Board, School Board Discuss "New Fiscal Reality"

Nov. 18, 2009

You can just say Mr. Stanley of the Board of Supervisors listens as Mr. Millican of the School Board makes a point

The Hanover Board of Supervisors and Hanover School Board held a rare joint session last week to hear reports on the unprecedented fiscal reality the County faces.

County and School budgets face severe cuts in the upcoming Fiscal Year because the economy has dramatically decreased all the revenues on which local governments depend. In addition to drops in sales and personal property tax receipts and home values, the County will be further impacted by cuts in state support to be announced by the governor next month.

The result could be cuts ranging from $16 million to $22 million in the fiscal year that begins July 1, 2010, budget officials told the Board and School Board.

School superintendent Dr. Stewart Roberson called it “the perfect storm” of bad news for the school system, with the revenue decrease and the loss of federal stimulus funding being compounded by lower enrollment and a recent change in the state’s ability-to-pay index. All of these will hurt Hanover County. 

Deputy County Administrator Joe Casey told the Board and School Board noted that ‘traditional’ budget cuts, such as deferring capital projects and purchases, had been made this fiscal year, when the County and School budgets decreased for the first time since the early 1990’s. “What we are cutting now is meat,” Casey said. “The question is how much meat can you cut before you hit bone?”

Dr. Roberson will present his proposed budget to the School board on Jan. 12, 2010. The School Board will hold its public hearing on Jan. 19 and is scheduled to adopt a proposed budget on Jan. 26. The County Administrator will propose a Fiscal Year 2011 budget to the Board on Feb. 26.