Efficiency Review Identifies $327,638 in Potential Annual Savings for Surry County Schools

Efficiency Review Identifies $327,638 in Potential Annual Savings for Surry County Schools

— Initiative part of Governor Warner's Education for a Lifetime program —

Governor Mark R. Warner announced today that a voluntary efficiency review launched as part of his Education for a Lifetime initiative has documented more than $325,000 in potential net annual savings for the Surry County Public School Division (SCPSD). The review identified $428,536 in annual savings, as well as recommended annual investments of $100,898, for a net potential annual savings of $327,638, or 2.47 percent of the division's annual operating budget.

"Last year's bipartisan budget compromise enabled us to fully fund the state share of education in Virginia," Governor Warner said. "But we must also ensure that efficiency and responsibility are the watchwords of that record investment. We must not only pledge the necessary funding to Virginia's schools, but also help guarantee taxpayers that resources are making their way into the classroom."

"Superintendent Marion H. Wilkins was eager to go through this extensive review process," Governor Warner said. "The review noted areas for savings, but also many accomplishments of Surry County Schools that have led to increased efficiency and effectiveness. These best practices identified in the review are just as significant as the potential savings."

These efficiency reviews are designed to help public school divisions realize greater efficiencies and identify best practices that can be shared with other school divisions. One of the over-arching issues facing the Surry County Public School Division is a declining enrollment, coupled with many on-going and fixed costs. Those costs are being spread over fewer and fewer students each year, resulting in relatively higher costs per student than would be experienced by divisions with stable or growing enrollment.

"It was an honor for Surry County Schools to have had the opportunity to participate in Governor Warner's School Efficiency Review Program," said Dr. Marion H. Wilkins, Superintendent of the Surry County Public School Division. "The consulting group worked very closely with Surry County Public Schools' staff to compile information for the review. This review will inform the public of the significant savings, identified by the consulting group, that have been achieved through administrative and management best practices. We will review in depth the recommendations provided in the efficiency review, develop an implementation plan, and continue to strive to improve the efficiency of Surry County Public Schools."

According to 2000 U.S. Census data, 6,829 people live in Surry County. The public school system operates three schools and had an enrollment of 1,115 students in September 2004. The Surry County Public School Division has 254 full-time staff, including 110 full-time instructional staff, and operates at least 23 school buses daily with a 2004-05 operating budget of $13,258,846, excluding debt service.

The review was conducted by E.L. Hamm & Associates, one of four consulting firms selected to conduct this year's reviews for the Commonwealth. Identified below are the potential savings opportunities identified in the review.
Recommendation Annual Savings

Eliminate late fees and regain lost discounts

$4,096
Eliminate pre-approved overtime

$92,220
Phase out one assistant principal position

$75,000
Phase out three custodian positions

$44,833
Reduce food personnel by four

$70,776
Increase food service revenue

$41,311
Eliminate one bus mechanic

$38.700
Increase energy awareness

$40,000
Eliminate one bus from daily service

$21,600
Total Estimated Annual Savings

$428,536
Recommendation Annual Investment One-time Investment

Create two computer resource lab positions
$52,800

Install motion devices on vending machines
$2,100

Hire a grants writer
$48,098

Total Estimated Investment
$100,898

$2,100

Net Estimated Annual Savings
$327,638

The Surry County Public School Division is one of six school divisions that agreed to participate in an expansion of the efficiency review program included in the Governor's Education for a Lifetime initiatives. Last year, state auditors and management specialists from the state Department of Planning and Budget reviewed school divisions in the City of Richmond and New Kent and Roanoke counties as part of a pilot program of school audits. Last fall, Governor Warner announced the expansion of this initiative to include the City of Portsmouth, and the Surry, Stafford, Campbell, Spotsylvania and Williamsburg/James City County school divisions. These findings are subject to review by the Surry County School Board.

The individual school system reviews are modeled after successful programs in Texas and Arizona. Since its inception in 1991, the Texas program has conducted nearly 100 audits of public school districts and recommended net savings totaling $750 million dollars.

To view previously completed school efficiency reviews, visit the Department of Education's Web site.

http://www.governor.virginia.gov/Press_Policy/Releases/2005/Apr05/0412.htm