Board reviews impacts of funding cuts in governor’s education budget

Ten district employees were recognized at Tuesday’s school board meeting for achieving Google certification. Back row from left, Renee Shannon, Amelia Satterly, Elizabeth Crowe, Ann Marie Williams, Scott Rouse, Cheryl Pile, and Drew Wartschlager. Front row from left, Amy Jo Sims, Holly Walker and Jill Mattingly.

By JIM BROOKS
Nelson County Gazette / WBRT Radio

Thursday, Jan. 25, 2018 — The Nelson County Board of Education got its first look at how Gov. Matt Bevin’s proposed state budget may impact the district’s finances for the next fiscal year.

Interim Superintendent Tom Brown called the cuts to education funding in Gov. Matt Bevin’s budget some of the most drastic he’s seen in 40-plus years in education.

Interim Superintendent Tom Brown said in his 42 years in education, Gov. Bevin’s proposed funding cuts are some of the most drastic cuts he’s seen.

Brown assured the board and the audience that financially, the district is “doing the very best we can do to tighten our belt and get the most bang for our dollar.”

MAKE UP DAYS. The board approved adding two make-up days to the school calendar to cover the two recent snow days when school was canceled. The weather affected five days in total, but three of the five were Non-Traditional Instruction (NTI) days.

Monday, Feb. 19, 2018 was approved as the make-up day for Monday, Jan. 8, and Friday, March 9 was approved as the make-up day for Tuesday, Jan. 16.

DISTRICT 1 BOARD MEMBER. Brown told the board there are two candidates for the open District 1 school board seat who will be interviewed by a representative from the Kentucky Department of Education at Central Office on Jan. 30th.

One of the two candidates will be appointed to serve as the board member representing the county’s 1st district. Brown said the goal is to have the new board member selected by the boards meeting on Tuesday, Feb. 20, 2018.

DRAFT BUDGET REVIEW. In his review of the draft 2018-19 fiscal year budget, Chief Operating Officer Tim Hockensmith explained that the big unknown is what the General Assembly will do with the state budget.

Tim Hockensmith, the district’s chief operating officer, reviews the draft budget and the potential impact Gov. Bevin’s proposed budget would have on the district’s education funding.

Until the General Assembly has established a budget, the numbers in the district’s draft budget are very preliminary.

Gov. Bevin has proposed a $20.5 million budget cut for the Kentucky Department of Education budget — the second-largest cut among all state agencies.

While Bevin says per-pupil state funding — known as SEEK money — is not being reduced, the governor has proposed substantial funding cuts in a number of programs that support education.

The county school’s 2019 fiscal year SEEK allocation is $13 million, Hockensmith explained. Since that amount is based on projected enrollment, that figure is less than this year’s SEEK allocation of $14.18 million.

As the district’s enrollment has dropped, so has the SEEK funding. In fiscal year 2017, the district received $15.2 million in funding. The district’s plans for dealing with the loss of SEEK funding involve reducing the salary allocation, since SEEK is tied to enrollment, and fewer students mean fewer teachers are needed.

GOV. BUDGET’S IMPACT. Hockensmith pointed to three parts of Bevin’s proposed education budget that would have the greatest impact if approved as proposed.

1. PENSION. The county’s contribution for the County Employees Retirement System (CERS) will increase from 19 percent to 28.05 percent, which represents about a $400,000 increase.

2. TRANSPORTATION FUNDING. The state’s transportation formula calculates that the district’s transportation costs will be $2.4 million for student transportation for the fiscal year. The governor’s budget would reduce that funding to about 25 cents on the dollar, he said.

“We still have to transport the same number of kids, operate a fleet of 60-some buses, drive over 1 million miles a year to transport 3,000 kids a day,” he said. “I hope it doesn’t get passed as proposed, but we have to prepare for the worst and hope for the best.”

Board Chair Damon Jackey listens during the discussion of the school district’s draft budget.

3. HEALTH INSURANCE. While health insurance costs rise annually, the governor’s budget includes $58 million less for school district health insurance that requested. If approved as presented, the budget will require local school districts to find the money to pay the extra health insurance costs — which could mean represent a $450,000 shortfall for the district, he said.

The governor’s budget also eliminates funds for professional development, representing another expense local district’s will have to fund, Hockensmith explained.

Overall, the governor’s budget would require the district to come up with an additional $1.5 million to cover the budget’s funding reductions.

“We will have a plan ready if that happens, but we’ll hope we don’t have to implement that plan,” he said.

MEDICAID BILLING CONTRACT. The board of education approved entering into a contract with the Lincoln Trail Health Department for Medicaid billing services. The contract will allow Lincoln Trail to file for Medicaid reimbursement on behalf of the services the district’s nurses provide to staff and students.

Robbie Leathers, the district’s director of pupil personnel, explained the target date for Medicaid billing is March 1. The contract with Lincoln Trail will run through June 30, at which time a new contract will be negotiated and approved, he said.

The Medicaid billing is expected to help defray the costs of having nurses available in more district school buildings.

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