Calvert County Superintendent of Schools Dr. Daniel Curry

Prince Frederick, MD  – After two years of using fund balances to break even on its operating budget, Calvert County Public Schools (CCPS) is about to give its annual spending plan an overhaul.

During a Thursday, Nov. 20 work session, the Calvert County Board of Education (BOE) received a budget presentation from CCPS Director of Finance Edith Hutchins. The strategy is geared to wean the school system off its routine use of reserve money to balance budgets, identify areas of wasteful spending, reassess staffing needs, cut healthcare costs and provide much clamored-for raises for employees.

“It’s a start,” said Hutchins, of the strategy, which calls for a 5 percent budget reduction for all of the system’s departments and schools. “We need to start living within our means.”

As it stands now, the BOE needs to trim $2.6 million from the current fiscal year’s budget.

Superintendent of Schools Dr. Daniel Curry said the goal is to reduce CCPS’ spending by $5.6 million for fiscal year (FY) 2016.

School officials acknowledge the Calvert County Commissioners have consistently provided local funding well above the state-mandated maintenance of effort. With a steadily declining enrollment and Calvert’s high household incomes (a yardstick the state uses to measure wealth), CCPS has seen a significant drop in its state allocation. Adding to the heartburn is the state legislature’s action from a few sessions ago to shift teacher pension funding responsibilities from the state to the local jurisdictions.

Of the possible across-the-board reductions in staff, Curry conceded “this is where we’re going to find the most money.” While talk of staffing reductions usually causes concern that class sizes will have to be increased, the superintendent affirmed, “we are looking at those positions that won’t increase class size.”

The reductions for departments involve budget requirements and do not include salaries.

The reductions for schools involve per pupil allocations. Elementary schools’ per pupil funding, which is $118.02 per pupil, will be reduced by $6.21 per pupil. Middle schools’ per pupil funding, which is $123.28 per pupil, will be reduced by $6.49 per pupil. High schools’ per pupil funding, which is $137.40 per pupil, will be reduced by $7.23 per pupil.

In addition to trying to make its operating budget leaner, CCPS officials hope to rein in the health benefits costs, which are trending towards dangerously unaffordable numbers. Hutchins pointed out that health benefit costs are driven by the types of plans offered, the premium split between employees and CCPS, prescription copays and the annual claims experience.

According to a CCPS press release issued after the work session, school officials have determined that “the costs for healthcare benefits in employee contracts have more than doubled, from approximately $15,000,000 in FY 2004 to $33,000,000 in FY 2015. The cost trend for FY 2016 through FY 2020 reflects projected costs based upon a 5 percent annual increase to conservatively illustrate the impact of continued increases in health insurance costs over the next five years. This trend shows that health insurance costs will exceed $42,000,000 by 2020. This represents an increase of more than $9,000,000—approximately 27 percent–over the next 5 years.”

“We have to do something now,” said Hutchins.

Back in October a committee comprised of school administrators recommended the BOE allocate $48,000 to “piggyback” on Carroll County’s request for proposal seeking insurance consulting services. Calvert’s current plan for public school employees covers medical, prescription, vision and dental; and the plans offered are traditional, preferred provider organization and health maintenance organization. There is a near certainty that severing ties with CCPS’ current vendor— CareFirst BlueCross/Blue Shield—will mean the end of the traditional plan, for which only those employees hired prior to July 1, 2001 are eligible.

Administrators and BOE members have urged representatives of the Calvert Education Association (CEA) and Calvert Association of Educational Support Staff (CAESS) to join them in the discussion of what to do regarding the CCPS’ health benefits package. So far those employee representatives have declined to participate.

Hutchins noted Curry is asking CCPS staff to “share ideas” for budgeting.

“We have to look at doing business differently,” said Hutchins.

Contact Marty Madden at marty.madden@thebaynet.com