Schools report revenue down, enrollment up in budget presentation

PRINCE WILLIAM, VA. - In the down column is revenue. And in the up column? The numbers of students coming to Prince William County Schools who require special education, are economically disadvantaged or are in the English for Speakers of Other Languages program, according to a presentation Tuesday by the School Board to supervisors.

"We have student enrollments continuing to incline at the same time our revenue is declining," summed up School Board Chairman Milton Johns on fiscal 2011 projections and the addition of 3,564 students.

Trends over the past five years show the schools have seen a 16 percent boost in student population, Johns said. With that growth has come an 11.4 percent rise in demand for special education; a 65.9 percent hike for ESOL services; and a 44.4 percent jump in participation in the free and reduced lunch program, Johns detailed.

"About a third of our students are economically disadvantaged," he said. "About one-in-five have been identified as ESOL."

So: Even if supervisors adopt the tax rate as advertised -- at $1.236, it's the highest level that can lawfully be passed without starting the whole public hearing process again -- schools will reportedly experience a $4.5 million budget deficit from what was originally planned. Some state and federal cuts came in deeper than expected, leaving the school system searching for alternative sources of revenue.

To start, teachers won't be receiving salary hikes this year, Johns said.

"Essentially, we are moving to a small organization with a reduced level of service," he said, explaining that overall revenues have dropped by 3.4 percent and that the after-effects of the subsequent cuts would resonate for years. "The bottom line is when we're looking at a reduction, budget cuts have to be made."

One line item of $45,000 in the school's proposal -- which is balanced in fiscal 2011, as required by law, and pretty much flat in the ensuing four years -- raised the concerns of Corey Stewart, chairman of the Board of County Supervisors. That money is targeted for the school's auditing process, and Stewart basically saw the amount as too low.

"The audit committee feels strongly the school system should have full-time auditing personnel as soon as possible," he told Johns.

A March 29 letter to Johns that was signed by Stewart, who chairs the Government, Park Authority and School Board Audit Committee, referenced a recent "healthy discussion" among members about the importance for the school to create an internal auditing system. GPS Audit Committee members include Supervisors Maureen Caddigan, R-Dumfries, and John Jenkins, D-Neabsco, as well as School Board member Don Richardson and Park Authority Board member Richard Berry. County resident Bill Broadus serves as a non-voting citizen member.

"I am writing on behalf of the GPS Audit Committee to strongly encourage the School Board to establish this recommended internal audit function within your school division," Stewart wrote, referring to a report the committee received from the auditing firm, McGladrey & Pullen, on March 18 that suggested the school fill an auditor position that was created in fiscal 2009 but never filled.

Johns thanked Stewart and said the School Board would make the final decision about the auditing process and position, when able.

Staff writer Cheryl Chumley can be reached at 703-530-3903.