Wednesday, October 15, 2008

Georgia’s budget crisis and flexible spending.

Superintendents and school boards around the state are facing incredibly tight budgeting seasons. The bottom line is squeezed so hard that this fiscal year many districts are already projecting staff reductions and all have hiring and travel freezes in place. This is not the time to come before your local board with materials requests or new budget items. Augusta (Richmond County) cut afterschool programs (see here) and many more such stories will come as boards meet this month.

Dekalb Superindent Crawford Lewis projected Dekalb will be laying off up to 200 non-instructional employees (see here for the AJC story). To his credit, Lewis protects schoolhouse employees, including janitors and media specialists. But the real problem comes down to flexibility of financial resources. 91% of Dekalb's budget is in personnel, which means that any cuts hit the bone pretty quickly. No organization can nimbly respond to an economic downturn given that reality. Even Dekalb's proposal, which is the most dramatic to be released so far, may not take effect until next school year.

I'm not sure we want our school districts to be any more nimble than that with their budgets. If these budget cuts continue – which I expect they will for a while - school districts will have to reorganize their core business processes and redesign job roles and responsibilities to meet such austere fiscal realities. Governor Perdue sent a letter to Superintendents today granting broad flexibility for districts to spend their shrinking pots of state funds (see here for the full letter). With such flexibility, districts will be better equipped to allocate resources to meet local needs, but - even then - protecting schoolhouse employees will no longer be an option.


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