BEVERLY — The School Department might need to lay off teachers in the middle of the school year due to a school budget deficit that has reached more than $400,000, Superintendent Marie Galinski said yesterday.
Galinski plans to appear before the City Council on Jan. 18 to explain the deficit and advise councilors that the School Committee might ask the city for more money before the end of the school year.
"We have limited places to go because we've made so many cuts in the past," Galinski said. "We're looking at a $400,000-plus deficit right now, and it's January."
Galinski said the deficit is the result of unexpected special education costs, rising unemployment costs caused by recent school layoffs, and a reduction in school choice revenue, all combined with a cut in state aid.
To deal with the shortfall, Galinski said the School Committee's options are to use money from the buildings and grounds budget, lay off staff before the end of the school year, or ask the City Council for more money.
"We're not asking for it right now," Galinski said. "We just want to say to them that we might need to do that, so there's no surprises."
School Committee President Annemarie Cesa said the School Department has been under a budget freeze since October. Principals cannot buy anything for their schools unless it's cleared by the superintendent or school business manager, she said.
"If they go to buy paper, it needs to be approved," Cesa said.
Word of problems in the school budget first came to light in December, when special education services administrator Debra O'Connor told a joint meeting of the City Council and School Committee about the unexpected special education costs.
O'Connor said 16 students are receiving special education services the district hadn't planned on, at a cost of $631,459.
The state once reimbursed 75 percent of special education costs. That number is down to 38 percent, Cesa said. Beverly's special education budget is running a $200,000 deficit with six months to go in the school year, according to Galinski.
Galinski said the district is also paying twice as much in unemployment costs as it did last year due to the number of school employees who have been laid off or had their hours cut.
Laid-off workers are allowed to collect unemployment for 99 weeks, Galinski said.
"It used to be we could lay them off, and the health insurance (savings) and unemployment (costs) would balance each other out," she said. "That's not the case anymore."
The unemployment costs are on pace to run a $100,000 deficit, Galinski said.
The third problem area is school choice, the program that allows public school students to attend schools outside of their district, with the host school getting state money for each incoming student. Galinski said school choice revenues are down $115,000 from last year.
Beverly has had to refuse students who want to attend its schools, especially the high school, due to lack of space, Galinski said. She said there are 1,277 students in the high school, which was built for 1,200.
"We're maxed out," she said.
Students moved into a new four-story academic wing in November. Galinski said the same space limitation existed in the old high school.
Cesa said the School Committee tracks the budget very closely, but the numbers that have caused the deficit were unpredictable.
"Every bill paid by the School Department is reviewed by three School Committee members, plus the mayor, plus the business manager," Cesa said. "You base your budget on what you think are strong numbers but find out that's not what you're going to get. We have a problem, and it's not because we've mismanaged our budget. It's because of unanticipated costs."
Staff writer Paul Leighton can be reached at 978-338-2675 or by e-mail at pleighton@salem news.com.
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