School Board Voices Concern About Finances
July 28, 2016 at 4:25 p.m.
By David [email protected]
And what was on their minds was fear of where the economy is headed.
"I'm afraid," said Board Vice President Dan Robinson. "If we were voting on these school projects today, I'd vote no."[[In-content Ad]]He said the school corporation had a need for more classroom space, but it is scary where finances are headed.
In 2004, the school corporation closed Atwood, Claypool and Silver Lake. In 2008, the school board approved a motion to build new Madison and Leesburg schools, reopen and renovate Claypool Elementary and renovate Jefferson. The four projects were estimated to cost about $60 million but so far have come in under budget.
Kent Adams, school board member, agreed with Robinson. He said while 2010 will be tough, there's talk that 2011 will be tougher. People in the community are hurting, and the school board needs to be sensitive to that.
If things take a turn for the better, board member Ron Yeiter said, the school board may end up being "saints" in the project. He said he's trying to stay optimistic, and the projects are helping people keep their jobs.
Robinson said the projects are helping the Fort Wayne job market. "They don't pay taxes here," he said. The contractors are all from the Fort Wayne area.
Delores Hearn said she spends a lot of time up in the northern part of Kosciusko County, including Syracuse. "People here have no idea how bad it is up there," she said.
In the school supplies list, parents are asked to buy such things as reams of paper for their classrooms. Deb Wiggins, school board president, said she is getting asked why parents have to help supply the classroom with such supplies.
"Something needs to be done so there's sensitivity by the school corporation without demand," Wiggins said.
Chris Gensinger, assistant to the superintendent, said hard times are supposed to make us better people. If the school corporation can handle this adversity, "we'll be better people," he said.
After listening to the board's comments, Superintendent Dr. Craig Hintz said he's sensitive to the comments about the economy and community. Parents are laid off and families are in need. As a corporation, Hintz said, they all need to be sensitive to that.
Chief Financial Officer Kevin Scott provided a timeline for the 2010 budget. The budget will be published in the local newspaper Aug. 28 and Sept. 4. There will a public hearing on the budget Sept. 9, and the official adoption is set for the Sept. 21 regular board meeting.
To prepare the budget, Scott provided more than two pages of assumptions that were made. The proposed 2010 budget is $68,766,023. The advertised 2009 budget was $69,382,666, with the available 2009 budget being $71,032,448.
The largest part of the school budget is the general fund. Beginning with the 2009 budget, the state now controls that fund. Scott made more than 25 assumptions about the fund to prepare the budget.
When the school building projects were approved, Scott said the school corporation was thinking about keeping the old Madison Elementary open and using it for other needs. That will be difficult to do now, he said.
Several increases are included in the assumptions for the 2010 general fund. Wage increase assumptions were made for all salary staff of 2.5 percent for 2009-10 and 1.7 percent for 2010-11 school years. Coaching salaries are increased 15 percent ($47,000) as agreed in the master contract for the 2008-11 school years.
The substitutue teacher pay budget is up significantly, about $71,500, Scott said, after being flat for the 2009 budget. Wiggins said the school corporation needs to look at why the sub costs are up. Scott said the pay rate is flat, but more sub days are being used. Wiggins said they need to look at why.
Unemployment compensation is up $19,500 for 2010; supply expense is up $118,800 with custodial accounting for $83,500 of it; summer school is flat for 2010; and the corporation's match for Step One, A+ and Alternative Learning Center programs is up 2.5 percent.
As for utilities, gas heat will remain flat. Scott said belonging to the 30-member cooperative has been very effective.
If the Cap & Trade becomes a reality, Scott said a representative from REMC told him to expect to see a 30 percent increase in electric costs. Water and sewage will increase $27,900 from the 2009 budget. Wiggins said that with what the water company plans, to expect more to the water and sewage bill. Scott also is counting on a 2 percent increase for trash pickup, and postage will increase $2,100 for 2010.
The Teacher Retirement Fund rate will increase 7.5 percent as of July 1, 2010, and the Public Employees Retirement Fund rate will increase from 6.5 to 6.75 percent next year.
"PERF has been on the rise, and I don't know how they calculate that," Scott said.
Another expense will be band uniform replacement. The band hasn't had new uniforms since 1997. Scott said the Band Boosters look to raise $30,000 to $35,000, so WCS's share will be about $40,000.
For 2010, Claypool Elementary will be open for 4.5 months. An additional $500,000 is figured for the school's operation.
For the Capital Projects Fund, roofing replacement at Harrison and Eisenhower Elementary schools had to be delayed. However, the school corporation received funding from the federal stimulus to replace Eisenhower's roofing, and it is hoped that more funding may be received in the next year for Harrison's roof. However, Scott said, the state seems to be changing the rules for school corporations to receive the stimulus funding.
Scott also reviewed assumptions for the debt service, transportation operating, bus replacement and preschool fund. The preschool fund will be rolled into the general fund as a late change by the Indiana Department of Education, Scott said.
In the transportation operating fund, Scott said the fuel budget remains flat from 2009. The school corporation currently is paying lower prices, but prices may go back up quickly if the pace of economic news picks up.
Under the bus replacement fund, three buses will be replaced for 2010. Della Swain, transportation director, also wants to increase the bus fleet by one conventional bus because of lost seating capacity as WCS replaced conventional buses with special needs-oriented lift buses in the past few years. Each bus is assumed to cost WCS about $136,500.
