Education may be target of new cuts

Layoffs, school consolidations and program cuts could be on the table for Lawrence schools if Gov. Bill Graves cuts education spending next week.

âÂÂWhat was previously unthinkable is now thinkable,â said Scott Morgan, school board president.

Kansas University officials also are bracing for potential cuts and layoffs.

Graves said Wednesday that he would make a second round of budget cuts next week to help close a projected $310 million deficit. He would not say whether the cuts would include public or higher education. His silence on those specifics leaves school and university officials in budget limbo.

âÂÂIâÂÂm still weighing whether to spread the pain around completely or try to isolate it,â Graves told reporters. âÂÂMaking the amount of reductions significant is much easier to do if youâÂÂve got K-12 and higher ed on the table.âÂÂ

In August, Graves cut the budget by $41 million as state revenues continued to fall below expectations. Those cuts, along with $252 million in new revenues approved by the 2002 Legislature, were intended to bring the state budget into balance June 30, 2003, the end of the current fiscal year.

Promises, reality

But the total shortfall has continued to increase, according to estimates by state officials and economists, and now is at least $310 million. Budget officials have said the gap swells to more than $1 billion when fiscal 2004 budget estimates are included.

Graves, who leaves office Jan. 13, has been meeting with his staff and Gov.-elect Kathleen Sebelius to make additional cuts. As part of her campaign, Sebelius promised to hold public schools harmless from cuts.

But the public school budget is $2.3 billion, or more than 52 percent of the stateâÂÂs expenditures. That leaves little room to close the budget gap without greatly reducing expenditures of remaining agencies.

In July, the Lawrence school board adopted $3 million in spending cuts and fee increases to balance its current budget.

Gravesâ cuts in August triggered a hiring freeze on all nonteaching jobs in the Lawrence district. The board also borrowed $300,000 from its contingency fund and made other moves to eliminate a $664,000 deficit caused by falling enrollment in the district and Gravesâ decision to slash school funding.

Morgan said layoffs, program cuts and school consolidation in the Lawrence district could be required depending on how deep the governor was willing to cut education.

Student fees wonâÂÂt increase, he said.

âÂÂWeâÂÂre certainly not going to raise them more,â Morgan said. âÂÂItâÂÂs all going to be in cuts.âÂÂ

The possibility of a second round of state financing cuts has been hanging over districts like a dark cloud for months.

âÂÂOminous is the word IâÂÂd use,â Morgan said. âÂÂWeâÂÂve been trying to say, without playing Chicken Little, that there is trouble coming, and this is the shape itâÂÂs going to take. None of it is going to be good.âÂÂ

KU layoffs possible

Janet Murguia, executive vice chancellor for university relations, said KU officialsâ sentiments were similar to MorganâÂÂs.

Murguia said more layoffs or program cuts could be required at KU. So far, KU has laid off 44 employees and cut 115 vacant positions this year. It also has cut a section of the Kansas Geological Survey and closed to the public the Museum of Anthropology.

âÂÂRight now, I donâÂÂt think thereâÂÂs anything off the table,â Murguia said.

In August, Graves cut KUâÂÂs budget by $1.2 million. That came on top of a $7.4 million decline from last yearâÂÂs budget.

Murguia said top KU officials had been meeting with deans and department heads to determine more potential cuts.

âÂÂItâÂÂs getting more difficult to find any easy cost-saving measures,â she said. âÂÂWeâÂÂre anxious to see what the governor will announce.âÂÂ

Graves and Sebelius met last weekend to discuss the budget and cuts as they traveled to a National Governors Assn. conference for new governors. But Graves said Wednesday that he would be alone at the microphone when the next round of cuts was announced.

As part of her transition, Sebelius created teams to conduct a top-to-bottom review of state government, searching for areas to improve efficiencies. Those findings are expected to be included in part in her budget proposal to legislators after she takes office.

Sebelius has until Feb. 3 to submit her budget proposals to the 2003 Legislature. That package must include a proposed budget for fiscal 2004 and a revised budget for fiscal 2003.

In the past, incoming governors have dealt with current fiscal problems. For example, in 1987, incoming Gov. Mike Hayden had proposals to cut $60 million from the current budget ready for legislators to approve their first week of the session.