Dr. Jim Scales is making a pointed effort to prepare the public for what he describes as a “need to change the model for how education is funded and how those dollars are spent in Hamilton County.” Yesterday, he participated in an online chat with the Chattanooga Times Free Press and assured one questioner that:
We are done with school closures this year. However, we will be discussing future possible school consolidations with our Citizens' Advisory Committee beginning April 21. We will be discussing short and long range plans with that committee with a final recommendation to the board later in the year. We have serious financial hurdles and the public needs to understand that we cannot solve our budget issues by just closing schools.
Business Trend, the Chamber of Commerce’s quarterly magazine, recently published an article by Dr. Scales and Chief Financial Officer Tommy Kranz in which they lay the groundwork for changing the model for education funding and spending. According to the article, small neighborhood schools “are costing the district roughly $18 million a year beyond what we receive in state funding.” Dr. Scales and Mr. Kranz write that “local data indicate that our larger schools perform just as well as smaller schools on standardized tests,” suggesting that the public come to terms with larger schools. Dr. Scales has been forthright about school consolidation since November when he said, “Some (schools) might have to be larger and the community will have to come to grips with that.” But the administration’s plan to close four schools next year is not enough to address future budget shortfalls. Dr. Scales and Mr. Kranz explain that the plan “does not solve future budgetary concerns as we face a projected $15 million hurdle in FY 2011 and another $4 million in FY 2012. Nor does it identify resources for $14 million in annual deferred maintenance that is critical to maintain our aging buildings.” As Dr. Scales commented, closing schools is not the only solution. But future school closures may be inevitable. Hamilton County Department of Education is a system with more than 40,000 students, 6,500 employees, and 78 schools whose 2009 budget called for over $347 million in total expenditures. As Scales and Kranz state, “With 90 percent of our dollars dedicated to staffing and buildings, we cannot balance the budget without looking at these areas”—A point Kranz has been making since December when he said, “…when I’m trying to balance the budget and 90 percent comes from people and buildings, it doesn’t give me many options.”
Aaron Collier
stephen42 on April 16, 2009
Aaron, could you break down 6,500 employees based on schools vs central office staff? Or maybe just positions or titles?
Kranz mentions staffing but he never actually states what the associated costs are. Ever since the county and city school system merged I have heard of overlapping positions in central office staffing. I remember during the merger that it was supposed to save big $ by eliminating overlapping positions and duplicate jobs but I have yet to see any RIF measures. I know it is a very unpopular subject but it is one that needs to be addressed immediately, if HCDE wishes to remain viable.
AaronCollier on April 16, 2009
This is a good question. The system currently employees roughly 3,000 teachers. Including administration, it has over 250 employees in central office (roughly derived from the central office directory).
We will be working on getting detailed information to you (readers) as school administrators balance the budget.
Regarding RIF measures, Dr. Scales and Mr. Kranz are proposing to cut Central Office by about $2 million.