By Michaela Gibson Morris

Daily Journal

School superintendents are optimistic that federal stimulus money will plug holes in district budgets, but they are proceeding cautiously.

“Basically, we’re still waiting on directions from the federal government,” said Tupelo Schools Superintendent Randy McCoy.

State Superintendent Hank Bounds held meetings last week with district superintendents and board members from around the state.

“Bounds is confident that MAEP will be fully funded for next year, and the budget cuts will be restored,” said Lee County Schools Superintendent Mike Scott. “We’re not going to RIF (reduce in force) any personnel.”

Superintendents for districts in Amory, New Albany, Tupelo and Lee County said layoffs aren’t in the cards, but some districts are holding off on the formal steps for retaining teachers for the 2009-2010 school year.

“We’ll replace what we’re losing” to retirements and resignations, said Amory Schools Superintendent Jim Sappington. “The vast majority of the stimulus money is designated for restoring cuts to budgets we experienced earlier this year.”

Because the state Legislature adjourned without a budget, the April 15 deadlines for recommending re-employment became a moot point. Now the state-required deadline is within 10 days of the budget being approved by the governor.

Amory School District has formally recommended teachers for re-employment. Lee County and New Albany districts have informally told teachers they will be maintaining staffing levels.

“That’s so we don’t have to go back and redo contracts,” Scott said. “We don’t know if the raises that went into effect this year for teachers with more than 25 years will be funded.”

The New Albany district is taking a wait-and-see approach to making the formal recommendations, Garrett said. The board can act quickly, if necessary.

“We don’t anticipate reducing our staff for budget reasons,” said New Albany Superintendent Chuck Garrett. “We’ve made a commitment to maintain our staff levels. … So far, in our district, it’s not an issue.”

In Tupelo

Last week, McCoy laid out options for the Tupelo Public School District Board of Trustees.

The board can wait until the timeline for receiving federal stimulus money is clearer, or it can issue the recommendations for employment with the provision that contracts will come when the budget appropriations are made, McCoy said.

The district has long planned to hire 22 additional teachers to achieve a 15-1 ratio in second and third grades, and built up the budget for the additional positions over the past few years.

If the hiring recommendations are delayed, McCoy told the board, “the risk is losing teachers to competition.”

On the other hand, the district could be in trouble if the money doesn’t arrive before the start of the school’s fiscal year in July.

Based on the budget reductions the district had to make earlier this year, McCoy said, “we’re going to have to find $735,000 in cuts unless the money comes in.”

McCoy, who is retiring at the end of June, said he will be coordinating budget decisions with incoming superintendent Randy Shaver.

“I won’t ask you to make a commitment that I haven’t discussed with him,” McCoy told the board.

Long-term outlook

Superintendents are concerned about the long-term outlook as well as next year.

“This is one-time money spread over one or two years,” McCoy said.

Local, state and federal revenues may not have rebounded completely before the stimulus money is gone.

“We’re certainly headed for a deficit unless there’s something to spark the state economy,” Sappington said.

Lee County Schools likely will use the extra money for federal programs and special ed for technology and training, Scott said.

“You can’t dedicate it to salaries because it’s not predictable,” Scott said.

The district may lose some part-time special education assistants because of that unpredictability.

“The funding is not going to be there for that,” Scott said.

Because of years of cautious planning by their predecessors, the superintendents said their districts can weather a bad year or two.

“We’re just like everybody else,” Scott said. “We’re pulling for the economy.”

Contact Michaela Gibson Morris at (662) 678-1599 or michaela.morris@djournal.com.