News Release
For Immediate Release – December 18, 1998
Contact: James C. Brandt, President & CEO
(504) 525-4152, ext. 12 or Pager (504) 538-0641Fiscal Outlook for the New Orleans Public Schools Is Bleak
With little or no growth expected in local, state and federal revenues over the next several years, the Orleans Parish School Board faces the challenge of markedly improving school performance with what will likely be a series of stand-still budgets. This discouraging fiscal outlook for New Orleans Public Schools was contained in a report released today by the Bureau of Governmental Research (BGR). BGR’s report presents an overview of the School Board’s fiscal condition, with a specific focus on the Fiscal Year 1999 operating budget.
"There’s no question about it. The Orleans Parish School Board is going to face some very tough budget decisions in the years ahead. Improving school performance with limited revenues is going to be a difficult task," according to Jim Brandt, President of BGR.
To meet the severe fiscal challenges, BGR’s report suggests that the Orleans Parish School Board should overhaul its information management functions, improve its business operations, and link management to classroom performance. According to BGR, hiring a strong superintendent and filling long-standing vacancies in critical management positions are the first steps needed.
While the overall fiscal outlook for the New Orleans public schools is gloomy, with the average per pupil expenditure well below the national average ($4,800 in New Orleans vs. $6,060 for the nation), BGR’s report notes there are at least some short term positive signs. These include:
Unlike the City of New Orleans which will have no operating fund balance at the end of 1998, the Orleans Parish School Board began Fiscal year 1999 with a positive fund balance of approximately $17 million, about four percent of the operating budget. Conservative budget management including realistic revenue projections contributed to the fund balance.
Funding for a new and long-needed information system for the school system is in place, and significant progress can be reported in implementing the system.
The school system will benefit this year from a $6 million windfall. Funds set aside for debt service were freed due to lower-than-expected interest rates and were allocated to the FOCUS schools program, capital projects and badly-needed bathroom maintenance.
"While there are some immediate positives, the long term capital needs and classroom-related improvements are enormous and well beyond the Board’s present financial resources, "according to Brandt. "The School Board needs to develop a plan for meeting nearly $400 million in targeted capital and classroom needs," he added.
BGR is a private, nonpartisan, nonprofit, citizen-supported research organization dedicated to informed public policy-making and the effective use of public resources in the New Orleans metropolitan area.
Copies of the report may be obtained by calling 525-4152 or by visiting BGR’s website at www.bgr.org.u
Follow this link to the full report Outlook
BGR assumes no responsibility for content outside the domain bgr.org.