Beech Tree News Network

As members of the General Assembly are considering a budget proposal submitted by Governor Matt Bevin (House Bill 200), school leaders are trying to gauge the fiscal impact it may have on Butler County Schools. 

Although the budget proposal does not cut basic SEEK funding (a per pupil allocation of $3,981 from the state to each school district), there are proposed significant cuts to other areas of education and some costs would shift to local districts.  These are the areas of most concern to local school leaders.

Governor Bevin has defended his budget proposal as being necessary and that difficult choices are required to effectively deal with Kentucky's public pension liability, which the governor estimates at $60 billion. The governor has suggested that spending cuts proposed in his budget could be avoided if the General Assembly can pass pension reform legislation in the current session - an issue that lawmakers are addressing.  Until that happens, educators are preparing for the worst. 

According to a financial analysis conducted by local school leaders, the budget proposal would have a significant detrimental monetary impact on education in the following ways: 

--Reduction of transportation funding by more than $250 million; the proposed cut will fund only 25 percent of the district’s state mandated transportation (buses) costs. This would be down from 51 percent from the current year. This cut would lead to added costs of approximately $500,ooo for Butler County Schools.

--Shifting more than $88 million in state costs for school employee health insurance to local districts

--Elimination of nearly $24 million in state funding for professional development

--Restrictions placed upon local school boards in setting district budgets and imposing requirements on boards to reallocate funds within their budgets.

--Classified retirement district costs would increase from 19 percent to 28 percent.

--No funding for teacher and principal internship program.

--FRYSC is funded through Cabinet for Health and Family Services and Department of Education - both receiving the highest cut to the budget.

-- Retired teachers also took a hit with funding for health insurance for retirees being cut by more than $100 million.

Based on the analysis, Butler County Schools would see these specific cuts to local school operations based on 2017-18 numbers:    

--Textbook Funds, $53,824 less money

--Professional Development, $29,530 less money

--Community Education, -$20,000 less money

--An added classified retirement cost to the district of $240,000

--An added cost to transportation to the district of $500,000

--An added unknown cost to district for covering a portion of employee health insurance.

--Flex focus money also set to be cut from district safe schools funding that is used to pay for items such as school resource officers. 

School districts, according to the proposed budget, are being asked to begin using their budget reserves, which are required by law, to address the reductions in funding. 

"The budget provides significant dollars to address the unfunded liability for the Teacher Retirement System, however, it is clear that this is being done at the expense of current education programs and services," said local school officials. 

Additionally, the Kentucky Department of Education will be required to cut $20.5 million from its budget. This is the second highest total among all state agencies behind the Cabinet for Health and Family Services.