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By Marc, April 28, 2010 9:32 pm

At a recent meeting of the Stafford County Board of Supervisors, Chairman Mark Dudenhefer (R-Garrisonville) made a stunning statement. He suggested that Republicans could look to make further cuts in the adopted FY’11 by withholding a percentage of county funds (a.k.a. holdback funds).

With the 7 percent holdback, they will have an opportunity to actually affect that budget by impacting that holdback of funds.

He made this statement in reference to Supervisor Susan Stimpson’s (R-Falmouth) statement that she was going to vote against the budget, since she wanted even deeper cuts. He suggested that this was still possible, even after passage, by not appropriating a portion of the holdback funds.

This is in sharp contrast to prior board precedent with regards to the purpose of holdback funds. The intent of holding back a percentage of funds appropriated to the county government and schools has been to avoid the situation where expected revenue is revised downward at the mid-year and it no longer supports the same level of budget expenditures. To me, it certainly makes good fiscal sense to hold back a certain percentage of funds, pending a mid-year review, although I would have required more justification on why 7 percent; however, I am deeply opposed to using this holdback as a way to affect adopted budgets outside of the normal budget process. This smells of politics at its worse.

This also presents significant problems for county government and the school system. They are essentially operating, based on their adopted budgets. If funds are cut surreptitiously, this will create a huge budget nightmare. If Stafford Republicans wanted to address specific budget items, they should have done it within the constraints of the normal budget process. Dude, say it isn’t so?!

If all of that wasn’t bad enough, Stafford Republicans, in approving the FY’11 budget, also voted to withhold the reappropriation of educational federal stimulus funds – pending accounting reports verifying the exact amount of unspent funds in FY’10. The fact is that Stafford Republicans were already provided this information by the school system. You see the information they were already provided doesn’t fit within their preconceived notions. They want to claim that this money was local money and not federal stimulus money, so that they can further cut the school budget by arguing that if they didn’t spend this money last year than they don’t need it this year.

As I previously mentioned, the school system froze expending federal stimulus funds in FY’10, during the FY’11 budget formulation process, to protect against a looming budget cliff that they identified due to significant declines in state and local revenues. The local decline in revenues were not only because of the struggling economy, but was actually exacerbated by Stafford Republicans fiscal irresponsibility.

By withholding these federal stimulus dollars from the school system, Stafford Republicans are potentially jeopardizing continuing a recent step increase given to teachers and other school employees into the next school year. Why you ask? The federal stimulus dollars were included as part of the instructional budget for next year. This instructional budget includes the large majority of employee salaries. If Stafford Republicans were not to reappropriate the $11 million or so of federal stimulus, not only would this raise be in jeopardy, but also significant teacher layoffs would be necessary.

It’s past time that Stafford Republicans stop playing political games with our teachers and children as their pawns! Enough is enough already.

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By Marc, April 23, 2010 10:29 pm

The Republican majority on the Stafford County Board of Supervisors sent a clear message on Tuesday evening to county residents and potential new businesses, “They do not value education and would prefer to play politics with our children’s future.”

They voted to underfund Stafford Schools to the tune of $5.6 million, providing a total of $100,693.774 in local money. The original request by the School Board was $106,371,217. This is approximately a 5.5 percent decrease from what was requested; and, it is approximately 3 percent less than the amount of county funds transferred to the schools in FY’10.

When adding in other revenue (state and federal), the Board of Supervisors adopted a total school operating budget for FY’11 of $237,261,940.  This is also a nearly 5 percent decrease in the total operating school budget compared to FY’10. The total budgeted amount in FY’10 was $248,480,087.

I know, I know, Republicans will tell you that the school system only estimates that they will spend $233,434,297 for FY’10, so they will claim to have provided a overall year-over-year increase for FY’11. This couldn’t be further from the truth.

Here’s the truth. In formulating the FY’11 budget, the school system projected a severe decline in total expected revenues. This was partly due to FY’10 non-recurring revenue sources (e.g. carryover funds from FY’09 being expended) and declining state and local revenues. The reasons for declining state revenues were mostly due to economic conditions; however, it was Gov. Bob McDonnell (R-VA) and Speaker Bill Howell (R-28^th) who chose to cover the majority of the state budget shortfall by slashing education spending.

