SYRACUSE - In the next couple of months, Wawasee Schools will have to find a way to cut $175,000 in expenses, according to Superintendent Dr. Mark Stock.

Wherever the cuts come from, though, Stock told the Wawasee School Board Tuesday, they will do their best to protect the academic core - reading, writing and math.

By order of Indiana Gov. Mitch Daniels and Chuck Schalliol, state budget director, in January, monthly payments to schools will be reduced starting in March to start meeting a cap on school spending that lawmakers included in the current two-year budget.

For the fiscal year, the state is withholding $26.7 million from the schools' 2005 fiscal year tuition support appropriation beginning in March. The second level of withholdings begins in July for the rest of the calendar year and totals another approximate $25 million to $26 million from the 2005 calendar year spending authority.

For Wawasee, that means a fiscal year loss of approximately $175,000 this year.

Stock said Tuesday Indiana has some challenges ahead economically and in meeting standards.

In a bipartisan effort, lawmakers approved Public Law 221 and other laws requiring schools to meet state standards. Stock said local school districts have accepted the challenges and are moving forward. Wawasee has made improvements.

"It's pretty clear we've made progress," said Stock.

While Daniels said in his "State of the State" address Indiana lags behind the nation, Stock said he took issue with that.

Ten things Stock said the public won't read in the governor's newsletter include: Indiana was second internationally in fourth-grade science. Indiana was ninth internationally in grade eight science and grade four math. Indiana was 10th internationally in grade eight math. Indiana exceeded the national average of students from the U.S. on every measure. Indiana increased combined SAT score 35 points since 1990, exceeding other state averages by 15 percent. Indiana raised attendance rates to the highest in state history. The state raised the percentage of academic honors diplomas for 13 of 14 years. Indiana was only one of eight states to get an A- in standards and accountability in Ed Week 2005. And Indiana has made progress on narrowing the achievement gap on 13 of 18 measures.

"Tremendous progress has been made," said Stock.

It's unfortunate economic troubles have hit the state at this time, he said.

"Indiana is broke," said Stock. "Indiana is $1.6 billion broke."

Stock said the state failed to honor their two-year budget commitment to schools as generated by the funding formula. The state must find a way to cut $600 million in ongoing expenses or increase revenue streams to find that amount.

The local challenges the state's problem creates include the $175,000 budget cut this year, and the school corporation must prepare to weather a two-year budget that will take money away.

The government keeps mandating, but doesn't provide the money to back up the mandates. Schools must provide money for teachers' retirement funds and Social Security that once was provided by the state and the federal government hasn't provided all the monies they were supposed to provide for special needs students.

Over the past years, Wawasee has made efforts to deal with budget shortfalls - reductions by attrition and reduction of positions, to name two. The corporation also has efficiency measures under way, including climate control.

School board president Dallas Winchester said the board expects public input on the cuts. George Gilbert, board member, said as important as they feel education is, it all boils down to dollars. [[In-content Ad]]