Updated: Monday, 21 Sep 2009, 4:59 PM CDT
Published : Monday, 21 Sep 2009, 4:59 PM CDT
BALDWIN COUNTY, Ala. - Here is a copy of the e-mail that Dr. Hollinger sent to the parents who have an active e-mail listed with their children's school.
Dear Parent:
Thank you for allowing me this opportunity to speak with you directly about the current financial crisis facing the Baldwin County Public Schools. First and foremost, I want to emphasize that despite the economic challenges that confront us, we have not abandoned our pursuit of educational excellence.
With regard to our funding crisis, we have been forced to cut our general fund budget by more than $75 million from Fiscal Year 2009 to FY 2010. As a result, at least in the short term, it will be impossible for us to continue to provide the level of service that we have offered in the past. Nevertheless, let me assure you that our administrators, teachers and staff will work tirelessly to serve your needs to the utmost of our ability. However, the harsh reality is that on October 1 we will have 203 fewer support employees than we have today and about 175 of our current employees, who have been performing other needed functions, will be moved into the critical positions left vacant.
These employee losses are in addition to the previous loss of more than 200 teachers and approximately 190 support workers that were non-renewed at the end of last school year; all this at a time when we continue to experience exponential student growth. To put this in perspective, we are confronted with 2009-2010 academic expectations and growth while our revenues have plummeted to FY 2004-2005 levels.
Why are we experiencing this unprecedented drop in revenue?
The revenues required to operate your public school system come primarily from public proceeds, namely sales and property taxes. In the midst of the current economic recession, the drop in retail sales has been more drastic and prolonged than anticipated. In addition, due to economic factors unique to Baldwin County, the property tax proceeds to fund educational programs and services have also decreased substantially.
The vast majority of our FY 2010 budget, approximately 88%, will come from state and local revenue. In comparison only 12% will come from federal revenues, which is slightly more than usual due to the infusion of federal stimulus funds.
Compounding the problem is the fact that the Baldwin County Public School System has become the largest contributor to an equity funding process enacted by the Alabama legislature in 1998. Our system will be required to contribute over $45 million to this fund for FY 2010, which reflects an increase of more than $8 million in just one year.
Please keep in mind, the school system has no income generating capacity and our only option is to continue to cut costs through the elimination or reduction of services.
The magnitude of this economic downturn has exceeded most, if not all expectations. By all accounts even the most learned economists underestimated the depth and breadth of this recession. While in recent years we have successfully maintained $22 to $28 million in our reserve account, exceeding the state requirement, the adverse financial impact of the current economic conditions have quickly depleted those reserves. In fact, we would have needed $70 to $80 million in reserve to absorb the current shortfall in state and local revenue. Realistically, we have never had the level of revenue to support that degree of reserve funding and at the same time provide academic and student services and adequate facilities for our rapidly growing school system.
What can parents do?
Help us share with your child that fewer people are trying to do more. We need everyone's patience and understanding. Picking up around one's work area (and school) and being courteous and helpful to teachers, administrators and employees have never been so important.
Help us communicate to your neighbors and friends, especially those who might not have school children, the severity of the situation, and help us get helpful, accurate information to the public. Please refer to www.bcbe.org for the latest information, or send your questions to questions@bcbe.org.
Please remember the Board of Education cannot raise revenue; only the county and state can. Keep in mind that this is public education and will only be as good as the public desires and is willing to support in time, money, and effort.
In closing, I appreciate the opportunity to share my thoughts with you. These are indeed unprecedented times that will no doubt require unprecedented action. Nevertheless, I am confident that together we are up to this challenge and together we will maneuver this crisis and emerge an even better school system.
Sincerely,
Faron L. Hollinger, Ed.D.
Superintendent of Schools