School board members got their first public look at Hamilton County Schools' 2011 budget and its $8.6 million projected deficit on Thursday, less than one month before they must vote on the final document.
The $310 million proposed general purpose budget, presented by Chief Financial Officer Tommy Kranz, includes eliminating a total of 41 school-based positions for a savings of $2.7 million.
Because Hamilton County usually has several hundred people retire every year, Mr. Kranz said it would be unlikely that any teacher whose position was eliminated would actually lose their job.
In the proposed budget, the system would save an additional $750,000 from cuts to the central office, but Mr. Kranz did not specify the number of eliminated positions.
The board's one-month turnaround to approve the budget is different from last year, when board members invited a citizens advisory committee to publicly brainstorm ways to trim the budget starting shortly after a November school board retreat.
Mr. Kranz said Thursday that budget work has been more behind the scenes this year, since he has met with each board member individually and with each school that may face cuts.
"I assure you, we've been working on the budget," he said.
Finance Committee Chairwoman Linda Mosley denied that she and Mr. Kranz changed the process because they thought the community was overly involved in last year's budget process.
"There's just been real challenges finding out where we're going to get our money," she said. "I just got my budget book tonight."
During his presentation Thursday night, Mr. Kranz said further cuts to the central office would be particularly difficult this year as the system begins to administer federal Race to the Top funds.
Based on a projection that the district's exceptional education program will not grow in enrollment, Mr. Kranz is proposing to freeze its budget, saving $640,000.
The school district also hopes to save $1.2 million in unfilled positions, and $250,000 from the consolidation of East Ridge and McBrien elementary schools.
Although school officials have discussed a plan to close or consolidate schools all over the district in coming years, there are no plans to do so next year. The combined East Ridge Elementary is the only facility change planned.
Also absent from the proposed budget is any change to employee health care. Officials from the school system and the Hamilton County Education Association have been battling it out for more than a year over changes to health insurance plans and premiums, but have not yet reached a compromise.
Health insurance premiums are a budget challenge in school districts across the state. In Williamson County, officials are seeking a property tax increase to cover higher premiums, and health insurance costs are adding $5 million to the Metro Nashville system's budget.
Balancing Hamilton County's budget also requires dipping into the system's fund balance for $3 million, which Mr. Kranz said is not ideal.
"It's doable this year, but as we grow it, it becomes more and more difficult for us to manage our cash position," he said.
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