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Hernando Today

Hernando Schools To See Cutbacks

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By LINNEA BROWN

Published: May 29, 2008

BROOKSVILLE - Officials in all departments at the Hernando County School District are gearing up for a tough budget year.

Despite the fact that the district is set to increase by 364 students next year, state and federal cutbacks are forcing district officials to reduce their operating budget from its current $172 million to $169.9 million.

Finance director Deborah Bruggink said the majority of the decrease is attributable to the Florida Education Finance Program, which is the funding formula for Florida public schools. It is based on projected student enrollment, cost of living and students enrolled in special programs.

The district's projected student enrollment for 2008-09 is 23,069, or 364 students more than last year. Despite this, the district will be getting less per-student funding from the state. The overall FEFP funding per student for 2008-09 is $6,748.14, or $117.67 lower than the previous state calculation of $6,865.81.

"We're getting less money for the same students we served last year," Bruggink said.

Across the state, Florida's 2008-09 FEFP for K-12 public schools is $18.4 billion. That is lower than the state's projected calculation by $332 million — and when you compare the proposed 2008-09 funding of $18.4 billion to the $19.3 billion at the beginning of 2007-08, the funding drop is closer to $900 million, Bruggink said.

"We're in the same boat with other districts," she said.

Much of this is due to a statewide economic downturn caused by falling home prices, increased home foreclosures and mortgage delinquencies, credit problems with solvency and liquidity and increasing oil prices.

Other revenue sources have dropped, as well, placing even more pressure on the district.

While monetary figures are not final yet, Bruggink said she is anticipating an increase in health insurance costs by 12 percent.

Due to rising fuel prices and increased transportation needs, she is expecting a 13 percent increase in the amount the district is currently paying for diesel fuel, or $1.9 million more than this year.

"We're also expecting an increase in utilities because we're opening a brand-new school," she said, referring to Explorer K-8, the new 2,100-student school located off Northcliffe Boulevard in Spring Hill.

Since salaries for teachers and staff make up 83 percent of the budget, district officials are currently assessing all positions to identify which could be eliminated to save money.

The cuts would not rely on layoffs, but instead would funnel teachers and staff between schools into open positions, and leave other positions unfilled.

"We're a highly labor intensive program," Bruggink said. "It's not just teachers, but other positions that are being looked at, as well."

Officials also hope to have enough money to give raises, but don't anticipate they will be as high as those given this year, she said.

Another avenue where money will be lost locally is the district's debt service funds. The projected 2008-09 debt service funds budget is $40.9 million, which is $800,000 more than last year.

The debt service funds are used to account for the revenues received to pay the principal and interest payments on the district's long-term debt, such as general obligation bonds, lease of computers and portables, certificates of participations and energy performance contracts.

The district's projected 2008-09 project funds budget is also decreasing to $213.9 million, or $28.9 million less than last year. Project funds are used to account for the revenues received from the local capital improvement millage, state public education capital outlay funds for new construction, maintenance and the district's charter school, 10-year sales tax, impact fees and capital outlay and debt service funds, Bruggink said.

"The maximum used to be 2 mills, but now it's 1.75 mills, so we're going to lose $2.2 million in property tax revenue," she said.

Bruggink said she based the budget on the projected revenues and preliminary millage rates from House Bill 5001, dated April 28. The actual required local effort millage will be certified by the commissioner of education on July 19.

And it's not over yet, with additional cuts expected from the state, Bruggink said.

"These numbers may not be that strong. It may actually get worse," she said.

Though not drawn from the district's budget, the food services department will also increase school lunch and breakfast prices by 5 percent.

The board will review the 2008-09 budget at a 1 p.m. workshop Tuesday, June 3.

Reporter Linnea Brown can be reached at 352-544-5289 or lbrown@hernandotoday.com.

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