BAY MINETTE — The Baldwin County Board of Education unanimously approved the superintendent’s cost-containment package Jan.29, and subsequently, unanimously approved the loss of 300 jobs.

In May, 140-150 classified employees — teacher’s aides, bus drivers and secretaries — and 160-180 certified employees — teachers — will be cut from the school budget.

“The reductions are going to be equal percentage-wise between the schools and the central office,” Terry Wilhite, BOE spokesman said.

Wilhite said the staff reductions were neccesary to meet the $24.3 million funding shortfall projected for next year.

The package, which was approved without discussion during the Jan. 29 BOE meeting, includes the reduction of substitute teacher costs by revising the personal leave policy, freezes in locally funded salaries, delays on construction policies, the possible sale of BOE properties, containing operation costs and the possible combination of facilities.

Wilhite said the possibility of combining schools is still just a possibility at this point, but it could be looked at soon.

As for enacting the cost-containment package, the BOE began acting within the package’s confines immediately when they failed to reapprove the contracted services of two retired educators.

“It is a luxury we cannot afford,” Frank Trione, District 1 BOE member, said of each contract. “I have a real problem approving them if I have to look a teacher in the face and say ‘you don’t have a job.’”

Angie Swiger, District 5 BOE member, reinforced his comments by saying while the contracted employee’s services were worthwhile, cuts had to begin somewhere.

While the job cuts will go into effect in May, part of Hollinger’s proposal is using $5 million in state bonds to meet payroll.

“The state Department of Education is allowing school districts to use state bond money to pay debt on buildings, which frees up the dollars originally intended for that purpose to instead pay employees,” Wilhite said.

Wilhite said the downside of using that money for pay is the schools will have $5 million less to spend on facility construction.

“The financial picture continues to unravel almost daily, that is, the news gets worse,” Wilhite said. “These are cuts of catastrophic proportions. It is uncharted waters.”

Wilhite said the cost-containment reductions and state flexibilities should allow the schools to “limp” to the end of the year without staff reductions.

But, school officials are still working through the process of amending more than $10 million from the operating budget for the current year after the state extended the deadline from Jan. 31 to the end of February.

“(The extension) is helpful to us because the process is so complicated,” finance officer Jean McCutchen said. 

McCutchen updated school officials at a Jan. 26 BOE worksession.

“Frankly, there is no way to increase our revenue, because we are not a revenue producing body,” McCutchen said. “The things we can do against proration are very limited.”

McCutchen said while BOE policy mandates she keep a one-month operating budget as the general fund balance, it was an unrealistic balance for the month of December due to cash flow issues.

“After the governor’s declaration of proration Dec. 15, our December check was cut by $1 million per month to make up for proration,” McCutchen said. 

Proration combined with state-wide education funding cutbacks totals a $23 million decrease in funds for Baldwin County schools, according to McCutchen’s records.

Lagging sales tax revenues and delays in ad valorem property tax does not help the situation.

“Sales tax is lower in every month compared to last year,” McCutchen said. “And, I am sure you know there are more than 14,000 property tax appeals.”

Property owners who filled appeals are not required to pay taxes until their case is heard by the Baldwin County Board of Equalization.

McCutchen said she is considering all state approved flexibilities to relieve pressure from the general fund while meeting salaries and other expenses.