The Cherokee County School District faces difficult choices this year while dealing with a projected $6 million budget shortfall.

A state House of Representatives proposal would cut state funding for all school districts another 6 percent July 1.

Cherokee County School District Finance Director Ben Childs said the proposed state budget would return the district’s revenue to 1995 levels.

School board policy requires the district to produce a “zero based” spending plan this year in which all expenses must be justified. About 85 percent of the district’s budget goes towards salaries and fringe benefits for school employees.

No tax increase is planned in the school budget for the 2010-2011 school year, Childs said. A 2006 state law limits school districts’ ability to raise property taxes to get additional revenue.

“We are facing a $6 million shortfall going into the new budget as it stands,” Childs said. “We have a lot of work to do.”

State Superintendent of Education Jim Rex has urged lawmakers to increase the state’s cigarette tax from 7 cents to the national average of $1.34 and devote half of those revenues to public schools until budget cuts can be restored. He has suggested some $1.5 billion in state tax exemptions could be a possible source of additional revenue.

School districts are preparing for the end of federal school stimulus money in 2011 while tracking several legislative proposals which could impact school budgets.

The state House spending plan only has enough money to operate school buses for 122 days. It does not address how to pay for school buses for the remaining 58 days left in the next school year.

State lawmakers have discussed cutting adult education program funding, eliminating a $7,500 national board teacher stipend and ending the popular TERI retirement program for all state workers.

Acting superintendent Kim Bagwell said the district’s financial situation is being considered in making recommendations on the placement of staff in county schools for the 2010-2011 school year.

Bagwell said she wants to make sure her personnel recommendations have a minimal impact on the school district’s operations. Those recommendations

will be presented to the school board’s personnel committee in the coming weeks.

The state has extended the deadline for issuing teacher and school administrator contracts until May 1.

“There are some issues still out there that need to be addressed before we can make recommendations,” Bagwell said.

NOW WHAT?

 The state House spending plan only has enough money to operate school buses for 122 days. It does not address how to pay for school buses for the remaining 58 days left in the next school year.

 State lawmakers have discussed cutting adult education program funding, eliminating a $7,500 national board teacher stipend and ending the popular TERI retirement program for all state workers.

 Acting superintendent Kim Bagwell said the district's financial situation is being considered in making recommendations on the placement of staff in county schools for the 2010-2011 school year.