School Budget Report

W-jcc Taxpayers May Face Increase

December 06, 1990|By LUCINDA COUTO Staff Writer

JAMES CITY (COUNTY) — Williamsburg-James City County Schools will require a $2.67 million increase in local funding for fiscal year 1992 in order to offset an anticipated 10 percent reduction in state aid while maintaining the current level of services.

School Finance Director Arnold Nye said Wednesday the FY91 budget of $32.6 million will need to be increased by $1.8 million for FY92, which begins July 1, to keep pace with services in the next school year. He said he expects a a loss of $872,195 in state funds, bringing the total increase to $2.67 million.

Based on the contract which governs the joint school system, James City will have to pitch in an additional $2.3 million and Williamsburg $362,240 to make up for the shortfall.

Nye said he is basing his assumptions for increases on Consumer Price Index predictions that cost of services will rise by at least 6 percent for the city and county. The index - used to determine the cost of living - takes into consideration increases in food, housing, clothing, transportation, medical care, entertainment and other costs for a community.

In Nye's "report of assumptions," he also outlines how the school board could deal with cuts of 5 percent, or $436,197, and 15 percent, or $1.3 million, in state funds. He said he assumes at this point, however, that the cut will be 10 percent.

Nye said Gov. L. Douglas Wilder initially said state Standard of Quality funds would be cut by 5 percent for all divisions. The governor later said wealthier communities, of which this school district is one, will take bigger cuts.

Standards of Quality funds are directed at such programs as the gifted and talented program, special education, vocational education and duty-free lunches. The system received $7.6 million for FY91.

"At this point we have no firm guidance from the state," he said.

He also made the following assumptions in the report, which the board will consider at its Dec. 18 meeting:

The cost of employee health insurance will rise 25 percent, as it did this year. Insurance is budgeted at $940,000 this fiscal year. A 25 percent increase in will bring the FY92 cost to $1.17 million.

A principal will be hired for the new middle school with at a salary between $43,000 and $61,000.

Gasoline costs will increase by 31 percent because of the Persian Gulf crisis, from $190,000 budgeted for this fiscal year to $248,900 for next fiscal year.

Two scholarships will be created at $1,500 each for a minority senior interested in teaching and willing to return to work for this system.

Nye does not include teacher raises in the report since a minimum is usually set by the state. He said he is not sure the state will set a guideline this year because of budget ills. "We won't know until the Assembly meets, so we wouldn't want to say at this point," he said.

Teachers were given 5 percent raises this fiscal year, Nye said.

The report, if OK'd by the board, is intended to set the direction for the fiscal year's budget the board is scheduled to approve in February, said Nye.