For the first time in months, it was business as usual at the Hamilton County School Board's work session on Thursday night.
Meeting under the leadership of Superintendent Rick Smith for the first time, the board reviewed and discussed the proposed budget for fiscal year 2012.
"I thought that the discussions were very good tonight," Smith said, upon concluding the meeting. "We've been working with the board for four months on the budget, so they came fully prepared to state their position and opinion about certain things. Hopefully, next Thursday night, we'll get a positive vote for the budget."
That budget, with a suggested general purpose fund of $316,050,252, seeks to eliminate a $17.8 million deficit the school system faces in the wake of growth and a state mandated 1.6 percent salary increase for all teachers.
The budget came with it's fair share of cuts. Among them was the elimination of nine and a half teaching positions, spread throughout the system. It also recommended an increase of 45 school based positions. That number could rise, depending on the amount of students who show up to school on August 3.
"Based on last year's growth, we anticipate that we may go above an increase of 500 more students this year," Smith said. "Those 45 positions you heard about tonight are with the anticipation of those 500 students. If we get more than that, we may have to go above it."
The proposed reduction in funding that generated the most discussion was a proposal to eliminate more than $490,000 in medical benefits for contract school bus drivers. Board member Rhonda Thurman, who spoke out in favor of keeping the benefits in place, said she believed the proposed move was "not right."
"Every year, the contract bus drivers have been taking some kind of hit," Thurman said. "They've done such a good service for the county, I wish we could work out something for their health insurance. If we leave them hanging with having to pay for their bus and for their health insurance, I don't think that's right."
Ben Coulter, transportation supervisor for the school system, recommended that the budget be adjusted to leave the medical benefits in place.
"We have 49 independent contractors, with an average experience of 21 years. Healthcare was given to them in lieu of a raise 30 years ago," Coulter said. "We've only had three accidents this year, in about 800,000 miles of driving. Thirty-one of the drivers are age 55 or older. They may not have needed these benefits 30 years ago, but they need them today."
The majority of board members seemed to agree and commented on how the county's bus drivers were viewed as professionals who represented their communities well.
"Bus drivers have become an integral part of the personality of a school itself, and I think we need to support them with this insurance," board member David Testerman said.
While board members did not vote during the session, it was clear by the meeting's adjournment that an adjustment to the budget would be made in order to retain the benefits plans. The added expense would pull the $490,000 to pay for the insurance from the department's fund balance, which is estimated to be somewhere between $10 and 11 million for the year.
Christy Jordan, director of finance and accounting for the school system, said that she would be more comfortable if the department had more cushion in its rainy day fund.
"Being a conservative accountant, I'd like for us to have more than a 3 percent fund balance," Jordan said. "If we use our fund balance down to the 3 percent point, which is almost $10 million, then we will not be able to use it at all in making our budget for next year. Three percent is not much of a fund balance."
Smith agreed and said that he planned on requesting the Hamilton County Commission increase funding in order to lessen the severity of the proposed cuts.
"This recommendation is incredibly tough," he said. "We are to the point, and I don't mind saying this, that I feel like if we are asked to cut at this level, then we are going to have to have some additional revenue to do the service that this community deserves. I fully intend to get into those kinds of conversations."
Smith said that he had spoken with Hamilton County Mayor Jim Coppinger, along with several of the county commissioners, and that the response from them had been "positive."
The school board will meet in a regular session on Thursday, July 21, to vote on approval of the budget. The meeting is scheduled for 5:30 p.m. at the Department of Education board room, located at 3074 Hickory Valley Road.
