The Rising Cost of Low Student Spending

By Diane Mouskourie, The Daily News, Jacksonville, N.C.

Jun. 11–For years Onslow County lagged behind other counties in North Carolina in the amount of money it spends per student on education.

It’s a gap that has persisted over the past decade, said Jeff Hollamon, finance officer of Onslow County Schools. The 10-year average for Onslow is $694, the state average is $1,150. The gap in expenditure between the state and the county averages $456 over School officials say that’s a steep dropoff for a county that ranks 10th largest of 100 counties in terms of population and 25 out of 100 in its ability to pay for education, according to state figures. Yet the county checks in at 75th in terms of its effort toward paying for school needs, according to the N.C. Department of Public Instruction.

The practice of paying less than the state says Onslow can afford for education may be catching up with the county, Hollamon said. He’s projecting an estimated $1.1 million shortfall for Onslow County in state low-wealth money, funds that normally go to poorer school systems and helps offset those counties’ contributions.

Onslow County isn’t helping itself enough to help itself to available state money, Hollamon said.

“That money that would have come to Onslow County will now go to other low-wealth counties,” Hollamon said. “The total amount will not be known until the state approves its budget for next year.”

Budget questions

On May 1, when the county Board of Education presented its proposed 2006-07 budget to county commissioners, it asked for enough money to replace the loss of low-wealth funds plus some. Overall, the school district asked the county to fund $28.7 million of its $41 million operating budget, a $6.5 million increase over the current level.

Nearly $1.7 million of that request has been earmarked to hire 33 locally-paid teachers and provide a 1 percent increase in teacher supplement pay, Hollamon said.

In addition to the operating fund, the school district asked the county for $3 million to cover capital expenses, the same as last year, Hollamon said. The district did not ask for an increase in capital expense since the needs in the operational budget were so extensive and the county had already addressed the most urgent building defiiencies through school bonds and other financing, he said.

Onslow County expects to begin assuming debt payments on the $90 million school bonds approved by voters in November 2005 in addition to another $15 million it borrowed to pay for construction of the new Meadow View Elementary School.

County Manager Frank Clifton is recommending that the county give the school district a $1.8 million increase over the current year’s budget, a third of what was asked for. At the same time, Clifton said the county has many urgent needs beyond the schools that require attention this budget year. Those issues include replacing an outdated, overcrowded jail; upgrading several county buildings so that they meet current standards; and meeting increased demands in human services.

Taking care of it all might not be possible, Clifton said. Priorities have to be established.

No surprise

Onslow Schools officials say they expected to lose low-wealth funding this year. It’s something they warned the commissioners about the past few budget cycles. Historically, the county has spent about 85 percent of what the state says it can afford to pay for education, Hollamon said.

“Clifton’s recent recommendation to commissioners would drop that effort to about 83 percent,” he said.

The state’s calculation for low-wealth status takes into account that some counties cannot spend as much on education as other more affluent counties.

“North Carolina calculates each county’s ability to pay based on its wealth,” Hollamon said. “Essentially, the state is saying that it will help us to the extent that we are willing to help ourselves.”

In that vein, the state expects each county to spend as much on education as it can reasonably afford according to a state formula, he said.

“In order to restore the state’s low-wealth funding to 100 percent, the county needs to spend 100 percent or more of what the state says it can afford to spend,” Hollamon said. “For every year the county does not fund education at 100 percent of its expected effort, low wealth funds earmarked for our students will be diverted to other counties for their students.”

Working it out

The county’s budget counter-proposal stunned school officials, who scrambled to prepare for a hastily called meeting last Monday to discuss the issue.

During that presentation, Superintendent Ron Singletary thanked the commissioners for supporting the school district’s most urgent contruction needs last year. But much more needs to be done, he explained, so Onslow County students can compete on an even field with other North Carolina students for entry into college or the job market.

“We all know, providing the necessary brick and mortar is just a small piece of the puzzle in supporting a quality education for the students of Onslow County,” Singletary told the commissioners. “The most important part of what we do occurs within those classroom walls “¦ and that is teaching and learning.”

Hiring new teachers would help the county offer students more advanced course opportunities.

Leslie Eason, principal at Dixon High School, made a plea for students.

“In our system we work daily to address federal and state mandates and to continue to meet the needs of each of our students,” Eason told commissioners. “We now find ourselves at a crossroads where we must grow and give our students additional opportunities in order for them to be as successful as they can.”

Providing 33 new teachers is paramount, she said.

“Throughout the state, students are already involved in advanced placement and honors offerings,” Eason said. “We want and need for our students to have the opportunities other students are already receiving.”

Some students would benefit from language classes in Japanese or German. In some school districts students can enroll in intensive pre-med programs, but not in Onslow.

“We must afford our students that strength of transcript in order for them to be truly competitive in scholarship and college competitions,” Eason said. “When we serve Onslow County students as the best and the brightest, we must offer the best and most intensive curriculum initiatives and programs.”

But beyond a tax increase, there may be little wiggle room for the county. Clifton said his recommendation to commissioners on the school budget took into consideration the amount of money being lost from low-wealth funds and allowed for a 5-percent increase to offset the escalating costs related to operations such as diesel fuel, gas, electricity and insurance.

“All of the economic factors impacting Onslow citizens also impact county government,” Clifton said.

Higher fuel prices, higher utility costs and escalation in business operating expenses all impact the county, he said. The county is mandated by the federal and state governments to provide specific services and programs regardless of other considerations.

“Beyond mandates there are county services that, although optional, the public or a segment of the public considers important and useful,” Clifton said. “Paying for them is another issue.”

Contact staff writer Diane Mouskourie at dmouskourie@freedomenc.com or 353-1171, Ext. 235.

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Copyright (c) 2006, The Daily News, Jacksonville, N.C.

Distributed by Knight Ridder/Tribune Business News.

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