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LARWILL - The state no longer is providing school corporations with transportation money, Whitko Schools Director of Finance Phil Menzie told the school board Monday.
But the state is allowing school corporations to transfer money from their capital projects funds to the transportation funds one time prior to Dec. 31.
To help pay for transportation expenses, the Whitko school board, as recommended, approved transferring $100,000 from the capital projects fund to the transportation fund.
Menzie said they hope during the next General Assembly, the legislature will give schools some money in the transportation budget, but "we just don't know."
Each year, schools such as Whitko take out loans in the form of tax anticipation warrants for cash flow purposes.
Because it is uncertain when taxing entities will receive their tax draws again this year, Menzie recommended the school board approve a resolution authorizing the warrants if the need arises again this year, as is expected. The resolution was unanimously approved.
Superintendent Dr. Jeff Hendrix said school corporations are not allowed to operate at a deficit. The state can, but school corporations can't. Yet, to pay their bills, school corporations have to borrow money, which has interest charged to it. School corporations in the state are thus paying extra "just so we can operate," Hendrix said.
The state could borrow the money to pay the schools, but instead they are forcing local boards to do the borrowing and pay the interest.
"We're forced into this situation," said Hendrix.
Just with the money they borrowed last year because they didn't receive their 2003 tax draws on time, Menzie said, Whitko paid $10,000 in interest.
"That's half a teacher," said Pete Mitchell, board member.
The board also approved the math textbook adoption and the school lunch prices for the 2004-05 school year.
