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Blount County school board members approved Monday a balanced budget of $76.58 million for fiscal 2009-10, which includes nearly $2.3 million in fund balance and stimulus money.

The fiscal '09-'10 budget includes $1,608,000 in fund balance. Officials have now used all fund balance in excess of the mandated 3 percent, said Troy Logan, fiscal administrator for Blount County Schools. The system has $1,998,000 in fund balance after encumbrances are removed from fund balance, which is actually beneath the projected 3 percent cap of $2.3 million, Logan said.

Officials said they have done everything possible to minimize impact to the system's personnel and programming. "We are a people-driven organization. Therefore, we made people our top priority," said Blount County Director of Schools Rob Britt.

"With that theme in mind, we have attempted in good faith to spare the classrooms or direct services to students as much as possible. However, all these cuts in some way affect the overall classroom experience," Britt said. "We are not pleased with any of these cuts and wish there were other alternatives such as additional revenue. Absent additional revenues, however, these cuts are necessary to balance the budget."

Since officials have used one-time revenues to fund recurring operating expenses, Logan said the school system will need more than $3 million in new revenues next year to merely maintain the system at this year's level. "This is worse than anything we've ever faced," said board Vice Chairman Don McNelly.

"We've only patched the boat this year. We'll need more money next year to float it," said board member John Davis. Without additional revenues, he said officials will have to make significant cuts next year.

State officials have already informed Logan the system will have at least a $770,000 increase next year in their Tennessee Consolidated Retirement System (TCRS) expenditures, he said.

Budget process

School officials had originally projected $75,248,000 in revenues for fiscal '09-'10. Prior to the board's first approved budget request, administrators decided not to fund:

$1,070,000 worth of textbooks that account for two years of adoption;

A regular full-time teaching assistant estimated at $25,000;

Seven part-time teaching assistants estimated at $54,900;

$112,000 worth of library books;

A personnel secretary for the central office estimated at $45,800;

Five full-time custodians estimated at $166,000;

Two part-time custodians estimated at $22,500.

After making minor increases in several revenue categories, officials amended their revenue budget request to $76,572,000. About 35.8 percent -- or $27,459,000 -- of these funds are generated by local taxes and 60 percent -- or $46,319,100 -- by the state.

During a June 29 work session, officials presented school board members with another $1,262,000 in proposed cuts. The school system still faced a $1,066,000 budget shortfall.

Since last week's work session, school officials have added back:

$35,000 for fee waivers;

$3,500 for the high school swim teams to rent Maryville College's pool;

$3,000 for high school curriculum guides;

$10,000 for textbook replacements and consumables.

Officials presented board members Monday with appropriation cuts totaling $1,132,380. School board members approved the budget.

Board Chairman Chris Cantrell then made a motion to amend the general purpose school fund (GPSF) by $720,000 and add back: 1 full-time literacy leader; 5 full-time class size reduction teachers for general education; 4 part-time high school graduation coaches; and 28 part-time general education teaching assistants.

All 38 positions are Elementary and Secondary Education Act (ESEA) activities, which are being funded for one year by the Individuals With Disabilities Education Act (IDEA) Part B stimulus money under an election of its permissive use of funds. Other funds will have to be identified next year to continue employment of these positions when the expenditures return to the system's GPSF, Cantrell said.

Cantrell's motion also added back $21,000 worth of vocational instructional supplies and $6,900 worth of instructional supplies for systemwide art, music and physical education teachers by reducing next year's telecommunications line item by $27,900. Logan said the school system will be receiving discounts from its phone provider next year.

Failed motion

Board member Brad Long later made a motion to lower the GPSF by $488,094.58 to fund five full-time custodian positions, two part-time custodian positions and four teacher positions lost through attrition.

In order to show how he was coming up with the figure, Long presented his fellow board members with a list of 12 positions that he thought Britt could eliminate. These positions included:

An assistant principal for both Eagleton Elementary and Middle Schools;

A Star Student administrator;

A personnel/vocational secretary;

A transportation secretary;

A computer technician;

A federal projects employee;

A special education employee;

A guidance employee;

An athletic transportation coordinator;

A Homebound employee;

A psychologist.

Board members were wary about the motion. "I don't think it's within our power to eliminate specific positions," said board member Rob Webb.

"Britt is in charge of personnel, and only he can make the decision whether to cut positions," Cantrell said.

"We can't cut people. To a certain degree, we can create or eliminate positions," Davis said.

Board member Mike Treadway later asked for clarification about the purpose of Long's motion and questioned whether it was intended to eliminate actual positions, which are currently filled, to fund new jobs. "We've worked real hard to save jobs. I don't see how we can cut positions out of this budget to fill unfunded positions."

Long said he only wanted to eliminate expenditures to fund needed positions, and it was not his intention to tell Britt what positions to cut. "In order for you to understand where I'm getting it, you have to break it down to specific positions."

Long's motion died for lack of a second.

Sub teachers cut

School officials spent $405,000 on substitute teachers and $290,000 on non-certified substitute teachers for fiscal 2008-09, Logan said. Officials have reduced substitute teacher spending by $95,000 for fiscal 2009-10, he said.

Webb later made a motion to cut substitute teacher pay by $166,000 to fund five full-time custodian positions. Board members approved the motion.

Certified substitute teacher spending was reduced to $300,000 and non-certified substitute teacher spending was reduced to $134,000.