Wake schools might see cuts, could lose $100M in funding

RALEIGH -- Wake County school leaders face the potential loss of more than $100 million in state and federal funding next year, including all the money for custodians and a majority of the money for clerical staff.

During a budget briefing today, David Neter, the school system’s chief business officer, warned school board members that cuts will be needed next year because of the loss of money because of the continuing economic woes.

Neter warned that the biggest hole comes from the loss of $89 million in federal stimulus money next year. That amount includes $41 million in stimulus money that the state used to pay for non-teaching positions, including all of Wake’s custodians and 60 percent of the clerical staff.

School districts all across the country are facing layoffs next year when the stimulus money runs out.

Neter also warned that Wake could lose millions more with the state facing a $3 billion revenue shortfall next year.

Neter said Wake will get some benefit from the state winning $400 million from the federal Race to the Top and from the district’s $27.7 million share of a recently passed federal bill to save schools job.

But, Neter warned, cuts will still need to be made next year as the district also deals with 3,800 new students and the opening of new schools. He said they’re expecting not to get more money from the county next year, which will require cuts to deal with growth.