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More than 50 people attended Warsaw School Board's public budget hearing Monday, many still opposed to the administrators' increase approved last week.
On Aug. 9, the board approved a 4 percent salary increase for administrators.
Superintendent Dr. David McGuire defended the increase, saying, "The 4 percent was to make sure we remain competitive. We're now in the middle of the pack for school corporations our size - the middle of the pack this year for other school systems last year. ... Most of our people actually could go somewhere else and make more."
Last year, he said, teachers and administrators took a cut in pay because insurance costs went up and the pay stayed the same.
"Welcome to the real world," said Valerie Rowland, a Claypool parent. "Our insurance rates go up and our salaries don't always cover it. ... We only get so much money from the state. You already knew that. If we don't have it, we shouldn't spend it. It's not your money, it's all of our money and you're spending it like water."
"Probably the biggest stir is that schools were closed to save money and then you turn around and give 4 percent increases," said Becky Thomas, an Atwood resident.
Another Claypool resident, Mary Green, thanked board members Ron Yeiter and Gene England for voting against the 4 percent increase.
"Thank you for standing up for the taxpayers," she said.
Mark Minatel, board member, interrupted Green's comments.
"Don't imply that the rest of the board doesn't stand up for the taxpayers," he said, and he instructed Green to state her question.
Green noted that approximately $81,000 was given out in bonuses to select personnel, suggested dropping bonuses to administrators and challenged administrators to return their raises and bonuses to the general fund.
The proposed budget for 2005 is $50,430,102, which includes $36,593,938 for the general fund (operating expenses, salaries, benefits, insurance, utilities); $4,858,290 for the debt service fund (paying back debt incurred by the school corporation); $2,281,582 for the transportation fund (buying and maintaining school buses, workers' salaries and benefits); $6,366,750 for the capital projects fund (buying and maintaining equipment, construction, building repair, land acquisition and professional services); and $329,542 for the preschool special education fund.
McGuire said Warsaw Community School Corp. has one of the lowest tax rates in the state, but "we have not been able to raise enough in the general fund to offset expenses; additional cuts may be made."
He blamed the corporation's fiscal problems on the inequalities in state school funding. For example, he said, Columbia City schools receive $800 more per pupil from the state than Warsaw schools.
"People from Columbia City aren't radically different than we are - I don't understand why they're worth more than we are," he said.
In the worst case scenario, he said, projections have the general fund at approximately $1 million over revenue. In a handout that McGuire read, he said, "Significant cuts to past budgets have kept us solvent to date, but additional, substantial and painful cuts will still be necessary to bring us in balance."
The proposed budget officially will be adopted at the Sept. 20 school board meeting.
