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Recently, Fayette County School Board member Mr. Roy Rabold wrote to this paper with feedback on ideas I presented on these pages. I appreciate him taking time to respond and add to our conversation.
First, as he notes, these articles are meant to be a discussion of issues and ideas and I am not offended by disagreement and certainly do not feel thrown under the bus. More importantly, many “what if” alternatives are not proven solutions but rather potential avenues of exploration.
As I respond to some of his points, I want to be clear that while we disagree, I do have admiration and respect for Mr. Rabold.
Back to the excellent Fayette County Schools. Mr. Rabold properly summarizes what my point has been, Expenses are growing at a rate of five percent, but the revenue growth is capped at three percent. Therefore, without additional revenue, the budget growth is also limited to three percent. End of the day, we need to change our plans to react to the current situation.
Therefore, I have written about the urgency to find a way to control costs to maximize the resources available in our schools. One avenue I suggested is outsourcing, which has been a consideration across many different entities both public and private.
Mr. Rablod states, “He (me) mentions contracting custodial services to a private vendor. The school district did look at outsourcing custodial services several years ago. The main deterrent for the Board was the custodial employees would not have as good of a benefits package as they have now.
“The scenario did guarantee pay rates of current employees, but they would no longer be under the State Health Benefit Plan or have other school district benefits. Future employees of the vendor would be at lower pay rates under a new benefits package. The savings under that system took several years to realize since the savings came from turning over the staff to pay at lower rates with lesser benefits package.”
That’s true. Personnel cost savings from outsourcing come from removing them from the generous state benefit plans that have cost growth much higher than revenue growth, is a way to save dollars that can be used in the classroom.
After all, the “E” in FCBOE is for education, not employment. By choosing a more robust employment model, the choice is, no matter how well intentioned, to put employees before students. This is a question many employers and leaders struggle with.
Mr. Rabold did correctly point out that our nutrition programs do not use operational or general funds, which is exciting. It seems like experience with the outsourcing model here is mixed. Atlanta Public School has cycled through a few different vendors before bringing it back in house this year from Aramark. Pike County is currently using Sodexo.
While I have focused my articles on finding ways to control costs to provide more money for teachers and school staff, Mr. Rabold states, we could have 187 more teachers if only the taxpayers would give the school board unlimited growth in revenue hidden by the growth in property value.
Unfortunately, Mr. Rabold gives up the reality that the cuts will continue until the taxpayers give up their homestead exemption.
Based on Mr. Rabold’s estimate of $117,000 as the cost of one teacher, this would be an increase of almost twenty-two million dollars or a property tax increase of over fifteen percent based on the local taxes identified in the 2025 budget.
Alternatively, Mr. Rabold and the rest of the FCBOE could also choose to raise rates by asking the voters to increase the milage rates above twenty mills. This would also provide the same 187 teachers. However, standing before the taxpayers and asking for a tax increase and making the case based on facts and not emotions is not as easy as it sounds. Trust me I know.
We all remember that this latest homestead exemption was voted by the taxpayers after the FCBOE voted itself a brand-new middle school (Booth) from ESPLOST III funds without previously disclosing this to taxpayers before the vote.
For voters such as myself, this choice ended the implicit trust that had existed. While I still trust the school system, I voted for the exemption as a control on spending to create greater visibility. Ironically, the motion to build the new Booth Middle School made by Mr. Rabold.
While Mr. Rabold brings us back to 1986, I would rather start at 2007 when I got publicly involved with the first ESPLOST that passed as I was in high school in 1986. That ESPLOST was passed by the voters after an earlier one was defeated.
His comments on my reserve position, missed the mark. He focused on cash management and ignored actual spending. When revenues exceed the expenditures, you are building reserves. In this example, FCBOE is cutting school staff while choosing to put Fayette taxpayer money in the bank.
He is correct that FCBOE has not had to use a tax anticipation note (TAN) in a few years. This is a form of short-term financing to operate while taxes are collected. My understanding is that FCBOE will be obtaining a TAN this fall.
Last, I am troubled that Mr. Rabold focused on the GHSA implications of my article regarding sports coaches while failing to be mindful of the point. To be clear, I was asking how we can have great coaches while also making sure we hire great teachers. I had privately made him aware of a situation regarding one of our teachers who was reduced in the latest downsizing.
I was glad to hear that everyone who wanted a job was offered one. However, one teacher was made a floating sub. Subsequently she became aware of a position that became available in one of our schools due to a resignation. She was told that position was getting posted to the street as that school required a coach.
Later that same week, McIntosh released their baseball and softball coaches from their coaching positions, although they were welcome to stay as teachers.
The question I asked Mr. Rabold was how could we cut seventy school-based positions, yet go over headcount compliment to hire coaches while keeping the former coaches as teachers? My suggestions were in attempt to brainstorm a way out of the world where we incurred additional expenses for coaching headcount but not math (or other applicable subject) headcount.
Again using Mr. Rabold’s $117,000 per teacher headcount. Three teacher overflow would come to $351,000. Interestingly, this is approximately the cost of interest avoided in his cash management example above.
End of the day, reasonable people can disagree, with that difference of opinions serving as a vehicle for finding common ground and better solutions.
Mr. Rabold points to lack of public participation in the annual budget process. My columns and letters before are participation, just not in the way he wants.
My articles are partially driven by reader comments in the blogs or other methods as I have heard from our readers by email ([email protected]), Facebook, Twitter, Instagram, LinkedIn, and even a note or two left in my mailbox.
Even though Mr. Rabold is right and we did move to Cresswind Springhaven in East Newnan a couple of weeks ago, I still plan on writing on school issues for not only Fayette, but also Coweta, Clayton, and our great local private schools such as Trinity, Landmark, Heritage, Central, and other schools.
I look forward to your continued interaction as we all seek ways to find great educational options for all of our area’s children.
[Neil Sullivan is a finance/accounting executive and CPA. He has lived in Peachtree City over 20 years with his wife Jennifer, a Fayette County History teacher and son Jackson, a student at Erskine College. He has been active in public school related issues in Fayette County, leading three E-SPLOST initiatives as chairman of Fayette Citizens for Children. He has appeared previously on these pages in letters to the editor.]
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