Fulton County Schools Superintendent spoke exclusively to Channel 2 Action News about the future financial challenges the district is facing and possible revenue solutions.
“We are on a collision course with insolvency unless we cut expenses, raise revenue, or some combination of both,” Dr. Mike Looney said.
That was the message the superintendent delivered to the Fulton County School board last week, as he says the district faces challenging budget years in the near future.
“We are currently spending more money than we’re taking in. And in the long run, that’s not a viable solution,” Looney told Channel 2 Action News in an exclusive interview Tuesday.
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Next year’s budget will dip approximately $80-$90 million into the system’s savings account. Looney says the system has more than $300 million in that fund, but it will only last so long.
He says it’s a combination of issues facing the district. First, the school district deals with the rising costs of personnel and property, that has increased sharply since the pandemic.
At the same time, enrollment is down approximately 6,900 students since 2019, leading to a drop in revenue.
“We have to either reduce expenses, increase revenue, or some combination thereof based on what we know today in order to keep this district financially stable moving forward,” Looney said.
This year, the school board voted to close Parklane Elementary and Spalding Drive Elementary. However, Looney indicated more closures may be needed.
“I would be remiss if I didn’t say that I do expect additional closings to be a part,” Dr. Looney said.
Channel 2 Action News also asked Looney if he expected there to be layoffs to save money.
“I do not expect layoffs. Every year we have transitions, people retire, and so I do expect our workforce to shrink over time, but I don’t think there’s going to be an effort to lay people off or pink-slip people, it will be just through a natural attrition process,” Looney said.
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The other part of the process will be raising revenue. Looney says they will explore options such as going to the state legislature before looking at taxes.
“Our board is committed to making sure that we are using our resources right now effectively and efficiently, prior to a conversation about taxes,” Looney said.
“This is gonna happen all over the state in the next five to 10 years because of, like you said, the declining enrollment,” KSU Economics Professor Ben Scafidi said.
Scafidi says demographics and competition from private schools and homeschooling have led to the declining enrollment, and districts all over the state will likely face tough financial choices in the next few years.
“Public school districts are going to have to make sound financial decisions, maybe in ways they haven’t done in the past,” Scafidi said.
For Fulton County Schools, Looney says they are looking at steps to cut costs and raise revenue now, but hard choices are coming.
“I want our public to know that we’re being proactive, not reactive, and at the same time, we’re being transparent with the challenges that we face,” he said.
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