Roanoke City Schools warn staff reductions may be needed as state funding remains uncertain

Roanoke City Schools officials told the school board April 14 they are continuing to review possible personnel reductions and other spending cuts as state budget uncertainty leaves the division with a tighter-than-expected outlook.

The board heard from Superintendent Dr. Susan White and Chief Financial Officer Kathleen Jackson that the city increased its projected local revenue by roughly $400,000, but the division is still waiting for a final state appropriation. Jackson said the General Assembly reconvened April 22 and the final state decision was expected later in the month.

"We still don't have a final answer on the state budget," Jackson said. "The Senate version increases funding for Roanoke City Schools by about $2 million; the House version increases it by almost $7 million. We have been using a conservative estimate in our planning." (Kathleen Jackson)

Jackson told the board the division's February-based financial forecast shows revenue coming in about $6.1 million below budget and expenditures about $8.5 million below budget, resulting in a net difference of approximately $2.4 million when compared to appropriations. She cautioned that the forecast does not yet reflect potential state bonus funding added in the caboose bill and said officials will bring recommended amendments to the board in May if necessary.

Dr. White said human-resources staff are meeting individually with employees affected by reduction-in-force notices and that contracts and recall lists are in place should additional funding materialize. "We have had some pretty tough conversations over the last few weeks," she said, adding that the division is trying to minimize harm while keeping students central to decisions.

Jackson also reviewed other funds: the food-services fund was forecast roughly $355,000 below revenue through February but was also running below expenditure projections; the capital fund still shows committed balances for projects (notably Preston Park) with about $7.4 million remaining for approved capital work.

Board members asked for clarity about the process for re-appropriating unspent funds at year end and were reminded that under current practice unspent appropriated funds revert to the locality and any re-appropriation would be at the discretion of city council. Trustees discussed contingency levels and noted the district's contingency is currently about 0.5 percent of the budget, below many industry recommendations.

The board will continue budget deliberations at its April workshop and return to specific reduction and reallocation options once state figures are firm.

The next procedural step is a board workshop scheduled for late April; board leaders said they will update employees and the public as new revenue information becomes available.