PIERCETON - Due to the state of Indiana's budget crisis and the state property tax reassessment, Whitko Community School Corp.'s budget for the next few years may be hurting.

Monday, director of finance Phil Menzie told the school board he met with the Department of Local Government Finance Oct. 14 for the 2004 budget, but the 2003 budget has yet to be finalized.

Whitley County also has yet to finalize its assessed valuation. It's a crap shoot, he said, of whether or not Whitko schools will get their tax draw at the end of the year.

To pay back the tax anticipation warrants, Menzie said, the school board may have to pass some resolutions in December. The bond bank will likely work with the school corporation on the payment of the warrants.

"The major problem at this point is a cash flow problem," said Menzie. If the tax money doesn't come in, the question for Whitko will be where the money will come from to pay for Whitko's expenses.

Pete Mitchell, school board member, said at the Indiana School Board Association meeting recently, the news was pretty discouraging about Indiana and the bad shape the state is in financially.

The state is behind a huge amount, Menzie agreed. It may be three to four years before the state can turn around, he said.

Mitchell said they need to get the information out to the "man on the street" about the fiscal pinch. "That message is not getting out," he said.

If Whitko has to borrow money to pay their bills, Mitchell said, along with paying that money back, there is interest to pay back.

Menzie added Whitko may not get all the money back from the state this year.

Dave Tranter, board president, said the school board has to borrow money to pay their bills and they are waiting on money from the state to do that and that may not come.

Board member Hal Trump said they need to contact their state officials about the problem. [[In-content Ad]]