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And what was on their minds was fear of where the economy is headed.
"I'm afraid," said Board Vice President Dan Robinson. "If we were voting on these school projects today, I'd vote no."[[In-content Ad]]He said the school corporation had a need for more classroom space, but it is scary where finances are headed.
In 2004, the school corporation closed Atwood, Claypool and Silver Lake. In 2008, the school board approved a motion to build new Madison and Leesburg schools, reopen and renovate Claypool Elementary and renovate Jefferson. The four projects were estimated to cost about $60 million but so far have come in under budget.
Kent Adams, school board member, agreed with Robinson. He said while 2010 will be tough, there's talk that 2011 will be tougher. People in the community are hurting, and the school board needs to be sensitive to that.
If things take a turn for the better, board member Ron Yeiter said, the school board may end up being "saints" in the project. He said he's trying to stay optimistic, and the projects are helping people keep their jobs.
Robinson said the projects are helping the Fort Wayne job market. "They don't pay taxes here," he said. The contractors are all from the Fort Wayne area.
Delores Hearn said she spends a lot of time up in the northern part of Kosciusko County, including Syracuse. "People here have no idea how bad it is up there," she said.
In the school supplies list, parents are asked to buy such things as reams of paper for their classrooms. Deb Wiggins, school board president, said she is getting asked why parents have to help supply the classroom with such supplies.
"Something needs to be done so there's sensitivity by the school corporation without demand," Wiggins said.
Chris Gensinger, assistant to the superintendent, said hard times are supposed to make us better people. If the school corporation can handle this adversity, "we'll be better people," he said.
After listening to the board's comments, Superintendent Dr. Craig Hintz said he's sensitive to the comments about the economy and community. Parents are laid off and families are in need. As a corporation, Hintz said, they all need to be sensitive to that.
Chief Financial Officer Kevin Scott provided a timeline for the 2010 budget. The budget will be published in the local newspaper Aug. 28 and Sept. 4. There will a public hearing on the budget Sept. 9, and the official adoption is set for the Sept. 21 regular board meeting.
To prepare the budget, Scott provided more than two pages of assumptions that were made. The proposed 2010 budget is $68,766,023. The advertised 2009 budget was $69,382,666, with the available 2009 budget being $71,032,448.
The largest part of the school budget is the general fund. Beginning with the 2009 budget, the state now controls that fund. Scott made more than 25 assumptions about the fund to prepare the budget.
When the school building projects were approved, Scott said the school corporation was thinking about keeping the old Madison Elementary open and using it for other needs. That will be difficult to do now, he said.
Several increases are included in the assumptions for the 2010 general fund. Wage increase assumptions were made for all salary staff of 2.5 percent for 2009-10 and 1.7 percent for 2010-11 school years. Coaching salaries are increased 15 percent ($47,000) as agreed in the master contract for the 2008-11 school years.
The substitutue teacher pay budget is up significantly, about $71,500, Scott said, after being flat for the 2009 budget. Wiggins said the school corporation needs to look at why the sub costs are up. Scott said the pay rate is flat, but more sub days are being used. Wiggins said they need to look at why.
Unemployment compensation is up $19,500 for 2010; supply expense is up $118,800 with custodial accounting for $83,500 of it; summer school is flat for 2010; and the corporation's match for Step One, A+ and Alternative Learning Center programs is up 2.5 percent.
As for utilities, gas heat will remain flat. Scott said belonging to the 30-member cooperative has been very effective.
If the Cap & Trade becomes a reality, Scott said a representative from REMC told him to expect to see a 30 percent increase in electric costs. Water and sewage will increase $27,900 from the 2009 budget. Wiggins said that with what the water company plans, to expect more to the water and sewage bill. Scott also is counting on a 2 percent increase for trash pickup, and postage will increase $2,100 for 2010.
The Teacher Retirement Fund rate will increase 7.5 percent as of July 1, 2010, and the Public Employees Retirement Fund rate will increase from 6.5 to 6.75 percent next year.
"PERF has been on the rise, and I don't know how they calculate that," Scott said.
Another expense will be band uniform replacement. The band hasn't had new uniforms since 1997. Scott said the Band Boosters look to raise $30,000 to $35,000, so WCS's share will be about $40,000.
For 2010, Claypool Elementary will be open for 4.5 months. An additional $500,000 is figured for the school's operation.
For the Capital Projects Fund, roofing replacement at Harrison and Eisenhower Elementary schools had to be delayed. However, the school corporation received funding from the federal stimulus to replace Eisenhower's roofing, and it is hoped that more funding may be received in the next year for Harrison's roof. However, Scott said, the state seems to be changing the rules for school corporations to receive the stimulus funding.
Scott also reviewed assumptions for the debt service, transportation operating, bus replacement and preschool fund. The preschool fund will be rolled into the general fund as a late change by the Indiana Department of Education, Scott said.
In the transportation operating fund, Scott said the fuel budget remains flat from 2009. The school corporation currently is paying lower prices, but prices may go back up quickly if the pace of economic news picks up.
Under the bus replacement fund, three buses will be replaced for 2010. Della Swain, transportation director, also wants to increase the bus fleet by one conventional bus because of lost seating capacity as WCS replaced conventional buses with special needs-oriented lift buses in the past few years. Each bus is assumed to cost WCS about $136,500.
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