County Finance Director Albert Kiser is recommending that the county schools put $1.8 million back into its budget.
He said, otherwise, it could lead to a "maintenance of effort issue."
Mr. Kiser said the schools can always revise the budget later on during the fiscal year depending on how revenues come in. The effects of the shutdown related to the coronavirus are hitting a number of public and private budgets.
The School Board, after approving a budget with $4 million in reductions on Thursday, will meet again (electronically) on Monday at 5:30 p.m.
Mr. Kiser said:
"Dr. Johnson and Brent,
"We have performed a quick review of your FY20-21 budget and have determined that this budget with its decline in local revenues will cause County Government to have a maintenance of effort issue of approximately $1.8 million.
"No one knows when the local economy will rebound and we certainly don’t want to overreact in our budgets by reducing revenues too much or too soon. Since a budget is a working document and can be adjusted/amended at any time once the economic landscape is clearer, I would respectfully request that you increase your local revenues in next year’s budget to eliminate this maintenance of effort issue. Then, this coming fall or winter you could adjust your budget up or down depending on the economic outcome.
"Feel free to contact Mayor Coppinger, Lee or me if you would like to discuss this issue further."
In the budget just approved, cuts include eliminating employee step increases, reducing two director positions, installing a hiring freeze except for teachers, holding off on hiring out custodial service, and waiting on a new vehicle leasing program.
Officials earlier had believed revenue would remain steady despite the coronavirus effect, but Thursday night said county officials are now saying they cannot count on a 2.5 percent property tax revenue rise. Instead, the projection is now for no increase.
Brent Goldberg, finance director, also said that the sales tax is expected to decline and that will have more of an effect on the schools than the county government.
He said last year's $410 million budget ended up at $413 million. The plan was to move to $420 million based on growth money. However, that is now being scaled down to $417 million.
Chairman Joe Wingate said if new funds are found a top priority would be to install the step increases.
Cutting the step increase would save $2.8 million and doing away with the directors would save $300,000. Supt. Bryan Johnson said the directors who lose their post could move into principal jobs or other available positions.
Dr. Johnson said the virus situation may lead to a situation of "significant cuts" for the county schools.
Jenny Hill, Kathy Lennon and Rhonda Thurman voted against the revised budget, but it was approved 6-3.