Metro » Government & Politics

School Budget: Same Problems With New Challenges

By Aaron Collier | Nov. 30, 2009, 8:30 a.m.

As a new year looms closer, officials are turning a new leaf on the school system's $26.3 million budget deficit. Many old problems remain, but a new challenge to school finance is developing: overcrowded schools.

In the past, the school system's chronic budget deficit has been the result of too many big, underutilized school buildings needing costly maintenance and repair. And the hallmark problem has been a dwindling student population with few corresponding personnel cuts and school consolidations.

In early 2008, school officials were looking down the barrel of a $13 million deficit. Chief Financial Officer Tommy Kranz explained that even additional state funding was not going to take care of all the school system's needs. At the time, the Chattanooga Times Free Press reported:

The school system has lost 1,800 students over the past five years but continues to build new schools, which is costing too much he said. On the other hand, he said, many school buildings are old and need to be replaced.

Now, less than two years later, Kranz reports new pressing budget challenges facing the district. He explains, "We are growing faster than our revenues." And school officials recently announced that they want to "spend more than $150 million for new or replacement schools." The announcement comes two months after the department of education added 42 employees to help cover an influx of 625 new students.

In fact, the newly built East Hamilton Middle/High School is already busting at the seams, and deputy superintendent Rick Smith emphasized, "We are really concerned about this (east county) cluster. It's like a cup, and we're full. We just don't have room." Though county commissioners will likely not provide additional school funding, the administration's preliminary facilities plan includes the construction of six new schools.

So while the costs of operating big, old, underutilized buildings still sparks debate, the purported need for new schools will only add more dollars to the ever-increasing school budget—a budget that must also absorb the rising cost of employee benefits and subsiding funds from the state.

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Summary

As a new year looms closer, officials are turning a new leaf on the school system's $26.3 million budget deficit. Many old problems remain, but a new challenge to school finance is developing: overcrowded schools.

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