Local revenue was declining too, but it wasn’t only because of economic conditions. You see, Stafford Republicans decided to exacerbate the county’s budget shortfall by repealing the business tax. This is the same tax that was estimated to generate $3.7 million in FY’10 and projected to generate $120 million over the next 20 years. In order to pay to repeal this tax, they used a portion of a school surplus that was discovered last year – due to a county accounting error. Add in the lost revenue from this tax in FY’11 and you’re staring down a self-inflicted $11.1 million problem created by Stafford Republicans. These funds could have been used to fully fund our schools.

Stafford Schools were dealing with a projected $25 million plus revenue shortfall for FY’11, due to these fiscal realities, so they took aggressive measures to avoid a potentially catastrophic budget situation. These measures included freezing expenditures of FY’10 federal stimulus funds, closely monitoring discretionary spending and instituting a hiring freeze. That is the reason why FY’10 spending is less than what was actually budgeted. This doesn’t mean that the school system doesn’t need these additional funds. They just needed them more in FY’11 to avoid a looming budget cliff, which would have resulted in significant teacher layoffs.

You see the school system did the responsible thing. This is more than what I can say for the county whose expenditures have regularly exceeded revenues in recent years. Due to this fiscal irresponsibility, the school system has had to bail out the county on numerous occasions. These bailouts have come at the expense of our teachers and children.

Also, can anyone remember the last time the county had a “clean” audit? In recent years, they have been repeatedly cited for significant deficiencies in their internal controls that resulted in reconciliations between the Treasurer’s Office and Finance Department not being performed in a timely and consistent manner throughout the year; and, just last year, they were cited for a material weakness in their internal controls that resulted in the discovery of a school surplus.

Here’s how their auditor defines the various deficiencies:

A control deficiency in an entity’s internal control over compliance exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to administer a federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a federal program that is more than inconsequential will not be prevented or detected by the entity’s internal control.

A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or detected by the entity’s internal control.

If this doesn’t provide a moment of pause for folks, the fact that the Republican majority on the Board of Supervisors decided to take some financial authority away from the School Board by categorically funding the school operating budget this year should. I would think that they would focus on getting their house in order versus micro-managing the School Board.

This same majority on the board claims that by categorically funding the schools that the School Board will be forced to provide step increases for teachers, while denying administrators any raises. This shows how little they understand the school budget and budgets in general. The administrative category doesn’t ONLY contain administrators, but also critical “instructional” support personnel. It contains school nurses, occupational therapists, physical therapists, psychologists, speech therapists, social workers, and many other critical positions.

Let’s also not forget the other line items in the budget. Without bus drivers to get our children to school, how many of us would have to significantly adjust our work schedules to drop our children off? What about custodians who help maintain a clean environment or school security guards who help provide a safe environment for our children to be able to learn? What about technology teachers or computer technicians?

Clearly all of these employees play a critical role in educating our children. The fact is that the Republican majority on the board has neither “fully funded” the instruction line in the budget or any other lines for that matter. This is how they define working with the School Board. At least Supervisor Cord Sterling (R-Rock Hill) was being honest when he called for folks to fire the School Board. You see the Republican majority has no interest in working with the School Board; they simply want to get rid of them.

It’s also easy for them to say that teachers should get a step increase, but any step increase has a recurring annual cost. Part of the money for a step increase approved late last year by the School Board is currently being held in abeyance. Is the Board of Supervisors willing to provide the $3.8 million necessary to fund this step increase annually? I think not. It’s just more lip service for politicians more interested in the next election versus educating our children and providing fair compensation to our educators.

For Republicans, it’s easier to point fingers at the School Board then at themselves. The 12^th richest county in the nation should at least be able to provide fair pay to teachers. Currently, teachers in Stafford County make 10 percent below the national average.

I’d also like to remind folks that even if Republicans provided the same amount of funding to our schools as they did last year, this would still be an overall decrease in funding year-over-year. There are many fixed costs that rise annually, which must be funded. Just this year, health care premiums have risen for employees by 8.2 percent. The school system’s share of this increase equates to $1,807,039. What about mandatory increases for the Virginia Retirement System and retiree health insurance to the tune of $2,600,000.

It’s also not like operational and maintenance costs are decreasing. School buses are a good example. As part of Gov. McDonnell’s school budget cuts, he chose to extend the life of school buses from 12 to 15 years. The cost to maintain these buses past 12 years will be significant.

So simply providing the same amount of funding to the school system year-over-year would actually constitute a funding decrease. As I mentioned above, the Republican majority actually provided 3 percent less local funds than they provided last year.

Our schools are simply not a priority for this Republican majority. You need look no further then Stafford’s new 10-point Economic Development Plan where there is no mention of education.

