The Greene County Board of Education was told Thursday that the county school system's budget for the next school year is $830,000 out of balance -- as a result of a decline in the amount of state funding the county system expected to receive.

Director of Schools Dr. Joe Parkins delivered the gloomy fiscal news during his monthly report to the board on Thursday afternoon.

Parkins noted that he had gotten "bad news" in the form of a May estimate of next year's state Basic Education Program (BEP) funding from the state Department of Education.

That estimate, he said, showed that the Greene County School System currently is projected to receive only about $70,000 more in state BEP funding during the 2008-09 school year than it did during the current school year.

In contrast, Parkins said, the county school system had received $403,000 more in so-called BEP "growth" funds for the 2007-08 school year than it did for the 2006-07 school year.

However, in terms of total state BEP funding, Parkins said, the county school system will receive slightly more in state funding in 2008-09 than it did this fiscal year.

The director of county schools said after the meeting, the Greene County School System is currently projected to receive a total of $28,767,000 in BEP funds for the 2008-09 school year.

For the current school year, which ends June 30, the county schools received a total of $28,697,000 in state BEP funds.

Parkins said the budget projections could change when the state Department of Education releases its final 2008-09 BEP funding totals in July. But he said on Thursday that he feels it is unlikely additional state money will be made available to local school systems.

At the same time, he said, the cost of everything from diesel fuel, electricity and employee health insurance, has risen steeply. Budget Workshop Planned

Parkins asked board members to attend a budget workshop at 10:30 a.m. Thursday, May 29, to decide how to cut the general purpose school budget to bring it into balance.

In making the needed cuts, Parkins said, board members should strive to preserve the jobs of school system employees and to protect the integrity of the system's instructional program.

But Parkins said the jobs of 19 special education aids, whose positions are funded by federal funds, will have to be eliminated due to a decline in federal funds for the coming school year. (Please see accompanying article.)

The workshop meeting, he said, is to be followed immediately by a called meeting of the board to consider approving the revised budget so that it can be submitted to the Greene County Commission.

"It's bad news," Parkins said, "But everyone (directors of other school systems) I've talked to today got bad news."

Parkins noted that he had understood earlier that Gov. Phil Bredesen had proposed setting aside $60 million to provide for "growth" in BEP funding for the 2008-09 school year.

"Where's the growth?" Parkins asked rhetorically. "We didn't get it. Greeneville didn't get it. Kingsport didn't get it."

He also pointed out that the cost of employee health- insurance coverage, alone, has already gone up $97,000 for the first half of the coming school year. "They aren't even sending us enough new money to cover that," he said.

Parkins conceded that the budgetary gap is going to be difficult to close, commenting as he distributed a list of cuts that can potentially be made. He asked board members to study the list prior to the May 29 budget workshop and to keep the list confidential.

The director of schools said he didn't want to unnecessarily upset school system employees with discussion of possible job cuts.

In other action during the Thursday afternoon meeting at the James W. Parham Central School Office, Parkins also told the board that construction work on band rooms at North Greene and South Greene High Schools is lagging months behind schedule.

The North Greene project, he said, is currently three months behind schedule, while the South Greene band room project is currently four months behind schedule.

Both band rooms are being built by Parkway Contractors.

County school officials had hoped to have both band rooms finished in time for the opening of the 2008-09 school year in August, but neither will now be ready.

Parkins told the school board that he had discussed construction contract "non-compliance" issues with County Attorney Roger Woolsey and planned to speak with Woolsey again to see what action the county school system can take concerning the construction delays.

"I've had 11 construction projects since I've been director and I've never had problems like this," Parkins said.

On a more positive note, Parkins said, construction of the new athletic field house at North Greene High School is proceeding on schedule.

Parkins said the field house is being built by Greene County School System maintenance employees under the director of Maintenance Director David Myers.

He noted that the exterior walls of the field house are finished and that employees are almost ready to being installing roof trusses.

The County School Board approved the holding of a band camp for South Greene High School July 28 through Aug. 1 at Locust Springs Retreat Center off Old Baileyton Road in northern Greene County.

The county school board approved:

* an increase in lunch prices for grades Pre-K through 3 from $1.50 to $1.75 and to breakfast prices for all grades from $1 to $1.50 and $1.25 to $2 for adults effective 2008-09;

* a low bid of $26.19 per case for copy paper was submitted by Ricoh;

* low bids of $26.85 per case for toilet paper, as submitted by Kelsan and $12.50 per case for paper towels as submitted by Ford Systems;

* a low bid of $33,574 for North Greene field house lockers, as submitted by TMS South;

* low bids for window replacement at Baileyton School, Glenwood School, and South Greene High as submitted by Holston Glass Co.;

* low bids for vinyl floor tile of $9,000 for Glenwood Elementary and $12,750 at Camp Creek, as submitted by Dockery Floor Covering;

* a low bid of $17,200 for paving at Doak School, as submitted by Brown Brothers and Weems;

* a low bid for entrance doors at Mosheim School of $16,870, as submitted by Keller Glass Co.;

* an Extended School Program rates and employee pay-scale effective 2008-09 (required due to increase in federal minimum wage);

* a general-purpose school fund budget amendment in the amount of $3,550 for Milk Settlement Funds to be used in the Coordinated School Health Program;

* low bids for school and band-room furniture;

* a low bid for carpet cleaning at a cost of 85-cents per square foot, as submitted by Carpet Masters;

* a low bid for McDonald plumbing replacement for $36,235, as submitted by Midway Construction (contingent on approval of the 2008-09 school system budget;

* revisions to a career guidance procedures manual, as submitted by the policy committee:

* a new Kindergarten Skills Report form (to match the nine-week grading period;

* the use of the National Guard program "Stay on Track" for use with sixth through eighth grade students;

* a 2008 federal budget transfer of $69,133 from the Title II program to the Title V program.

The county school board offered congratulations to Chuckey Elementary School Principal Teresa Taylor for receiving a $10,000 grant from the East Tennessee Foundation for Positive Behavior Support.

The board also heard an annual report from Alisha Ricker, director of the Family Resource Center at Chuckey Elementary School, the center's operations.

During her report, Ricker asked for the board's support in expanding the Family Resource Center's operations to all Greene County schools.

In addition, the board offered congratulations to West Pines Elementary School Principal Tim Harrison for his school having had the highest teacher attendance rate for April (98.18 percent).