Board of Education Approves 2011-2012 Budget Addressing Unprecedented $10 Million Funding Shortfall
The mood was somber at the June 28 meeting as the Federal Way Board of Education approved the district’s 2011-2012 budget – accommodating an unprecedented budget shortfall. The final budget reflects a total of $10 million in reduced funding including $8 million that the district anticipated in their original budget recommendation, as well as an additional $2 million cut in salary funding from the state.
"The actions of the Legislature, in not giving districts legal authority to implement furlough days for the coming school year, exacerbated what was already a no-win situation," said Superintendent Robert Neu. "The Board and I have been put in the unfeasible position of creating a budget to move student achievement forward, with vastly insufficient funding from the State. I want to thank citizens, community leaders, students and staff for their input through this process. We will get through this together -- so that our students will get the rigorous education that they deserve."
Superintendent Neu’s original budget recommendation was presented on May 10 and anticipated $8 million in reduced funding. Those funding reductions were made in a variety of areas, including the reduction of approximately 56 teaching and counseling positions, 5 custodial positions and 215 paraeducator hours, which translated to an additional 32 positions being cut. Three weeks later, the district learned the state’s final budget cut back salary contributions to each district by 1.9 percent for certificated staff and 3 percent for administrative staff, resulting in an additional $2 million loss for the district.
The district had few choices for how to handle the salary reductions, said Board President Tony Moore. “We could make additional program cuts, negotiate with all nine labor unions to cut things like pay or staff development days, or absorb the losses for one year using savings,” he said. The board opted to absorb the losses by going to the fund balance. The district will use $2 million in savings to accommodate the salary cuts for next school year.
The $2 million drawdown will bring the district’s savings to an unprecedented low - from 5 percent to 2 percent. The district will be unable to absorb the funding shortage from the state for more than one year, however.
The board did not have the option of shortening the school year in 2011-2012. It has no legal authority to do so without applying for approval from the State Board of Education, and the deadline to do that for 2011-2012 has passed, McLean said. The board opted not to cut additional programs because layoffs and transfers were already in process. “Bargaining with all 9 labor unions would have resulted in employees being affected differently by the cuts,” McLean said. “We felt it was important to impact everybody in the same way.”
Furlough days are the more equitable way to evenly distribute the impact of the state budget cuts to salary, McLean said. To accommodate the state salary reductions in the 2012-2013 school year, the district will request that the State Board of Education approve three furlough days to the district’s regular school year. The furlough days will bring the regular school year down to 177 days from 180. This will not result in less instructional time, as the furlough days will replace currently scheduled data days and student-led conference days. McLean said the three furlough days would likely come in January, February and March 2013 and the entire district will shut down operations, similar to a snow day.
Furlough days for the 2012-2013 school year have been accepted by almost all of the labor unions as of June 28. Chuck Christensen, Assistant Superintendent of Human Resources, applauded the unions for working cooperatively with the district during these times of financial strain. “Our relationship with our 9 labor groups has always been open and honest,” Christensen said. "Over time we've built a trust with the unions. When we present financial information, they know it's accurate and they know what the situation is and are willing to work collaboratively with us for the best for all concerned."
More than one research organization has credited Federal Way Public Schools with getting greater results with less money than nearly any other district in the state. But, as funding continues to evaporate, the district’s ability to sustain a world-class education for all of our students will be severely tested. Federal Way is already among one of the lowest-funded districts in the state. In the past decade, funding to the district has dwindled by $32 million.
Posted: June 29, 2011