School district loses some state funds but has enough in reserve to make up for it

The Cherokee County School District will lose $1.2 million in revenue following a state budget cut last week.

The state Budget and Control Board ordered a 3 percent budget cut of state agencies due to concerns that tax revenues will not meet projections. While the school district has not received official word, finance director Ben Childs estimates a 3 percent budget cut would cost the district $1.2 million in state funds.

But Childs said the district will not have to make any major budget cuts.

A preliminary audit report shows the district could finish its most recent budget with more than $500,000 in revenue. Childs said the district also carried over $700,000 in state Education Improvement Act (EIA) funds that can be used to offset the state budget cut.

EIA is state education money supported by a 1-cent sales tax enacted under Gov. Dick Riley with the approval of the Education Improvement Act. This is a major source of funding for many education programs operated by school districts.

"We thought there was a possibility we could see a midyear budget cut from the state so we planned this year's budget with that in mind," Childs said. "We wanted to make sure we were in a position where a budget cut would not have a major impact."

About 90 percent of a school district's budget goes towards salaries and personnel.

The district kept new hiring to a minimum and developed a "zero based" budget in an effort to make sure all expenses were justified, Cherokee County School Superintendent Dr. Bill James said. This resulted in the district only hiring 20 new teachers this year.

"We will continue to be as frugal as possible," James said.