Durham Public Schools will undergo a 3 percent budget cut, following a proposal approved by the Durham Board of County Commissioners Jan. 26.
DPS's budget cut comes in response to declining revenue from sales tax, investment earnings and register deeds, which are primary revenue sources. DPS Superintendent Carl Harris collaborated with Durham County Manager Mike Ruffin on the budget cut proposal.
The county faces a revenue shortfall of $14.2 million, which prompted Ruffin to make 3 percent budget cut recommendations for DPS, Durham Technical Community College, North Carolina Museum of Life and Science, Animal Protection Society of Durham, nonprofits and contracted services.
"The school system, along with other outside agencies, as well as county departments, was asked to make current year budget cuts due to the shortfall in revenues," said Pam Meyer, director of Durham County's Budget and Management Services department.
Agencies are responding to shortfalls statewide. Gov. Bev Perdue made an executive order Jan. 13 calling for state agencies to cut budgets by 7 percent. The order is part of an effort to balance the state budget and address an anticipated $2 billion shortfall.
Perdue added 2 percent to the 5 percent budget cut that former Gov. Mike Easley had previously ordered, resulting in a total 7 percent cut.
DPS's current appropriation for funding from Durham County for the year is $105 million. The 3 percent cut from the allocated money brought the balance down to $102 million in its operational budget for this year, Meyer said.
The schools were asked to give up $410,595 in annual capital outlay and would in turn receive $2.7 million from available state lottery funds.
"What the superintendent said was that they could defer some of these projects that they had previously planned on with the budgeted funds and the money they have drawn from the lottery because they also had a substantial amount of funding from the county," Meyer said.
Finances from the $3 million cut had been going toward maintenance of schools.
"We got that money budgeted to replace roofs and buildings-$2.7 million of that $3 million was to replace roofs," DPS Chief Operating Officer Hank Hurd said.
The Board of Commissioners delayed acting on the first school budget cut proposal during a Jan. 12 meeting, which was also to cut $3 million from the budget. Harris asked at the time that the proposed cut be reduced because of expected other cuts.
The Board of Commissioners approved the revised proposal presented last Monday, said Brenda Howerton, a member of the Board of Commissioners.
"Over the course of time the [DPS Board] will make amendments to the approved budget cut as it plays out, but they don't have to officially approve it," said Michael Yarborough, public affairs communication coordinator.
In response to Perdue's cut, UNC President Erskine Bowles proposed a spending reduction Jan. 5 for the University of North Carolina system and its constituents. This group includes local public high school the North Carolina School of Science and Mathematics-a constituent of UNC. The UNC mandate is independent of Durham County budget cutbacks.
"We are not part of a school district-we fall under the University of North Carolina," said Aaron Plourde, assistant director of communications for North Carolina School of Science and Mathematics. "So when the state tells the University of North Carolina, 'You have to make a 6 percent budget cut', that is where we fall into."
"NCSSM is currently abiding by President Bowles' request for all university constituents to make at least a 6 percent budget cut," Plourde said.
In a memo from Bowles to North Carolina School of Science and Mathemathics Chancellor Gerald Boarman dated Jan. 5, Bowles assessed the impact of the spending cut. Classroom and laboratory supplies, off-campus trips, student research and mentoring opportunities likely would be affected by the spending restrictions, according to the memo.
"The academic and residential experience, research and discovery opportunities, and outreach and engagement efforts will all suffer," Bowles wrote in the memo.
The decrease in spending is intended to avoid enrollment restrictions and allow all North Carolina residents the ability to enroll. Bowles compared the 6 percent cut to an enrollment reduction of 40 students.
"By choosing to adjust per capita spending rather than total enrollment, NCSSM chooses to bootstrap the student experience rather than restrict access and opportunity to North Carolina's students," Bowles said.
With possible long-term budget reductions, NCSSM could face hiring freezes and increases in class size, he added.
"Further budget cuts for this fiscal year are still possible, of course we hope to hold the line at current reductions," Plourde said.
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