CMS budget: How bad will it be?

Tuesday night's launch of 2010-11 budget talks has taxpayers and Charlotte-Mecklenburg Schools employees buzzing. Superintendent Peter Gorman e-mailed a copy of his "It's not pretty" remarks to the district's work force Tuesday, and he's working on a follow-up today. Bottom line: No one knows yet how much state and county money will come through, but Gorman says it's foolish not to prepare for cuts.

Tuesday's e-mail is below. Those who want more details can also see Chief Financial Officer Sheila Shirley's report to the board, a consultant's proposals for possible teacher cuts and video of the board meeting at this link. (see links to "budget preview presentation" and "analysis from ERS").

From: cmscommunications
Sent: Tuesday, January 12, 2010 4:30 PM
To: cmsmailall
Subject: From Peter C. Gorman: Budget 2010-11

Dear CMS employees:

Tonight we are opening our discussions with our Board about the 2010-2011 budget. As all of you know, the CMS budget is a process and not a short or easy one. This year it’s likely to be even longer and more difficult than usual, I’m sorry to say.

Tonight’s meeting is intended to give our Board some context for the first budget workshop, which is set for the end of this month – January 25.

The executive staff and I have been meeting with Education Resource Strategies for more than a year. ERS specializes in helping districts make sure that district spending aligns with district priorities, and that’s what we’ve been working on. The ERS work is helping us make intentional, careful decisions about our priorities and our spending.

It is so early in the budget process that we don’t have any specific funding amounts from either the state or the county, our two biggest funding sources. But we have some early indicators of what’s coming. I can summarize it for you in three words. It’s not pretty.

On the state side, there are already indications that money will be very tight. Perhaps even tighter than last year. Philip Price, chief financial officer for the Department of Public Instruction, told the Charlotte Observer over the weekend that more cuts seem likely this year. The state budget office has asked DPI for a variety of budget scenarios – a little bit like the tiers we used in planning this year’s budget. The request is for one scenario with a three percent increase and then three scenarios with decreases of three, five and seven percent. And Bill Harrison, the chairman of the state board of education, told the Observer that “The options are not good.”

You don’t have to be a political pundit to conclude that if three out of four scenarios involve cuts, then cuts are the most likely option. What we don’t know, and what we won’t know for some time, is how much we’ll have to cut and if it will be as large as last year, when we had to cut $87 million from our budget. But based on the early indicators, it is likely that there will be reductions in our state funding this year.

On the local front, we have even less information. But again, the information we have is that money will be tight. As we begin to build our budget and decide how much local funding to request, I have asked our Board to keep a few things in mind.

First, we took the biggest cut in local funding in the state last year – $34 million. That reduction was more than ten times the next biggest local cut in North Carolina, which was the $3 million reduction in Wake County. So we had a very large reduction last year.

Second, we have not had any kind of fiscal irregularity. Our budget is transparent from start to finish, and we have used the money we were given in exactly the way we said we would. CMS has had no cost overruns or emergency requests –this despite the fact that we had to make several hastily announced reversions, state and local, last year. That is a tribute to the outstanding work of Sheila Shirley and the financial staff. In a year marked by widespread financial uncertainties, Sheila and her staff have made sure that CMS finances are managed carefully and well. We are fortunate to have her financial leadership and expertise in our district.
We are also fortunate that all of you, our employees, have been able to do more with less this year. Our progress as a district has been substantial, thanks to your dedication and commitment. Thank you.

On the federal level, we are supporting the state application for Race to the Top funds. Although the national amount is very large, four billion dollars for education, the amount we’re likely to receive should North Carolina be successful is a tiny fraction of that. We estimate it will be $4 million or so. We all need to be clear about the role of this money, however. It will help us pursue some of the innovative measures in our Strategic Plan 2014. But it is not going to shield us in any way from state and local cuts, and it is not intended to be a stopgap for shortfalls in our normal funding.

It’s also important to keep in mind that we have a funding cliff after next year, when the federal stimulus money to the state stops. For CMS, that funding cliff is about $47 million – and that means that this coming year is not the end of our budget difficulties. We have a significant funding cliff on the horizon for the 2011-2012 budget.

Finally, I have asked our Board to keep in mind the mission of Charlotte-Mecklenburg Schools. We’re a public school district funded with public money and open to any child in Mecklenburg County. We educate this community’s children. It is also our responsibility to be advocates for children. Our citizens want Charlotte-Mecklenburg Schools to educate their children comprehensively and competitively. This community has a longstanding commitment to funding education.

The budget shortfalls of the present are a reality. But I do not believe they have diminished in any way this community’s commitment to providing the best public education possible for its children.

I hope that this year we will not have the pain of a budget with disproportionate cuts that fall most heavily on children and schools. But whatever comes our way, you can count on two things: We’ll tell you about it as it develops, using staff emails on a regular basis the way we did last year. And we’ll remain focused on our most important job, educating children, just as we did last year.

