PRINCE EDWARD – The General Assembly is at a budget impasse, but even looking at the best-option of three possible budgets, tougher decisions loom for the County's schools.

If the Governor's proposed budget is approved, the school division would have $709,923 less in state funds.

Should the House of Delegates version be adopted, there would be $674,676 fewer state dollars.

And if a proposed Senate budget plan is okayed, that would mean $518,327 less.

Add to the mix the elimination of federal funding (on both the income and expenditure sides of the ledger), a 2.6 percent decrease in health insurance costs as opposed to an increase initially penciled in, an $876,000 in the Virginia Retirement System (VRS) rate increase, a two percent salary increase and-even factoring a list of identified reductions totaling $1,193,469-the school division still faces a $688,154 budget challenge.

Barring additional funding, that could mean even more cuts.

“It's not as if we were able to go through and identify nearly $1.2 million of just money that wasn't needed…,” Division Superintendent Dr. David Smith said of the proposed level one cuts at a joint Board of Supervisors and School Board meeting Tuesday evening. “It's not that at all. But this number gets us to a point where there's only $688,000…and those cuts are gonna go much deeper into the instructional program.”

He also added, “…This comes at a time when we're really struggling to provide the services and resources that are needed to help continue the school improvement efforts that are underway in all three schools. That's what makes this even more difficult.”

Reductions already factored include $175,825 unfilled positions from this year, but six teachers/administration/support positions for those retiring or known to be leaving (a reduction of $391,734); three teaching positions (two from the Spanish program) and five instructional aide positions at the elementary school (totaling $299,940) and reductions that include the Read 180 program and the JROTC program.

Also factored is trimming a two percent salary increase to one percent.

Another level below that, Dr. Smith said, is eliminating the increase completely, which he asserted puts “all of our employees in a very difficult position as all of their costs continue to increase.”

In the last two school years, the superintendent cited, they've cut “it looks like 24 positions total,” though not all of them were teaching positions.

“So there's been a significant reduction in personnel,” Dr. Smith said. “We tend to want to say, well, the…enrollment's declining…but operating costs are staying the same and staffing's staying the same. That's not true. These are huge personnel reductions.”

He also offered, “We can't continue to show increases as we're taking staff away. It just doesn't work.”

Student numbers have declined in recent years-the 2011-12 budget was based on an average daily membership (ADM) of 2,372; the proposed budget factors an ADM of 2,270.

Another factor adding to the financial challenge is a change in the state's composite index-a formula that calculates a portion of state versus local funding-changed to shift more of the funding burden to the locality. The composite index is going from .3043 to .3265, or a .0222 increase, reducing state revenues and meaning the locality is to contribute an additional two cents on the dollar.

“…The combination of lower projected revenues from the state and the increased expenses with VRS and the increased costs because of the composite index change, those are our biggest impacts,” Dr. Smith said.

The biggest piece of the budgeting puzzle will come when the General Assembly approves a budget plan. The school board, however, is scheduled to consider approving a budget to send to supervisors on March 21.

Ultimately, the board of supervisors will have to approve the school's funding.