Catawba County's public school systems have decided where to cut in order to return 0.75 percent, or nearly $1 million, of their allotted state funds to the North Carolina Department of Public Instruction.

    The department, citing a revenue shortfall, asked the state's public school systems and charter schools in November for the so-called reversion of $58 million in allotted state funds.

    Catawba County Schools had to return $695,000, while Newton-Conover City Schools had to give back $112,000.

    In interviews with The Observer News-Enterprise, CCS Superintendent Dr. Tim Markley and NCCS Superintendent Dr. Barry Redmond discussed the reversions and their impact:

    1. Can you provide a list of what cuts you decided to make, where, and how much? And do they all take effect immediately, or are they “staggered” (some cuts now, some later) to cushion the blow?

    Markley: The areas for reductions were identified by CCS administrative staff in late November and were effective immediately. Reductions were made in the following areas: Career Technical Education Department — $34,000 (vacant position left unfilled); Disadvantaged Students Supplemental Funds — $60,000 (unfilled position and staff development); Academically Intellectually Gifted Funds — $37,612 (materials and equipment); Instructional Supplies Reserve — $40,000; Summer School — $240,000; Textbooks — $283,405 ($15/adm).

    Redmond: The state requested $112,400 to be reverted.  We chose to revert two classroom teaching positions which the state average for this position is $56,200. We then funded these two positions from local and paid for two beginning teacher salaries which cost $43,000 each, therefore our state reduction was $112,400 while our increased expenditures to the local budget was only $86,000, which came from fund balance.  Therefore, we did not reduce any services for this school year.

    2. How and when were these cuts determined?

    Markley: Our number one concern has been to ensure that quality instruction is not compromised. The best way to do that is to ensure we have the best teachers and teacher assistants possible. We looked for areas to cut that would not impact current personnel. The state has said that we should not impact instruction; however, any cuts made impact instruction. Furthermore, you will notice that reductions cross several categories. Thus, no one instructional area becomes totally compromised.

    Redmond: The superintendent and finance officer made the decision in October when the state required the reversion. This was the most efficient way to return the state money and not effect instruction.

    3. Is any further school board action required to finalize these cuts, or are they already enacted?

    Markley: The board has to approve any changes to the budget through a budget amendment reflecting the reversion. That was done at their December meeting. We will continue to review all current administrative policies to ensure they are congruent with budgetary cuts, especially as they relate to instruction.

    Redmond: The school board approved at their December board meeting.

    4. Has the money already been sent back to the state? If not, when will it be?

    Markley: Funding is not actually “sent back” to the state; the funding is allocated by the state and drawn down as needed.

    Redmond: The reversion has already been made to our state budget.  We draw down state funds on an as-needed basis as state expenditures are incurred.

    5. What’s been the reaction from school system employees? Are there any particular complaints or compliments about the way the cuts were handled that stand out to you?

    Markley: Given the current economic situation, most people understand these are difficult times even for governmental agencies. Of course, employees have concerns about the present economic situation. However, discussions regarding budget issues have been as transparent as possible. Every Catawba County Schools employee received a letter regarding the reversions and their immediate impact on the system.

    Redmond: No reaction because there has been no impact to the classroom or school.

    6. Has there been any reaction from students or the public?

    Markley: See answer 5.

    Redmond: No, same as above.

    7. Of all the cuts, which will have the most significant impact, and why? Which will have the least impact, and why?

    Markley: They all have impact. We run a lean budget now and every dollar we have to cut will make an impact.  There has been a concerted effort to make these cuts at the district level to ensure the least impact possible on individual schools.

    Redmond: We chose to revert the funds from our teacher allotment, so in the future we will need to increase our student teacher ratio slightly in order to avoid additional locally paid teachers.

    8. (Markley only) Could you please explain the summer school cuts, how grading factors into this and what the academic impact will be?

    Markley: The decision to eliminate 3-8 summer school was two-fold. First, the DPI Testing and Accountability policy has changed. Beginning this year, students’ first retest scores will count towards a school’s overall proficiency. Therefore, I anticipate a significant decrease in the number of students qualifying for summer school.

    Additionally, our district has adopted a new testing window that will provide adequate time for students to receive intensive remediation and support prior to their first retest. We are viewing this year as an opportunity for a student’s teacher — the one who has the best understanding of his current level of functioning — to have additional time with those students who may be deemed “non-proficient” after the first round of EOG testing. With the use of ongoing formative assessments and continuous conversations around student progress, teachers can quickly target skill areas requiring additional support prior to the retest.

    8. (Redmond only) The list of cuts seems much smaller, in number and cost, than that of Catawba County Schools. Is that just because your school system is smaller, or do you attribute that to anything else (conservative budgeting, etc.)?

    Redmond: Proportionately we incur the same reversion. We are able to use fund balance this year because we have been frugal and conservative in our budget heretofore.

    9. (Markley only) The 2009-10 budget will be discussed at Monday’s meeting. What impact do the cuts from this budget have on the next budget?

    Markley: Next year is a new budget and is not affected by this year’s budget.

    9. (Redmond only) The 2009-10 budget will soon be discussed and acted on by the school board. What impact does the cuts from this budget have on the next budget?

    Redmond: For the coming year, like everyone else, we will be cutting back in all areas where possible. We have held early discussions with central office directors to brainstorm potential reductions. A discussion needs to be held with principals before any of the potential cuts are made, therefore any suggestions for cuts at this point are speculative and should not be communicated as likely. Some of the potential areas for consideration could include a slight increase in class size to reduce the number of classroom teachers, a decrease in the number of months for assistant principals, the elimination of summer school in elementary and middle school, a potential reduction in the number of teacher assistants, a reduction in funds spent on the AVID program, reduction in staff development expenditures, reduction in months of employment for other non-certified positions such as clerical, NCWise and custodial services. ...

    10. Is there anything else you would like to include that I haven’t asked you?

    Markley: I believe an even leaner budget picture is looming for the 2009-2010 school year. The North Carolina Department of Public Instruction has been instructed to prepare a budget for next year that shows significant reductions; we are following suit. To ensure quality education, we must protect our most valuable resource — the classroom teacher and the instructional support personnel.

    Redmond did not respond.