Pete

Conan O'Brien has a statement for the people of Earth

Conan O’Brien said Tuesday he won’t move his “Tonight Show” back a half-hour to accommodate NBC executives’ plan to move Jay Leno out of prime time, forcing the network to choose between the two late-night performers.

O'Brien issued this statement:

People of Earth:

In the last few days, I've been getting a lot of sympathy calls, and I want to start by making it clear that no one should waste a second feeling sorry for me. For 17 years, I've been getting paid to do what I love most and, in a world with real problems, I've been absurdly lucky. That said, I've been suddenly put in a very public predicament and my bosses are demanding an immediate decision.

Six years ago, I signed a contract with NBC to take over The Tonight Show in June of 2009. Like a lot of us, I grew up watching Johnny Carson every night and the chance to one day sit in that chair has meant everything to me. I worked long and hard to get that opportunity, passed up far more lucrative offers, and since 2004 I have spent literally hundreds of hours thinking of ways to extend the franchise long into the future. It was my mistaken belief that, like my predecessor, I would have the benefit of some time and, just as important, some degree of ratings support from the prime-time schedule. Building a lasting audience at 11:30 is impossible without both.

But sadly, we were never given that chance. After only seven months, with my Tonight Show in its infancy, NBC has decided to react to their terrible difficulties in prime-time by making a change in their long-established late night schedule.

Last Thursday, NBC executives told me they intended to move the Tonight Show to 12:05 to accommodate the Jay Leno Show at 11:35. For 60 years the Tonight Show has aired immediately following the late local news. I sincerely believe that delaying the Tonight Show into the next day to accommodate another comedy program will seriously damage what I consider to be the greatest franchise in the history of broadcasting. The Tonight Show at 12:05 simply isn't the Tonight Show. Also, if I accept this move I will be knocking the Late Night show, which I inherited from David Letterman and passed on to Jimmy Fallon, out of its long-held time slot. That would hurt the other NBC franchise that I love, and it would be unfair to Jimmy.

So it has come to this: I cannot express in words how much I enjoy hosting this program and what an enormous personal disappointment it is for me to consider losing it. My staff and I have worked unbelievably hard and we are very proud of our contribution to the legacy of The Tonight Show. But I cannot participate in what I honestly believe is its destruction. Some people will make the argument that with DVRs and the Internet a time slot doesn't matter. But with the Tonight Show, I believe nothing could matter more.

There has been speculation about my going to another network but, to set the record straight, I currently have no other offer and honestly have no idea what happens next. My hope is that NBC and I can resolve this quickly so that my staff, crew, and I can do a show we can be proud of, for a company that values our work.

Have a great day and, for the record, I am truly sorry about my hair; it's always been that way.

Yours,

Conan

Federal indictment: A look at MS-13 gang

Security is extremely tight this morning at the federal courthouse in Charlotte's uptown, for the start of the trial of several members of the MS-13 gang.

Here is the federal indictment, filed June 23, 2008.

Read the indictment (.pdf)

In its 86 pages, the indictment details charges against  26 men arrested during a crackdown on MS-13.

Among the allegations: "At all times relevant to this indictment, members of MS-13 engaged in criminal activity including drug distribution, murders, assaults, robberies, and obstructing justice in the form of threatening and intimidating witnesses ..."

- David Enna

Spangler letter: No UNCC football

Former UNC-system President C.D. Spangler, Jr. wants system leaders to say no to a proposed student fee increase to help UNC Charlotte start a football team.

In a letter sent to the system's Board of Governors, Spangler, a Charlotte businessman, recalled the state statute that says the university system should be "free of expense, as far as practical"

"This provision seems to be straight forward: The great benefits of the University should be extended as low cost to the students as is reasonable," Spangler wrote in his letter. "There is no way our founding fathers could have written this thinking the Football Fees being proposed by the "Football Committee" made sense."

Click here to read the letter.


UNC Charlotte trustees last month backed a fee plan that, if approved by the BOG, would gradually increase student fees by up to $320 in fall 2014 to launch a football team. That includes a $120 debt service fee to pay for building a football stadium.

BOG members discussed the proposed fees on Thursday in Chapel Hill, and will vote on tuition and fee packages for all system schools next month.

Spangler wrote he thinks the proposed football fees would be a roadblock to families who want to attend the university. He said football committee members "are more familiar with (country) club dues than they are with the financial condition of the students at our more than 300 public high schools."

Spangler's letter questions whether there was broad support among students for football, and states that less than 10 percent of the student body "voted for an imprecisely worded football activity."

It is unclear what study Spangler is referencing. However, in 2007, about 39 percent of university students took part in a special poll by the Student Government Association. Of those, 78 percent indicated they would support a fee increase to help pay for football.

Spangler has voiced his concerns about the football program before. In February 2008, he and another former UNC system President, William Friday, spoke on the topic with faculty at UNC Charlotte. Friday also was a founding co-chairman of the Knight Commission for Intercollegiate Athletics.

