Miami Herald: Forum discusses Miami-Dade schools budget gap
Feb 23, 2010
The Miami Herald published this article on February 23, 2010.
BY KATHLEEN McGRORY
Hoping to turn up the pressure in advance of next month’s legislative session, the Miami-Dade school district held a community forum Monday night to discuss its potential budget gap.
Schools Superintendent Alberto Carvalho said he expects local property values to drop by 15 percent this year — resulting in a $190 million loss in funding for the school system.
On Monday, Carvalho called upon state lawmakers to spare the district from further cuts.
“The state should not right itself on the backs of children,” the superintendent said.
Revenue into the Miami-Dade school system, the nation’s fourth largest, has dropped by $1.2 billion over the past three years.
The school district has two main sources of revenue: sales tax dollars from the state and local property tax dollars.
Although money from the state once made up the largest revenue stream, Florida school districts now rely more heavily on property tax dollars.
If the Miami-Dade tax roll falls by $35 billion, as it is expected to do, the impact on schools could be serious, Carvalho said.
The district may also face a cut in funding from the state.
Economists say Florida will likely face a shortfall of between $1.1 billion to $3.2 billion.
Gov. Charlie Crist has said he’ll push for an increase in education spending. But leaders in both the House and Senate have called that plan overly optimistic. State representatives will likely consider a 15 percent cut to education — an action that would cost the Miami-Dade district $150 million.
MORE CHALLENGES
If Florida school districts are required to further shrink class sizes, the Miami-Dade district would need to spend another $97 million to comply.
The district is supporting proposed legislation that would ease the state’s class-size rules given the current budget crunch.
“If you think the last several years have been difficult, it’s going to get even more difficult,” said Chief Financial Officer Richard Hinds. “All of the low-hanging fruit, the easy stuff to cut, is cut. We will have to go beyond that.”
The Broward school district faces similar challenges — and Superintendent Jim Notter has said this year’s budget cuts could be just as painful as those from last year.
Notter recently said his district will likely have to cut $47 million from its construction, maintenance and technology budget and $62.8 million from the pot that funds teacher salaries, school activities and central administration.
The situation could mean layoffs for Broward teachers or staff, Notter said.
Carvalho does not believe teacher layoffs will be needed to balance the Miami-Dade budget.
SAVING MONEY
He pointed to the budget efficiencies he and his team have created in recent years. For example, they cut central office costs last year, while boosting the rainy-day fund to $77 million.
The district also dropped its healthcare provider, instead electing to become a self-insured entity. Doing so saved the school system more than $77 million, Carvalho said.
“A year and a half ago, we were on the brink of disaster with virtually no money in the reserves,” said Carvalho. “But we improved.”
Despite the budget difficulties, Carvalho noted that student achievement is on the rise, especially among Hispanic students.
HIGH MARKS
This year, Miami-Dade students outperformed their peers in other major U.S. cities on the National Assessment on Educational Progress.
Hispanic students taking Advanced Placement tests also made significant gains, Carvalho said.
Karin Brown, president of the Florida PTA, urged people — teachers, parents and politicos — to work together to solve the funding crisis.
“We need to come together,” Brown said. “We need to be one voice for every child throughout the state.”