Feb. 19, 2009

                                                                                               
Budget struggles

When your county manager declares everything is relative in the middle of a budget discussion, it’s a good bet next year’s finances aren’t looking too cheery. And that’s precisely what Wake County Manager David Cooke told members of the county school board this week when they discussed 2009-2010 budget projections.

Unlike past years when assessed property values grew an average of 5.5 percent a year, the growth rate is predicted to drop sharply to 2.5 percent in 2009-2010. The county depends heavily on growth in property tax revenue to cover increasing costs in the schools.

But the county also relies on property taxes – and to a lesser degree sales taxes – to pay for other operations and make debt payments on the bonds it sells to finance building programs. The largest building program belongs to the schools, and projected revenues won’t cover both county operations and school construction plans through 2012. After a sharp drop this year, growth in assessed value is expected to slowly increase.

That means the district’s longer-term building plans are now uncertain and the district will be fortunate just to pick up $6.6 million next year to cover enrollment growth. Three new schools planned for the 2009-2010 school year will be ready. So will four schools planned for 2010-2011. But availability of the newly-named Forest Ridge High School in Wake Forest is uncertain for 2010. Delaying that school could force the district to revisit a large part of the reassignment plan it just approved earlier this month.

Two elementary schools planned for 2011-12, major renovations at Wilburn Elementary in Raleigh and future land purchases are also uncertain.

Cooke isn’t saying the district must abandon plans to build 10 new schools to accommodate unprecedented growth the past few years. Slowing enrollment, help from the federal stimulus bill and an economic recovery that outperforms the county’s conservative estimates could keep the building program basically intact.

“We’ll struggle through this,” Cooke said. “But we’re going to be in better shape in Wake County than many counties in North Carolina.”

And for now, that will have to suffice as good news.

School finance report

The economy has to rebound sooner or later. When it does, a new report by the Public School Forum of North Carolina suggests Wake County has some catching up to do.

According to the 2008 Local School Finance Study – a document that has become a staple in understanding local efforts to pay for public schools – Wake County’s relative effort in supporting its public schools ranks 65th out of 100 counties.

Relative effort is defined as a county’s actual effort to support schools measured against its ability to pay. Wake County was ranked 19th in the state in its ability to pay, a reflection of its above-average property values and higher per capita incomes. A copy of the full report can be found here.

Governance report

A bill filed this week in the state House calls for the state schools superintendent to be appointed by the governor, adding another twist to a story that is likely to keep bubbling to the surface for the rest of the legislative session.

The Public School Forum issued a report on the topic last week recommending ways to improve the management and accountability of public schools. The report, which followed six months of study, included a recommendation that the State Board of Education appoint a commissioner of the statewide K-12 system.

 The study was co-chaired by Wake Education Partnership President Ann Denlinger, Raleigh attorney Gerry Hancock and state Rep. Doug Yongue. It can be found here.

Gov. Beverly Perdue pushed the issue into the spotlight last month by appointing former Cumberland County schools superintendent Bill Harrison to run both the state Department of Public Instruction and lead the state school board. All of the moves are designed to improve a fractured governance system that most feel is counterproductive to statewide reform.

Noteworthy

….  Eighteen Wake County magnet schools were selected as schools of excellence or distinction last week by Magnet Schools of America from a pool of more than 2,000. Five of those are in the running to be named the top magnet school in the country. Magnet Schools of America is a network of thousands of magnet schools that promote equity, diversity, and academic excellence.…

...Once the anxiety ebbs in the current budget crisis, there is one particular item in the federal stimulus package of $787 billion that might be worth remembering. The item is $5 billion in discretionary grants that will be distributed by U.S. Secretary of Education Arne Duncan. While just a small slice of the overall package, it is an unprecedented amount of money for the feds to use as incentive grants for schools to raise standards, close achievement gaps and ensure highly qualified, effective teachers aren’t concentrated only in wealthy suburban areas. A graphic from Education Week offers a broader view of where the stimulus money will be spent. Wake should know in the coming weeks how much might be available locally.