In fairness, this hasn’t been a priority of any board for many years. Over the years, the Board of Supervisors have whittled away their local contribution to our schools. In the 10 years preceding 2006, based on past county budgets, 69 percent of county expenditures went towards our schools. In the recently approved budget, we are now down to around 54 percent.

Based on the latest data from the Virginia Department of Education, Stafford County now ranks 117 out of 132 districts in per pupil spending.  The local per pupil spending in Stafford County was $4,050. This is 36 percent below the state average of $5,504. Based on the amount of local funds provided to the school system this year, local per pupil spending will equate to $3,766.08. This is 46 percent below the aforementioned state average.

For those of you thinking that we are spending too much locally on education, I’ve got some news for you. Based on the projected number of students in FY’10-11 (26,737) and the number of required instructional days each academic year (180), Stafford County is ONLY paying $21 per day (or $3 per hour – based on current 7hr High School day) to educate our children. This hardly seems like a huge local burden.

Let’s put what Stafford County pays into better context. Last year, Stafford contributed $5,246,158 to the Rappahannock Regional Jail. They essentially share the costs to run the jail with the state, Fredericksburg, Spotsylvania and King George, based on the percentage of inmates they have currently in the jail. On average, the daily inmate count is somewhere around 950. Based on what we pay, let’s say for arguments sake that one-quarter of the inmates are from Stafford. That means we are paying approximately $60 per day to house our inmates. So are housing our inmates more important than educating our children? I say we ask Stafford County Supervisor Paul Milde (R-Aquia).  After all, he is on the Rappahannock Regional Jail Authority and is a former inmate himself (sorry, I couldn’t resist).

This sustained underfunding of our schools is having an effect and will have a bigger effect in the years to come. Currently, 53 percent of our schools have failed to meet Annual Yearly Progress; we now have the third highest K-7 pupil/teacher ratio in the state; and 80 percent of our Standards of Learning scores are at or below our neighbors or the state average, according to the Chairman of the School Board’s Finance and Budget Advisory Committee. If you seriously think that things are going to get better, based on these very troubling educational measures, you’ve got another thing coming.

The problem is that the funding problems will be even worse next year; and, the funding cliff that was avoided in FY’11 will be even higher in FY’12. The Board of Supervisors will not be able to rely on federal stimulus funds to supplant what should be a greater contribution to our schools by the county. This is because these funds will expire in FY’11.

What’s worse is that the Republican majority on the Board of Supervisors strongly believes that our schools are overfunded, not underfunded. If Supervisors Paul Milde (R-Aquia) and Susan Stimpson (R-Falmouth) had their way, they would have even slashed more from the school budget this year.

Stafford Republicans need to get their priorities straight and fully fund our schools. They constantly talk about bringing businesses to Stafford. I can assure you that businesses are taking notice of the complete lack of support the county is providing to its schools, when making decisions on whether to relocate.

Also ask yourself, what is the first thing someone asks a real estate agent when deciding on whether to relocate to a specific area? They want to know how strong the school system is there.

It’s time for Stafford Republicans to make education a priority again!

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By Marc, March 8, 2010 7:20 pm

Last week Forbes released a list of the top 25 richest counties in the nation. Stafford County was ranked as the 12^th richest county in the nation, with the median household income at $89,536.00 and the percentage of residents 25 or older with Bachelor’s Degree or Higher at 36%.

An extremely good measure of how much a county actually invests in education is how much they spend per student (per pupil). What you will find is startling. How can the 12^th richest county in the entire nation rank near the bottom of Virginia and the nation in per pupil spending? To put that in further context, Virginia is ranked only 37^th in the nation in per pupil spending. So, we rank at the bottom of a state that ranks only 37^th in the nation in per pupil spending. This would be almost laughable, if it wasn’t so sad.

According to the latest available data from the National Center for Education and Statistics (NCES, 2006-2007), Stafford County spends $8,900 per pupil. That ranks them 86^th (out of the 132 districts that NCES had data for) in Virginia for per pupil spending. Stafford County, the 12^th richest county in the nation, ranks 87^th in Virginia in per pupil spending. Again, Virginia ranks in the bottom of the nation in per pupil spending and Stafford County ranks in the bottom of Virginia for per pupil spending. If you don’t see anything wrong with this, you should!

