The Department of Education is preparing for some tough spending decisions as it faces the spectre of federal budget cuts, a so-so economic picture and the roll-out of key new initiatives that could carry big price tags.
DOE officials told Board of Education members Tuesday that in drawing up budget proposals for the 2013-14 and 2014-15 fiscal years, the department has been poring over its spending to see how each program fits with its new strategic plan.
"We’re trying to align to make sure that all of our strategies are funded and to make sure we don’t have any programs that don’t fit our strategic plan," said Amy Kunz, the DOE’s chief financial officer.
Kunz said the department plans to submit its proposed budget for the upcoming biennium next month. The DOE has been told to keep spending at about current levels.
That almost certainly means some programs will have to be cut to make other initiatives possible.
Schools Superintendent Kathryn Matayoshi pointed out, for example, that the DOE will need to spend about $32 million on new instructional materials to match the new nationally standardized learning benchmarks, which will be implemented in all grades in the 2013-14 school year. It is also adding $745,000 to start accrediting schools.
Also, the state’s federal $75 million Race to the Top grant ends in 2014. The department wants to make sure that when funding dries up, several Race initiatives don’t die, Matayoshi said.
Meanwhile, the department is also monitoring federal discussions about possible deep budget cuts. If they aren’t averted, those cuts could affect the department as early as January, but the biggest hits would be seen in the 2013-14 school year.
The state financial forecast is also less than rosy.
Luis Salaveria, deputy director of the state Department of Budget and Finance, told the BOE’s Finance and Infrastructure Committee on Tuesday that while the economic picture may have improved, there are a number of reasons to be cautious about spending, including continued economic uncertainty and unfunded future pension and health benefit costs.
Following the presentation, BOE Vice Chairman Brian De Lima said, "Obviously, the message is, there is no money."
Salaveria agreed.
The DOE’s budget totaled about $1.76 billion this fiscal year, not counting fringe benefits for employees or debt service.
While it plans for the future, the DOE is also worrying about its spending for this school year. Last month the governor asked state agencies to restrict discretionary spending by 5 percent. For the department, that means it has had to reduce spending by about $12 million.
Kunz recently asked the governor to reconsider the restriction for some of the DOE’s funds, including those used for utilities, student transportation and adult education. The department is instead asking that it reduce spending by about $5 million.
