Don’t Dip Into Your Savings Account During a Recession
On Monday June 13, 2022 all of the major US stock indices officially entered a “bear” market, meaning that the Dow Jones, the NASDAQ, and the S&P 500 all fell 20% (or more) below the gains one year ago. Couple that with a 40-year record inflation rate and a Federal Reserve that just hiked the interest rate again by 75 basis points (30-year mortgages now at 7%), and you have the indicators of a national recession.
On Tuesday June 14, 2022 the Superintendent of Newton County Schools presented a FY23 budget where expenses exceeded revenue by $15+ million. Simply put, we are looking at spending more than we collect, so we will need to dip into our savings account to make ends meet.
Now I want to be quick to commend our Superintendent and her Executive Team for their work over the past 10 years which has provided the school system with a healthy “ending fund balance” (aka savings account.) Their previous work allows us the financial margin we need to survive, and maybe thrive, during the impending recession.
BUT, in our meeting Tuesday, I warned that you don’t dip into your savings account during a recession. Yes, we have a healthy ending fund balance. But with the nation heading into a recession, now is NOT the time to dip into that savings account. Now is the time to play it conservatively and use the ending fund balance to make ends meet. That means, continuing to pay our teachers top dollar and limiting all purchases and any staff positions that are not essential to the operation of Newton County Schools. This may sound drastic. But I want to reiterate that if we continue to spend more than we collect, then the only option is to raise taxes (and forget senior tax exemption.) And I’m NOT ready to do either (see my post about that here). I’d rather our Super and our system take the time necessary to re-evaluate every expense and then cut whatever necessary to keep our expense in line with our revenue.
I don’t think that I have the support of the board to stop this budget. I’ve pleaded. I’ve made my case multiple times for us to support teachers and focus on the basics: reading, writing, and ‘rithmetic, and stop unnecessary spending. But I believe the budget will pass with a vote of 4-1 (with me as the only “nay” vote). This just makes the election this Fall that much more important. We need fiscally-conservative board members, local commissioners, State Superintendent, and a Governor who care deeply for the kids and teachers of Newton County, but who also care deeply for the tax payers who fund these schools.
[These comments can be found in the Work Session video below at the 6:48 mark. Unfortunately, no one even commented or engaged in the discussion. We simply moved to the next agenda item. The FY23 budget will be up for a vote on Tuesday June 21, 2022. And that meeting offers a time for public comment. I would encourage all fiscally conservative citizens to show up and speak up.]
We covered so much during this meeting. Here is a breakdown of topics that I felt to be the most important, and the time stamp from the video:
16:04 - Discussion of GSBA Risk Management Property/Liability Insurance. This is a $1+ million decision. I believe this level of insurance coverage should be open bid to our local agents.
35:04 - This line item regards the organization called Community In Schools. This group helps remove obstacles for student achievement. They help our kids in poverty by offering wrap-around services IN OUR SHCOOL BUILDINGS. I’ve seen the proof that this works. This initiative excites me!!! See the video for more information.
48:53 - Professional Learning Communities (PLC). This section of the meeting was over 30 minutes and covered PLCs and their effectiveness. PLCs could easily be seen as “another meeting” for teachers, busying up their time and keeping them from the task at hand. Some teachers have a hard time finding the value in these PLCs, so I wanted to push-back on the agenda item and get more clarity. In order for PLCs to be successful, my statement was, “I want to hear teachers that are excited about PLCs” and Ms. Coggin added, “teachers should not see this as micromanagement.”
In the section beginning at 48:53 we also discussed the new District-Guiding Coalition and the School-based Coalitions. This sounds like an opportunity for the voice of teachers to truly be heard. I encourage all teachers to listen to this section and let me know if we are understanding PLCs the same way you do.
1:08:00 - Here I make the statement that, “teachers in the classroom will make the best decision for what is best for their students’ needs with curriculum and resources,” therefore we should lean heavily on what they are saying.
I know this is a long meeting with 30 agenda items, but it is important that we pay attention.
Please watch (click the link above).
Please send me comments by clicking the envelope at the top of this blog.
And because we need someone fighting for this cause, please consider donating to my re-election campaign by clicking the “Donate” button at the top of this page. I am running opposed this Fall and I could use your support.
