DAWSONVILLE, Ga. — The COVID-19 pandemic has dealt the American economy a devastating blow. The International Monetary Fund says this is the worst economic downturn since the Great Depression. More than 22 million Americans have lost their jobs.

As city/county governments and school districts begin to prepare their FY ’21 budgets, there is widespread uncertainty. A spokesman for the Learning Policy Institute said the only sure thing is that public education will suffer.

Fetch Your News wanted to know what local educators were thinking so we spoke to Dawson County School Superintendent Dr. Damon Gibbs who, although extremely busy, took the time to talk to us.

Gibbs stated, “We base our budget revenue on two main sources. The first is our state revenue generated by the QBE funding formula. The second is our local revenue generated by local property taxes. The state revenue is generally available at this time. Due to the legislative session being delayed, a state budget has not been completed. Based on the lack of revenue information, we do not have sufficient data to complete a final budget at this time.”

One unfortunate starting point for budget planning is the announcement last week that state lawmakers plan a 14 percent reduction in state funding. “That could reduce our state allotment by $3.6 million,” Gibbs said.

Approximately 46 percent of the Dawson County Schools general fund comes from state revenues, 54 percent is funded locally.

About 87 percent of all expenditures is allocated to salaries and benefits. That is a frightening statistics for teachers and other school system employees.

Michael Griffith, a senior analyst with Learning Policy Institute, said, “The current economic downturn will put a large number of teaching positions at risk.” That is exactly what happened during the recession of 2008-2012.

Asked if teaching positions would have to be eliminated, Gibbs said, “It is too early to say, but we are evaluating all options at this point. Unfortunately, current law prohibits school districts from using ESPLOST funds to cover the cost of salaries and benefits.”

The school system has two ESPLOSTS. “We are nearing the end of our current ESPLOST and the voters of Dawson County approved a new ESPLOST that will immediately follow,” he said.  “The November vote also approved the sale of $10 million in bonds, which have been sold. Those funds must be spent within 36 months.”

The new ESPLOST will help fund future capital expenditures. “The new Technology Center has been designed and, at this point, will proceed as planned,” Gibbs said. “We have suspended $2 million in summer projects this year. The Black’s Mill Roof/HVAC replacement will be completed as planned. Technology devices for students and staff, new buses for our fleet, and resurfacing the DCHS track will be completed. Any expenditures will be completed with funds previously collected.” Unfortunately because of the current economic recession, the new ESPLOST is unlikely to reach the estimated goal which will impact future construction.

“We anticipate the economic slowdown to delay the collection of approximately $2 million this year,” he said.

State law requires local governments to have an approved budget by June 30. But because the General Assembly is still in recess due to the COVID-19 shutdown and not expected to return until at least June 11, the School Board will likely be asked to approve a spending resolution. A spending resolution would allow the school system to spend an amount equivalent to one month of revenue from the previous year’s budget in July.

Fetch Your News is a hyper local news outlet that covers Dawson, Lumpkin, White, Fannin, Gilmer, Pickens, Union, Towns and Murray counties as well as Cherokee County in N.C. FYN attracts 300,000+ page views per month, 3.5 million impressions per month and approximately 15,000 viewers per week on FYNTV.com and up to 60,000 Facebook page reach. If you would like to follow up-to-date local events in any of those counties, please visit us at FetchYourNews.com