Budget Outlook - North Carolina's Public Schools
March 1, 2010
For an overview of current revenue collections and forecasts, please visit the General Fund
Revenue & Economic Outlook at the following link (prepared by the Fiscal Research Division
of the North Carolina General Assembly):
http://www.ncleg.net/fiscalresearch/generalfund_outlook/generalfund_outlook.shtml
Review Current Year - FY 2009-10
Recurring Cuts:
Negative Reserve
Other Recurring
Non-Recurring Cuts:
Textbooks
Noninstructional Support
Other Non-recurring
$225.0
105.4
$ 330.4
$
$
48.0
379.6
22.2
449.8
Cuts in Budget for FY 2010-11:
Additional Recurring
Negative Reserve (+35.4%)
Other Recurring *
Non-Recurring Cuts:
Textbooks
Noninstructional Support
Other Non-recurring
Increase
Total
$79.8 $ 304.8
40.2
145.6
$ 120.0 $ 450.4
$
$
67.4 $
(6.3)
(0.6)
60.5 $
115.4
373.3
21.6
510.3
* driver training ($33.3 m) not in FY 2010-11 Budget
Total Cut (9.5%)
$
Federal Recovery (ARRA):
Stabilization
$
ESEA Title I (27 months)
IDEA VI-B (27 months)
Total
$
780.2
Total Cut (12%)
379.6
247.1
314.4
941.1
Federal Recovery (ARRA):
Stabilization
ESEA Title I
IDEA VI-B
Total
Retirement Rate 8.75%
Hospitalization Cost $4,527
$
180.5
$
960.7
$
373.3
0
0
373.3
carryover
carryover
$
Scheduled Retirement Rate 10.510%
Scheduled Hospitalization Cost $4,929
Budget Forecast for FY 2010-11:
At the end of December, the total revenue collection was $35 million below the target. This
shortage was minimized due to some one-time revenue collections. The collections are
projected to continue to lag behind forecasted levels and the deficit could reach $500 million.
The budget for FY 2010-11 was built on a 3.2% projected growth. We should anticipate a
revised growth percentage (which will be based on a lower actual collection). This revised
percentage will create a budget hole for FY 2010-11 which will need to be corrected through
additional revenue or additional reductions.
For FY 2010-11's budget, the Office of State Budget and Management has requested
additional possible reductions of 3% for the Public Schools ($214 million).
Note: In FY 2011-12, the current federal ARRA funding will not exist. Public schools will be
facing a budget hole that will exceed $1 billion.
North Carolina Department of Public Instruction/Financial and Business Services