Monday, January 31, 2011

A Sea of Red

An Educated Patriot: Last Tuesday there was a sea of red confronting the School Committee, why is there so much distrust between teachers and the School Committee?

Dave Croston: I honor each and every teacher in our system. While I can't discuss our contract negotiations, I believe the Union and the School Committee are struggling with a new era of public education. There simply isn't any more money: state, town, or cash reserves. Let's look at some facts:

State

The State has predicted a $400 million deficit next year. Governor Chafee's proposed sales tax may bring in an additional $80 million for education. Tax receipts are up $50 million in the first six months and may bring in a total $100 million in unexpected revenue.

At the end of the day we are still looking at a $200+ million deficit. Adding to our budget difficulties is the State Retirement System which did not yield enough investment revenue to cover expenditures. This will mean the School District will be asked to pay a higher percentage next year.

The State reformed the Education Aid formula last year, committing to adding 2.5% in total State Aid. Unfortunately, Portsmouth was on the negative side of the aid formula and will be cut approximately $2 million in funding. While this will be spread over ten years, it is still a serious reduction. Since the State is in financial difficulties, it cannot afford the 2.5% increase and it is predicted that the new formula may be moved to a 2013 start date.

Portsmouth, as well as the State, has benefited from a higher reimbursement for Medicaid reimbursement under the American Recovery and Reinvestment Act (ARRA). That increased reimbursement will end and we will see a reduction in Medicaid reimbursement of up to 25%.

The State is in rough shape and we cannot look upstate for help. Even changes to S3050 will do little but pass the financial burden to the town.

Town

The Union and the School Committee must be student's of history - recent history. This summer I took my vacation time to walk the streets of Portsmouth getting signatures for the School Referendum. We did what many said was impossible, gaining enough signatures in two weeks to get a petition on the ballot. Our excitement was short-lived as we handily lost the Referendum. The $765,000 we were requesting was critical, in my mind, to maintaining growth within our system or even parity of programs.

The Portsmouth School Committee faces a structural deficit of roughly $700,000 going into next year. We may have some limited cash reserve from last fiscal year, but these are one time funds. We have a structural problem that the past school committee solved by wiping-out all cash reserves; those funds would have been best used to address a financial transition over the next three years.

School Reserves

As I mentioned above, the past school committee when faced with canceling Winter and Spring Sports turned to the cash reserves. It wasn't just sports as art was re-funded for the full year. We simply do not have enough money in the budget to keep our system status quo - that is a very unpleasant fact.

What now

The School Committee must control costs in order to save as many programs as possible. It is truly a desperate situation. We must work together to address long term stability in our system. If we fail, I'm afraid the Portsmouth School District will cease to be independent - it is that serious.

I would hope that the facts drive the Union and the School Committee together. This is a very different time and it will require a different level of thinking and sacrifice. Any teacher I have talked to agrees with me, so I am hopeful we can get to contract quickly.

Your question premised the sea of red being the teachers, but the true sea of red is our budget. Years of cuts and the unwillingness of Portsmouth resident's to support the Referendum leaves us with very few options.

No comments:

Post a Comment