According to projections presented this week at the Gilmer County Board of Education Workshop, the board’s fund balance will be in the red by 2017. During Monday’s presentation to the board (and one citizen), Financial Director Julie Cantrell presented three different and individually grim scenarios based on a stabilizing revenue stream, meaning among other things no further decrease in the county’s tax digest. Each scenario outlined a five year projection, ending in 2017. In each scenario, the fund balance incrementally decreases until finances hit the negative by 2017.

Cantrell said these projections are based on the faith that the county’s tax digest does not decrease this year. If it decreases, the board will lose tax revenue, thus losing needed money to fund federal and state mandates, in addition to maintaining school operations. The other major component of the projections was certain increases. These increases include 1) mandatory step increases for both certified and classified employees, totaling $320,000 2) mandatory increases for the employer’s contribution to the Teacher Retirement plan, from 11.41 percent to 12.28 percent, for a total of $165,000 3) health care increases due to the ironically named Affordable Care Act (Obamacare). For FY14, health insurance increases for classified employees will cost $340,000 and for certified $385,615. Cantrell also said the county may need to purchase a $100,000 special education bus.

The first budget scenario considers only the above stated increases. The second scenario, though, factors in adding four instructional days to the current school calendar. For these four days, the board will spend $64,000 on classified employees and $412,000 on certified employees for a total of $476,000.

“Given this scenario,”

Cantrell said,

“including the four days…(the result) would be $2.3 million; that’s over and above our current budget.”

The third scenario adds 10 days to the current school calendar, costing the board one million dollars to fund certified employees for these days, and $160,000 for classified employees for a total of approximately $1.2 million.

Superintendent Bryan Dorsey also showed other concerns about next year’s budget and the board’s subsequent finances.

“They’re predicting an additional growth at EES (Ellijay Elementary School), because of kindergarten,”

he said,

“Mountain View needs an additional third grade teacher to keep up with current numbers (which) are similar projections for next year.”

He went on to say that bond funds may be reduced next year by 20 percent. As such, he said he didn’t know if the district would be able to receive bond money next year. He also mentioned the demand for technology in the curriculum, also mandated. Additionally, next year’s budget includes two tech specialists, one counselor, another Security Resource Officer, teaching positions and computer lab para-pros. Further, Cantrell mentioned Regional Educational Service Agency (RESA) obligations. By law all school districts are required to join a RESA organization. Cantrell said the cost of Gilmer’s RESA membership will increase next year. Also, since Gilmer is a Title One school, the district will likely see Sequestration cuts, which have yet to be factored into the budget plan.

In the face of upcoming financial challenges, the only solution discussed at length was possibly cutting hours, not full jobs, in the food service area. School Nutrition Director Linda Waters said she proposed cutting four hours per school.

Following the budget presentation, Superintendent Dorsey told the board it would not make any budgetary decisions at this point.

“We’re still evaluating all this,”

he said.

The board will hold its regularly scheduled meeting Thursday night.