Stephens BOE Eliminates Crossroads School, More Cuts Expected

By Charlie Bauder, WNEG Radio, Toccoa

More fallout from the ongoing financial crisis within the Stephens County school system.

Earlier this week, the board voted 6- 1 to both abolish the Crossroads Alternative school program and eliminate all six staff positions.

They also cut seven furlough days for all employees – that in addition to cuts made at the beginning of the year.

The board plans to meet again this morning to discuss further budget reductions.

Stephens County School Superintendent Bryan Dorsey says it’s a matter of cash flow – or lack thereof.

“In our business, we always deal with a budget forecast of July 1 to June 30 and we know we cannot go below zero (in our fund balance),” said Dorsey. “That gives you an adjustment period. What has happened to us is we went below zero, we have been borrowing basically our ‘max,’ and we have been borrowing it earlier and earlier so that now we cannot make a cash flow jump.”

Stephens County school officials say the system needs about $1 million in local tax revenue each month in addition to other funding sources just to pay its bills each month.

And because most of that revenue comes in in the fall, almost all of the local tax revenue collected last fall is already gone.

Dorsey said that means the school system will have to borrow more money in February to cover the million-dollar gap until local tax revenue comes in again next fall.

The school system expects to borrow $7 million in tax anticipation notes, which will then have to be paid back by December 31st with next fall’s tax revenue.

According to Dorsey the problem is if no changes are made, the school system would not collect enough tax revenue to both pay back what is borrowed and have enough to make sure the bills could get paid through the end of the calendar year.

As a result, Dorsey says immediate cuts were needed.

“If you wait until July 1, there is only one or two months to get all that revenue back,” said Dorsey, citing the way personnel fits into the budget. “It is impossible. We cannot cut enough fast enough at that point to absorb this.”

Dorsey says the goal right now is to find enough savings to get the school system enough money to cover its costs into the first part of next calendar year, provided nothing unexpected happens, which would require additional expenses.

“We have been put in financial peril,” said Dorsey.

The Crossroads alternative school will likely close around the first week of February, if not sooner.  He says those students will then move to a similar environment at their home school.