After Friday’s projections that Nevada would need $580 million to rebalance the state budget, agencies heard the message that they will be taking a hard hit and soon make more drastic cuts, including education.
Kraemer and his team will be responsible for implementing the cuts needed to maintain the district’s fund balances, including general and capital projects, while WCSD trustees will also face serious decisions about prioritizing how to revitalize and maintain aging facilities.
At Saturday’s work session, Superintendent Heath Morrison said he spent Friday talking to Washoe principals about the budget crisis. He, among many others, expect a special session will be called by Gov. Jim Gibbons by the end of February.
“This was our message to the principals,” Morrison said. “We knew we were going to get bad news. We’re going to start planning right now for a best case and worst case scenario. We’re already preparing for a special session.”
Kraemer said the district will have a joint meeting with the CFOs of the cities of Reno and Sparks and Washoe County commissioners on Feb. 1 to find “where the financial mines are” in an effort to sidestep them.
The WCSD receives its revenues from various sources but works primarily out of two funds: operating, which covers payroll, programs and services, and capital, which is used for building and facility maintenance.
Cuts already have been made to the district’s general fund. Kraemer said $2 million has been saved for retiree health benefits and property/casualty insurance also has a strong balance.
But the general fund would face a $15 million shortfall, due in part to a continuing decrease in enrollment. This school year, schools saw a 1.4 percent decline in the number of students registered for school. Kraemer said it’s expected next year will again see 1.5 percent fewer students.
The down figures of enrollment mean the district’s share of property tax would also be down by 7 percent.
Trustee Ken Grein asked if leaving positions vacant as employees leave could be an option.
“It’s definitely on the radar,” Kraemer said.
The discussion echoed statements from the staff reports of June 2009, which said the budget for fiscal year 2010-11 would be more challenging to maintain adequate reserves to the district’s operating funds.
Trustee Scott Kelley said Sunday that the district is well-equipped to face harder times.
“The district has been preparing for tough times for this for several years,” Kelley said. “The previous board of trustees was very fiscally conservative and (former Superintendent) Paul Dugan and the directors were conservative. … We are in a good position to handle this. Part of that is because we’ve gotten good at finding ways to trim from the budget and move money around to make the best impact we can find for education.”
Concerning capital projects, Mark Stanton, chief capital projects and facilities management officer, said at Saturday’s session that staff is working on putting together a finalized five-year Capital Improvement Plan (CIP) together to address older school renewal, information technology and other needs. The CIP serves as a “blueprint,” Stanton said, to identify schools with the greatest need for replacements for normal wear-and-tear use, such as roof and flooring, pavement, electrical and lighting.
The CIP would cost an estimated $100 million in a five-year period.
The challenge for the district, however, is to help the older, more dilapidated schools keep up with their replacements. Improvements have been made in recent years, but there’s still more to be done.
“Ten years ago, we were far behind, where we used to have buckets in classrooms catching water from leaky roofs,” Stanton said. “We no longer do.”
The district analyzed certain criteria for older schools – first by age then by English as a Second Language programs and free and reduced lunch students – as a means of establishing which schools are most in need of revitalization, with Sparks’ Robert Mitchell Elementary School topping the list. Mitchell is 72 years old.
Kate Smith, Florence Drake, Greenbrae and Lena Juniper elementary schools also make the list’s top 10.
Stanton said it costs about $500,000 per elementary school for revitalization.
But trustees quickly began debating on how to prioritize schools beyond age and physical need.
“We don’t have the money to do all the things we want,” Trustee Dan Carne said. “We’ve been talking about alignment and achievement. … Every project is wonderful and has benefits, but we should ask ourselves would these same projects be here if we based it on graduation rates? I would say this list would change.”
Carne acknowledged this was a list that trustees agreed to in the past but in light of more cuts potentially facing the district, the board members could be forced to reconsider.
Trustee Barbara Clark reminded the board that past research has indicated children need proper environments conducive to learning and that the conversation should be revisited in the future. She also suggested that a technology plan be developed to guide schools’ long-term needs.
“I want to see what our plans are going to be 20 years out so I know we’re heading in that direction and consider the resources needed to get to that direction,” she said. “Rather than having white boards right now, maybe in three years it’s going to be podcasts. … We cannot decide what our five-year plan is unless we decide what the priorities are.”
Superintendent Heath Morrison recommending taking the conversation to the public for input.
“You have two schools, built at the same time, both with the same pros and cons and only enough money to (revitalize) one,” he said. “One makes AYP (Adequate Yearly Progress), so do we reward that school by revitalizing it and the other school doesn’t make it. … We’re not graduating at the scale the way we should.”
The trustees approved a motion to collect feedback from the community before moving forward on the CIP.
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