The school system took a big hit in the finances when state officials discovered a mistake they had made. According to Director of Schools James Jones, the $989,000 in BEP growth money this year turned out to be $80,000. He learned this at the end of the school year, after he had already spent the first half of the money, which was sent in February.

Making matters worse, he was told that the money sent in error has to be paid back.

Jones received a letter from Wesley Robertson, Executive Director of Local Finance for the state Department of Education in January advising him that estimated growth funding had been calculated for the year, based on attendance figures submitted on the Department’s website. Based on projections, the letter said, Polk County would receive $989,000 in additional funds this year, with the first payment of $494,500 to be sent at the end of January.

Jones said he immediately questioned the figure, calling the state to advise that the county normally receives around $50,000 in growth money. He said he was told the figure is correct, that the BEP is now fully funded so it is a lot more than normal. Jones said he talked to Robertson, saying he did not want to spend the money if it is too much and was told to spend it. He then asked Attendance Supervisor Laura Barnett and Budget Director Treva Hyatt to double check and they, too, were told the figure was accurate.

Jones submitted a budget amendment spending the funds, which included a pay raise for teachers and non-certified employees and additional money for fuel, among other things. At the time, he said he was delighted with the extra money to take care of needs in the school system.

At the end of the school year, Jones called to find out when he would be receiving the second half of the growth money and was told there had been a miscalculation. Not only would the second payment not be coming, he would have to return the first half, other than the actual growth money of around $80,000. Apparently there was some type of computer glitch in calculating the new formula to determine payments for special education and vocational students, he said. Jones said Polk was one of around 20 counties to be given credit for too many students. He said there is a new system in place to make sure it doesn’t happen again, adding the state did everything it could to help but just could not ignore the overpayment. Robert Green with Local Finance for the state Department of Education, said he did not know about a computer problem. He said all they can do is provide funding based on the number they are given by the school systems.

The only good thing, Jones said, is that the state will allow the school system to pay back the money over several years. Luckily, he said, he had not spent the second half of the growth fund. He said he had begun working on next year’s budget before getting the bad news, noting it was shaping up to be a dream budget with the additional funds. Then he had to go back to square one and face the impact of the February changes. Some of that money was for recurring expenses, such as pay raises. Those expenses will remain in next year’s budget even though the money is no longer there to cover them -- not to mention the loss of more than $100,000/year to return the overpayment.

As a result, Jones said, some cuts had to be made in this next year’s budget so they could cover the new expenses as well as the normal growth in costs. The $60,000 for School Resource Officers was dropped; Attendance/Technology Supervisor Laura Barnett was covered by a grant; a custodian was dropped at Copper Basin High School, South Polk, and Copper Basin Elementary; David Cook, who has been serving in an interim position at a reduced salary because he is retired, will be paid as a new teacher; and Joan Hammons was moved from the Chilhowee library -- either to an English position or a BEP 2.0 position (separate pot of money for academic enhancements) -- with an aide to serve as librarian. The BEP 2.0 money will remain next year so the system can continue with special projects to help student achievement. Jones said this was the best year for test scores.

Jones said he will not be able to create a new position at the Central Office as planned to help meet the growing workload for supervisors, noting he could not do that while having to cut other positions. He did follow through with the plan to create a physical education position at Copper Basin High School, which will be filled by Todd Rollins, who was moved from the elementary school after parental concerns.

There will be a new Assistant Principal at Polk County High School next year. Jones said he moved Mark Pickel to a social studies position at Copper Basin High School but did not elaborate on the reason. Ron Singleton will be using accumulated sick leave to take the year off, Jones said, adding he felt it was the compassionate thing to allow the year’s leave.

The school system has not yet been reimbursed by Toby McKenzie for half of this year’s loan payment for the football stadium at PCHS. McKenzie made half the payment earlier this year after the county made the $45,000 loan payment when it was due, but the school system had to pay the county for the other half. Jones said he has been told the system will get the money from McKenzie, who pledged the money for the stadium, to be paid over a five-year period. This is the third year.