request
over the next few months, Price outlined recent developments in the public
schools' budget and the state budget outlook. The 2009-10 budget year
required $780.8 million in budget reductions, and for 2010-11 an additional
$210.8 million in reductions bringing the total budget cuts to $991.6
million. The revenue forecast has not met projections and a $111 million
shortage was reported in November. There is the expectation that the
forecasted 3.2 percent budget growth will be adjusted downward. This could
result in additional budget cuts or increased taxes to make up the shortfall.
Economic recovery is not expected to accelerate until late 2010/early 2011.
The Department of Public Instruction has been given two specific assignments
by the state budget office: build an expansion budget request for next year
with a cap of 3 percent ($221 million) and identify budget cut
recommendations to the Public School Fund totaling 3 percent, 5 percent and 7
percent (a range of $226 million to $528 million). These new reduction
targets are in addition to the almost $1 billion in reductions already
incurred for 2010-11. In developing the expansion request, budget officials
were told to focus on funding to replace funds that have been cut from key
areas, not on initiating new programs. Because so much of the budget for
public schools supports positions, it will be difficult to make additional
cuts without eliminating jobs, Price said.
Price noted that the dollar amounts involved in the Public School Fund could
be difficult to visualize for most people. As an example of what it takes to
identify $1 billion, he indicated that eliminating all state (NCDPI) and
LEA/school administration (central offices and principals) would still only
total approximately half of what would be needed. Another rule of thumb that
he provided: funding 18 teachers totals approximately $1 million.
Price requested that Board members consider how they would like him and his
staff to proceed in responding to the assignments from the budget office.
State Board Chairman Bill Harrison said that he plans to initiate a meeting
with department staff and state budget officials. Following this meeting, he
will hold a meeting with State Superintendent June Atkinson and NCDPI CFO
Philip Price to discuss options for Board consideration at its February
meeting.
