Tight funding leads school systems to follow difficult financial road

Driven by tanking revenues and years of easy spending, school systems in suburban Maryland have been forced to plunder savings and whittle down budgets by measures not seen in more than a decade.

The 2009 savings demanded by local governments in Prince George’s and Montgomery counties could result in fewer teachers in the classroom at the same time as state and federal mandates start increasing pricey demands for accountability from the schools, including tests required for graduation.

“The possibilities are grim,” said Patricia O’Neill, a member of the Montgomery County school board, responding to County Executive Ike Leggett’s recommended budget released Monday.

Leggett’s proposal, to be voted on in May by the County Council, left the school board’s $2.1 billion request short by about $51 million.

In neighboring Prince George’s County, County Executive Jack Johnson’s recommended budget fully funds the schools’ $1.7 billion request, but only after the school board drew down a reserve cache created from unfilled positions — and therefore unpaid salaries — in years past.

In 2008, the board withdrew nearly $43 million from the reserve after not having tapped the fund since at least 2003. Another $29 million is slated for fiscal 2009.

Montgomery County’s funding gap came after four years of near-agreement between the board and the council, as well as yearly total growth between 7 and 8 percent. Compounding the problem is an almost $17 million shortfall of previously expected state aid.

“We could be in a position right now of having to make cuts up to about 800 positions,” O’Neill said.

As in Montgomery County, a revenue shortage is crippling Prince George’s board, whose budget leaves 372 positions unfilled and 70 central staff positions terminated.

Over the past five years, state and federal aid to the county have grown an average of 11 percent per year, but fell to 2.4 percent for fiscal 2009. The county contribution grew an average of 5 percent per year but actually declined this year by .2 percent.

“We’re at the front of some tough times,” said Verjeana Jacobs, board chairwoman. “We’re seeing the executive fund our budget, but if we go backward, the impacts will be something we can’t recover.”

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