Danville school deficits grows

On Friday morning — a day where teachers across the commonwealth were wearing black to mourn the “lack of commitment” to public education — the budget woes for Danville Public Schools got worse.

Kathy Osborne, the assistant superintendent for business, told school board members the budget cuts have increased from $5.2 million to $5.6 million since health insurance premiums have increased by $600,000.

Part of this hike is offset by additional funding in the House of Delegates version of the state budget being released Sunday, which provides an extra $140 million for education.

The insurances increases — up 14 percent — are set to be passed on to employees in the city school’s first draft of the budget, resulting in premium increases. But Osborne said as the budget process moves along, they will try to avoid adding extra employee costs.

In the first draft of the budget — which will be presented at the school board meeting March 1 for a public hearing — the $5.6 million in revenue reduction comes from:

» Closing W. Townes Lea Elementary school to save $1.3 million;

» Closing a second school or receiving an additional $2.1 million from city council;

» Reduction to facilities and technology and other line items to save $563,000;

» Insurance premium increases of $600,000 passed to employees;

» Use of $500,000 lottery reserve; and

» Use of $500,000 Anthem insurance self-insured reserve.

Closing a second school would result in more savings because they would not need to retain any of the staff, according to Osborne. But school officials are optimistic about working with the city council.

“They indicated to us that they were amenable to having a request from us that was above and beyond what we currently seek,” said Osborne. She was quick to add they did not offer or promise anything to the school system, but the conversations were positive.

Funding from the Virginia Lottery is also given to the schools, but Osborne said it is usually set aside for renovation projects in the schools since no money is given directly to that area. Lottery money used to go directly to construction projects, but the budget cuts have made it necessary to use the lottery funding elsewhere.

In the past four years, 81 positions were eliminated through various means of attrition, collaboration and layoffs and the Danville Public Schools have been cut $12 million — 20 percent of its total budget.

A large part of the budget cuts this year stem from an increase in contributions to the Virginia Retirement System. The schools must put an addition $2.2 million into VRS next year. However, local legislators have requested schools spread the payments over several years.

Delegate Danny Marshall, R-Danville, said he asked appropriations to give the schools five years to pay into VRS.

The schools must draft a budget with the governor’s current proposal. But it may change as it goes through the General Assembly. Osborne said the first budget is typically “draconian” compared to the final draft.