Based on per pupil spending, it should also be no wonder that Stafford County’s average teacher’s salary (per the Stafford Superintendent’s FY’11 Budget) is below the state and national averages. An average teacher in Stafford County makes $51,341. This is $808 below the state average and $4,734 below the national average. That’s right, a teacher in the 12^th richest county in the nation makes 10 percent less than the national average.

What our elected officials fail to realize is that investing in education is one of the best investments that you can make. This is further evidenced by Bill Howell’s (R-28^th) recent attempt to mislead constituents on the subject.

Last week the Republican majority on the Board of Supervisors, including Howell disciple Supervisor Susan Stimpson (R-Falmouth), made things even worse for Stafford County schools in FY’11 by failing to appropriate $3.6 million in debt service savings to them that that they planned on using to offset the $26 million deficit (soon to be more thanks to Howell) they are facing. Combine this with the fact that the Republicans on the Board of Supervisors voted to repeal BPOL and covered it in the FY’10 budget by spending part of a school surplus, impacting our schools negatively to the tune of $7.4 million, it should be no surprise to folks that our local and statewide elected officials don’t have their priorities straight.

The 12^th richest county in the nation currently has 53 percent of our schools failing to meet Annual Yearly Progress requirements. Enough is enough already. We need leaders who understand the clear correlation between future economic growth and well-educated children. Howell and his Republican counterparts on the Stafford County Board of Supervisors are out of touch with reality.

The 12^th richest county shouldn’t be in a race to the bottom in our schools, but a race to the top!

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By Marc, February 9, 2010 7:40 pm

In case you missed it (given all of our winter weather), the Republican majority on the Stafford County Board of Supervisors repealed the Business, Professional and Occupational License (BPOL) tax on February 2, 2010. I pretty much said that this was a forgone conclusion in my last post on the subject here. I’m not going to reiterate all the points I’ve already made on the topic, so if you’re interested check out my last post.

For those that were unable to attend the public hearing, I decided to put together a little video of highlights lowlights. I actually think that the Republicans can teach a course on the art of twisting the facts. As Albert Einstein once said,

If the facts don’t fit the theory, change the facts.

A few key takeaways before you go. I certainly have some issues with BPOL in general; however, what troubles me the most is the fact that Stafford Republicans continue to misrepresent the facts to further their position on the issue.

They refuse on leveling with residents on how they plan on addressing the huge shortfalls present in the FY ’11 budget. Yeah the $26 million school shortfall and the upwards of $19 million shortfall in the county budget.

It still makes no sense to me that Republicans would use a surplus, which could have been used to lessen the impact of the tremendous shortfalls projected in the upcoming budget, to repeal an annual revenue source that some predict would equate to $140 million over the next 20-years.

For FY ’11, it was projected that BPOL would provide the county with $3.7 million of revenue. Combine the $3.7 million of BPOL revenue now lost with the $3.7 million of the surplus that must be used to cover the costs of repealing BPOL in the FY ’10 budget and the total impact to the FY ’11 budget is $7.4 million. So when the county is facing tough fiscal realities, the Republicans vote to make things even worse for the county, our schools, our roads, our law enforcement and our fire and rescue.  That $7.4 million could have meant that more teachers and deputies would be able to keep their jobs. It could have meant that some much needed road improvement projects were able to happen next year.

The Republicans have failed to have an honest debate with the public on the impact of the decisions that they are making. The reality is that Republicans will have one of two choices now: (1) Drastically reduce core services or (2) raise taxes on existing homeowners. They failed to level with residents during the BPOL debate and chose to avoid laying out the impact of their decisions.

Stafford County is the second fasting growing County in Virginia and, as such, has an ever-increasing need in maintaining and improving core services. As I stated previously, 53% of Stafford Schools do not currently meet Annual Yearly Progress requirements. Will businesses really choose to relocate to a school system that is failing? I think not.

Listen, I have no problem with repealing the BPOL tax as long as the Republicans showed how they planned on replacing this revenue source. BPOL is not a perfect tax, but it is one of the only tools that localities have on raising revenue locally that is not on the back of homeowners or consumers. If businesses have problems with the structure of BPOL, they need to work with their delegates and state senators to fully address them in the General Assembly. I do think that small businesses have some really good points on BPOL. What we need is an equitable tax structure for homeowners, consumers and businesses.

In the end, I’m most upset by the fact that the Republicans used a recently found surplus (due to an administrative error) to repeal BPOL. This is the same surplus that they cried about holding onto back in December when Democrats proposed spending it. I was equally critical of spending this surplus when Democrats tried to do it too.

This political posturing must end and the residents of Stafford County deserve to be put first again!