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Fiscal Cliff Effects Could Be Detrimental to Local Schools

By: Tyler Thomason
Updated: December 13, 2012
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When it comes to Fiscal Cliff worries and springdale schools, Kelly Hayes might have the biggest headache.

"i'm in charge of the district finances," Hayes says.

And like all school districts, Springdale is facing the potential of fewer finances in 2013.

"It's very frightening," Hayes says.

A potential 8.2 percent education budget cut hangs by a thread from the Fiscal Cliff.

That means if extensions aren't agreed to, federally assisted school programs -- and possibly jobs -- could be drastically affected.

"That would be the last resort, to reduce any staffing because the biggest impact on a student is a person in the classroom with them," Hayes says. "We would be looking at things like manipulatives, cutting back on one-time items, one-time expenses rather than ongoing expenses, as much as possible."

In Springdale, $13-million dollars of its operating budget is federally funded, which means an 8 percent budget cut takes away a million dollars a year from the school district.

"We do have some funds that are on hand that we could use to offset the shortfall in the interim period," Hayes says.

But not all districts are that fortunate.

Federal funding assistance increases with larger enrollement -- so for districts with less growth, effects could be worse.

"If they suddenly have a reduction in their budget, it affects them immediately," Hayes adds.

So in the meantime as December 31 draws near, Hayes has advice to add:

"Hope for the best. Prepare for the worst."

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