UNC Charlotte has posted video of the Spangler and Friday remarks, as well as remarks and reports from Chancellor Phil Dubois and a football feasibility committee who recommended football on its web site. View those materials by clicking here.

- April Bethea

Police: Chris Henry investigation 'complete'

Here is the statement released by Charlotte-Mecklenburg police today in the Chris Henry investigation:

Investigation into the death of Chris Henry complete January 6, 2010


Detectives with the Charlotte-Mecklenburg Police Department Homicide Unit along with the Highway Interdiction and Traffic Safety Unit (H.I.T.S.) have completed their investigation into the death of Mr. Chris Henry.

The H.I.T.S. Accident Reconstruction Unit determined that there was no evidence of reckless driving or excessive speed by Ms. Tonga. The speed limit on Oakdale Road is 35 mph and the estimated speed at the time of accident was between 19-23 mph.

Homicide Detectives interviewed Ms. Tonga who was cooperative throughout the duration of the investigation. Her statement was consistent with witness accounts; however, there were no witnesses that actually saw how Mr. Henry came out of the back of the truck. Homicide Detectives obtained a witness statement that indicated that there was a verbal altercation that took place at the residence where Mr. Henry jumped in the back of the truck and began beating on the back of the vehicle when Ms. Tonga drove away from the residence.

The Medical Examiner ruled the death of Mr. Chris Henry accidental with the cause of death being blunt force trauma to the head from a fall. Ms. Tonga will not be charged in connection with Mr. Henry’s death.

- Doug Miller

Roberts: James' comments 'unbecoming'

Mecklenburg County commissioners Chair Jennifer Roberts (pictured at right) urged the board Tuesday to be more civil in their discussions during the upcoming year, while admonishing one board member for remarks she deemed "callous, hurtful and unnecessary."

While Roberts did not name the commissioner by name, her talk appeared to be clearly aimed at commissioner Bill James, who drew criticism for a brief exchange with commissioner Vilma Leake during a Dec. 15 discussion on domestic partner benefits. Read more about that here.

Below is the full text of Roberts' prepared remarks, which she asked clerk Janice Paige to enter into the minutes of the meeting.

"This Board did not end its work very gracefully in 2009. I do not want to make a political statement by calling for a vote to censure a specific commissioner. The sad truth of our society is that many believe that because of the First Amendment, they have a right to say prejudiced and hateful things, anywhere they want, without apology.

But the behavior displayed on December 15, 2009, was unbecoming of an elected representative and leader of the people of Mecklenburg County. As was made clear in the reaction, it was callous, hurtful, and unnecessary.

I will use this as an opportunity to remind my fellow Board members that our conversation in public, whether before the cameras in our public meetings or in our public emails, goes beyond the principles of the First Amendment. There are certain words which are known to be inflammatory, hateful, bullying, and provocative, and they include terms we all recognize (the N word for African American, the B word for women, and the H word for gays and homosexuals). These names have no place in civil discourse.

Every commissioner on this board has a right to voice their views, and those views may be widely divergent from each other. However, I urge my colleagues to seek to hold our discourse to the principles of civility, human decency, and mutual respect, and that the use of slurs, inflammatory language, curses, name calling, etc. represents behavior unbecoming of a member serving on this board, here in the most populous county in the great state of North Carolina. Words matter and attitudes matter, and I expect each member of this board to respect the worth and dignity of every other member and of every citizen who appears before us or who voices their concerns by letter or email. Each of us has been duly elected to serve selflessly the citizens of this county, and in a democracy there is no greater responsibility than this.

I have high hopes for 2010. I believe that our economy has turned the corner, and that together we as a Board can meet the budgetary and policy challenges ahead with collaboration, innovation, integrity, inclusion, hard work and at times, useful disagreement. But disagreement for the sake of demeaning ones opponent is not useful. As your Chairman for 2010, I will fulfill my duty to shepherd our discussions toward substantive debate to pursue policies and initiatives that are in the best interests of all our citizens, regardless of gender, race, religion, sexual orientation, socio-economic status, ethnicity, or age. By practicing mutual respect and civil discourse among ourselves, we can forge a path forward to a realization that we are one community, bound by a common destiny, and we will succeed or fail together. We look forward to a peaceful, prosperous, and productive 2010." -- Jennifer Roberts, chairman, Mecklenburg Board of County Commissioners

4 bottles Dom Perignon: $1,000

A liquor company also bought Mecklenburg County ABC Board members 14 ounce lobsters, 22 ounce ribeyes, $599 worth of high-end Don Julio tequila and $1,080 of red wine.

State agents released a 39-page document today as part of an investigation that found the board and liquor company Diageo broke state alcohol laws at a November dinner.

Click here to read the report. (To see the dinner tab, go to page 35)

The agents' report also details several other dinners and lunches for Mecklenburg board members or employees that were paid for by liquor companies. Board Chair Parks Helms and CEO Calvin McDougal went to lunch at the Ritz Carlton the day before the Nov. 18 dinner at Del Frisco's steakhouse.

- Mark Johnson, Doug Miller