School board adopts budget

Last week, the Orange County School Board unanimously approved its $41.6 million budget, which includes $4.1 million in budget cuts to cover a $3.2 million projected shortfall.
The approved budget calls for the reduction of 54 full-time and one part-time positions as well as the previously discussed plan for funding extracurricular activities, including athletics, at a reduced rate with reduced stipends for coaches and activities sponsors. The remainder of extracurricular costs will be funded through pay-to-play, gate receipts, fundraising and sponsorships. Initially, board members felt they may not be able to fund the activities while also reinstating an additional four positions. However, the board recently learned it would accumulate $1.19 million in reduced costs associated with Virginia Retirement System (VRS) decreases.
Each local school board is required to contribute to the VRS on behalf of employee retirement pensions, group life insurance and retirement health care credits. Every two years, VRS rates are adjusted subject to approval by the governor and the General Assembly. Earlier in the state's budget process, former Governor Tim Kaine proposed an increase in VRS rates, from 15.64 percent to 17.52 percent which would have resulted in an increase in expenses for school divisions during a tough budget year. However, by the time the final General Assembly budget was formed, the increase in VRS became a decrease, from 15.64 percent to 9.81 percent.
Part of the VRS savings has been used to recall the four additional positions in question. The remaining $950,000 has been set aside for the time being, with board members expected to decide how to spend the money at a special worksession Thursday.
Other major changes in the final budget include an increase in school meal prices. According to director of finance Barbara Hill, breakfast and lunch prices did not increase last year. She said Orange lags behind other counties' meal prices.
"An increase [in 2010-2011] will catch us up a little," she said.
Elementary school students currently pay $0.95 for breakfast and $1.70 for lunch. Secondary students pay $1.15 for breakfast and $1.85 for lunch. Adults pay $1.85 for breakfast and $2.55 for lunch. Starting in the fall, elementary students will pay $1.00 for breakfast and $2.00 for lunch while secondary students will pay $1.25 for breakfast and $2.25 for lunch. Adults will still pay $1.85 for breakfast and will pay $3.00 for lunch.
The early-retirement plan was also passed as part of the budget. Full-time, vested (those with five years of service in the VRS) employees of the Orange County School Board are eligible to participate providing they meet one of three requirements. Employees must have a minimum of 30 years of VRS credit by the end of their current contract, a minimum of 25 years and will be at least 55 by the end of their current contract or a minimum of 5 years and be at least 60 by the end of their current contract to be eligible for the early retirement plan. Participants will receive an additional 20 percent based on their final contracted salary. Currently, nine applications have been received. Applications will be accepted until June 1.
The 2010-2011 budget will begin July 1. A worksession to tie up lose ends regarding the VRS funds will be held May 13 at 3 p.m.