Supervisors Seek More Dialogue With Schools

Clash Over Long-Term Budget Prompts Proposal to Create Joint Committee Between County Boards

A disagreement over the Prince William County School Board's five-year budget plan has the Board of County Supervisors rethinking communication lines between the two governing bodies.

The amount of information they share is minimal, county supervisors said, and that needs to change.

"Our relationship is fair; we generally don't get involved in their business, and they don't get involved in ours," said Board of County Supervisors Chairman Corey A. Stewart (R-At Large). "But at budget time our paths cross, and I think it's important we meet earlier in the year so at budget time, there's [consensus] on what the budgets should look like."

On Tuesday, supervisors drafted a resolution to establish a board-to-board budget committee. The group would meet year-round to discuss finances, Stewart said, and include both board chairmen and one more representative from each governing body. Manassas has a similar joint finance committee.

"I would characterize our relationship now more as a sibling rivalry; we each work to advance our own institutional goals, but we do it in the spirit that we are one Prince William family," said School Board Chairman Milton C. Johns (At Large). "I have no objection to this new committee, and I think it's a good idea. We haven't discussed it yet as a board, but I believe no one will object to it."

Board officials said a joint committee had existed but fizzled out. The idea resurfaced this year when supervisors and School Board members disagreed on the school system's five-year budget forecast. Although the forecast predicts a balanced school budget through fiscal 2011, it shows a deficit of $10 million in 2012 and about $13 million in 2013 before balancing again in fiscal 2014.

That, some supervisors said, is a problem. It could have been mitigated, they said, if the School Board hadn't provided teachers with a 2.9 percent cost-of-living salary increase next year -- something school officials deemed necessary to retain staff.

"This five-year forecast is still a big concern," said Supervisor John D. Jenkins (D-Neabsco), who will probably sit on the new committee. "We need to talk to them about what measures need to be considered in order to balance the budget in the out years. If they have a deficit in three years, how are you then going to recover?"

Stewart said he is concerned that a five-year plan that shows shortfalls could risk the county's AAA bond, or credit, rating. He also wants to know how school officials plan to close the gap, especially because state and county revenue projections aren't faring well in the economic downturn.

"Regardless of how well we manage on the county side, if the schools don't do the same, it could jeopardize our bond rating," Stewart said, adding that the county's five-year plan balances the budget every year. School board members "are saying they will fix the problem when they come to it in a few years, but that defeats the purpose of planning ahead -- that's what has the board and county staff upset."

Schools spokesman Ken Blackstone said the projected shortfalls are "non-reoccurring" in nature and can be addressed in numerous ways, including reducing capital projects. Blackstone said it is not the first time a five-year forecast has shown revenue shortfalls in outlying years. State law also requires the board to balance its current budget, so measures will be taken to address the shortfall if it exists in 2012.

"Many, many times in the five-year plan, we have shown a deficit," said School Board member Grant Lattin (Occoquan). "The important thing, though, is every budget this board creates will be one that is within budget for the year we are working on, and we will make whatever adjustments we have to to do that."

The county, which gave the schools $407.8 million for fiscal 2010, has a revenue-sharing agreement, providing the school system with 56.75 percent of the county's annual revenue. That, however, does not give county officials the authority to determine how schools use their funding.

Stewart and Jenkins said the board-to-board committee will allow supervisors and board members to interact on a regular basis and give supervisors a chance to provide more input on how the board allocates its funds. The committee will also allow supervisors to keep the School Board informed about the county's financial state, which is crucial given that 44 percent of the school system's revenue comes from the county.

The terms of the committee have yet to be agreed to by School Board members. Meetings would begin as soon as supervisors finalize the resolution and the School Board signs off.

"I hope the School Board agrees to this," supervisor Jenkins said. "We have a working relationship, but it needs some improvement, and I think this will really help."