Ellis Goodwin
To address continuing budget constraints Gov. Brad Henry announced sweeping cuts to state agencies this week.
While the cuts are supposed to be a band-aid for the injured economy, it is only deepening the wound for education. State education officials say Oklahoma's schools have suffered $43 million in funding cuts during this fiscal year, and some are in danger of closing down or being merged into a neighboring district.
Schools across the state are struggling to make payroll while providing quality education. Chickasha schools Superintendent Jim Glaze said 80 percent or more of his district's budget is tied up in personnel. He said the district has released all unnecessary positions, and if it cut any more, it would have a negative impact on student's day-to-day education.
Glaze said they are trying everything to avoid further cutbacks, but as mid-term adjustments are prepared, he and other area superintendents are worried.
"A lot of people are saying next year will be the worst for public education," AmPo Supt. Chad Hance said. "We are entrusted with the communities most sacred possession ... and when we don't have the funds to do what we need to do, it's just gut wrenching."
Hance said he expects further cuts to his district's budget during the christmas break.
A school system's budget is determined by multiple factors including gross production tax, ad valorem tax, gambling taxes and even taxes on cigarettes – all of which are producing less revenue during this recession.
Hance said that local ad valorem or property tax has gone up slightly, which will decrease next years amount of state funds for Am-Po. He said the increase in tax revenue is not enough to outweigh the increase in student costs in the district.
Ninnekah Supt. Todd Bunch finds himself in a similar situation. He said on Oct. 1, he sent a student count to the state. Ninnekah had 50 more students on Oct. 1 than it did at the end of last school year. Normally, that would mean Ninnekah would receive some $4,000 to $5,000 in additional state aid for each of those 50 students.
Bunch isn't sure he'll ever see that money.
"There is only so much pie to go around," he said. "When the whole pie is smaller than anticipated, it can create problems. We've educated 50 additional students. We've had to drive more miles to get them to school and get them home. We've had to hire an aid and more help in the cafeteria."
These losses in state aid don't figure in drops in revenue from gross production. Gross production, or revenue generated from oil and gas production, is down by one-third. Sales tax is down and the lottery hasn't produced as much money as expected.
"These charitables should come back in state aid," Bunch said.
But, those funds will not reappear for at least a year.
The state of Oklahoma collects this money and sets a yearly budget. Funds are spread based on a formula that considers the school's size and needs. The fixed amount keeps tax rates steady, but leaves many schools guessing what their budget will be in the future.
"The schools get yo-yoed when this happens, and it can really cause some problems for them," said Daryl Johnston, who is CPA for eight local schools.
Johnston has worked with schools since 1984. He said there have been booms and busts throughout history, and Oklahoma legislation has the mechanisms to handle down economies. Johnston entered the accounting industry during the last oil crisis, and this is the first time he has seen state aid cuts made so early in the fiscal year.
"It's not unprecedented, but it's the worst it's ever been," he said.
