The Shadow
The Covington School Board unveiled their 2010-2011 operating budget to members of Covington City Council during a joint work session Tuesday night.
The $10,300,300 budget, recently adopted by the school board, reflects a $1 million cut from the current budget of $11,333,976.
Covington School Superintendent Tom Long said the “bare bones” budget does not include layoffs, furloughs, cuts in salary or benefits and provides full funding of the Virginia retirement System (VRS) for the system’s employees. Furthermore, a step increase for 109 eligible professional and classified employees is also preserved. The step increase will cost $71,000.
“K through 12 will be hit particularly hard over the next couple of years,” Long said to council.
Of the state funding for education, Long added, “It’s not good news for funding of public education throughout the state of Virginia.”
Salary and benefits make up approximately 80 percent of the school division’s budget.
The school board is requesting level funding from the city next fiscal year. In the current budget, the city contributed $4,278,613 for public education.
“We’re not asking the city of Covington to bail us out. The million dollars we lost are taken care of,” Long said to council.
In addition to being pared down $1 million, the budget reflects a decrease of state funding of $914,754, or 16.3 percent; a decrease in federal funding of $154,402, or 15.3 percent; and is based on Average Daily Membership (ADM) of 822 students.
The ADM is calculated each March. Covington’s ADM for the year is 837 students but Long said he chose to be conservative in calculating the budget based on a smaller ADM. The ADM determines state and federal funding for the school system since funding formulas are contingent on the total number of students in the school system.
The ADM does not account for students in early childhood special education or children attending the pre-kindergarten program.
Long said the elimination of positions through attrition has realized a budget savings of $435,000.
Positions eliminated include director of administrative services, two Covington High School teaching positions, a grant coordinator position, two custodial positions, and an instructional technology specialist among others.
Long also advised council that a series of line-item reductions in the budget will save an additional $301,794.
The budget includes $100,000 toward payment of the debt service on the new schools. “I am hopeful the city will cover the other $200,000,” Long stated.
“This is a bare bones budget. The cuts are pretty deep,” Long noted.
“Out students definitively deserve the best that we can give to them and we will not settle for average,” Long said to council.
Long noted that the salary and benefit package for city teachers is among the best in the state. “That’s why we are able to attract quality people and keep quality people,” he added.
“We think it’s a realistic budget. We think we do not have any fat in this budget,” he added.
Despite the lean economic times, city council was obviously pleased with the budget outlook.
“I’ve been on council for 16 years and that’s the best presentation I’ve ever heard,” Councilman Bill Zimmerman said.
While the school board and council were in a joint meeting, Covington Vice Mayor Rob Bennett asked if the school system had any funding set aside to compensate city residents who complained about excessive dust on their property as result of the school construction.
No money has been set aside. However, Bennett asked if the school board can draft a letter to the affected citizens regarding the dust issue.
In other presentations, Teresa Hammond, executive director of the Alleghany Highlands Chamber of Commerce, gave a presentation regarding tourism in the Alleghany Highlands.
She noted that travel industry jobs have increased 43 percent over the last decade and tourism is the country’s second largest employer. Tourism is Virginia’s number two industry.
Hammond said tourism brings money into the community and creates jobs and helps sustain current jobs.
She said that nature-based, “Eco-tourism” destinations are the hottest commodities in tourism. “The most coveted tourism destination features are already in our area,” Hammond said.
The Alleghany Highlands can offer hiking, biking, canoeing, horseback riding, hunting and fishing as well as camping.
The Alleghany Highlands is located near two of the most visited natural attractions in the United States – the Appalachian Trail and the Blue Ridge Parkway. Also, approximately 50 percent of the Alleghany Highlands is composed of National Forest.
Hammond said the area is rich in history including such attractions as the C&O Heritage Center, the Covington depot and Humpback Bridge.
The Highlands is located near Interstates 64, 81 and 77 and is within one day’s drive from 50 percent of the country’s population.
She said the chamber would like to pursue spreading the word about the Highlands to a larger audience.
Through use of a more user-friendly Web site, information kiosks located at various sites in the area and advertising, Hammond hopes to increase visitors in the area.
There are 12 golf courses in the area within a 30 minute drive as well as The Homestead and The Greenbrier resorts.
Hammond said the area is also participating in a marketing initiative to draw fishermen to the Highlands.
She said the chamber will have a booth at the Greenbrier Classic PGA tournament this summer. The cost of the booth will be $6,000. Council placed a proposal on next weeks agenda to fund $500 of the cost of the booth.
Hammond requested the city allocate $5,000 toward the $150,000 budget needed to market tourism in the area.
In other items, council:
Received a report from Deanna Cox of Robinson, Farmer, Cox and Associates regarding the city’s audit. No acute deficiencies were found and the city is currently maintaining an adequate general fund balance.
The balance is to be utilized for lean budget years and she said if the city utilizes some of the funds on a short-term basis to make up for lost revenues, its use is acceptable.
Items on the April 13 agenda include:
– an audit committee resolution;
– the Virginia Juvenile Community Crime Control Act. The Diversion Program will no longer be based in Covington at the end of June. The services will be based in Rockbridge County. Zimmerman, who heads the local program, will retire when the program ends June 30;
– an animal impoundment services agreement;
– a request to place the old Edgemont School mobile classrooms out to bid;
– renewal of taxi permits for Lloyd Lewis Taxi and Precious Cargo;
– an appropriations ordinance regarding the school capital reserve debt fund of $676,127;
– consideration of a change in zoning to allow an automobile rental business to operate at 805 S. Lexington Avenue.
