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 Tuesday, 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 from the continuing economic woes.
"It's ugly," Neter said after the presentation. "It's going to get worse before it gets better."
Neter warned that the biggest hole comes from the loss of $89 million in federal stimulus money next year. That amount includes $41million in stimulus money that the state used to pay for nonteaching positions, including all of the Wake schools' custodians and 60percent of the clerical staff.
School districts across the country are facing layoffs next year when the federal money runs out.
Neter warned that Wake could lose millions more because the state expects a $3billion revenue shortfall next year.
Neter said Wake will get some benefit from the state winning $400 million from the federal Race to the Top education grant and from the district's $27.7 million share of a recently passed federal bill to save school jobs.
But, Neter warned, cuts will still need to be made next year. He's not counting on getting more money from the county next year, even though there are projected to be 3,800 new students and the opening of new schools.
Wake has already had to make cuts that cost jobs, increased class sizes and trimmed the number of electives and advanced classes.
