|
Mar. 3, 2010
By Chris Umscheid
NORTH LIBERTY LEADER
|
(From left) CCA Superintendent Dr. Paula Vincent, board secretary Dee Dee Madden, and board member Aimee Pitlick during a Feb. 17 work session in Tiffin. Dr. Vincent reviewed the budgetary process and circumstances as the board ponders the 2010-2011 budget.
(Chris Umscheid) |
|
|
TIFFIN - Between budget shortfalls at the state level, and lingering questions about the future of state school funding, the board of directors for the Clear Creek Amana (CCA) School District have a daunting challenge ahead of them in planning the 2010-2011 budget.
The debate began with a Feb. 17 work session at the high school library with a history lesson and crash course in the complexities of Iowa schools funding mechanisms and formulas.
"We had nothing to go on last year, we had to make assumptions," Superintendent Paula Vincent said, explaining how their best guess wasn't good enough. "We had a budget set at $14 million," she said, but only a few months into the year "the state said 'oops' we can't fund it"
The district lost approximately $666,000.
"We chose not to make adjustments," Vincent said, other than for things they could control, like heat in the buildings. "Our faculty are getting used to, I'm sorry to say, wearing heavy clothes"
Vincent noted the district will still run about a $300,000 deficit.
She added it appeared there would be less money from the state than initially promised, so the district made some reductions in anticipation.
"We hoped we were leveling the playing field," she said.
What happened was more significant.
"We assumed a 5 percent across-the-board cut was coming. Well, we got a 5 percent cut plus a 10 percent cut"
Vincent hopes the next budget will get the ship righted, and keep it on an even keel regardless of the stormy seas of school finance policy and revenue.
By using trend lines, Vincent and the board hope to make informed assumptions to craft a budget. However, Vincent pointed out if state revenue continues to fall "we could be off again"
Iowa is unique among the states in how it finances schools. Money is distributed in a "pupil-driven" manner, meaning funding is totally based on student counts. For CCA, this actually helps, as the district is one of very few seeing steady growth, according to Vincent. She cited statistics showing only 25 percent of the state's 361 districts as growing in enrollment.
"It's an enviable position to be in," she added.
Vincent showed a chart documenting certified enrollment from September, 2000, to September, 2009. The district grew from 1,187.30 students to 1,479.75. A second chart showed actual enrollments of 1,249 in 2001 to 1,575 currently. Certified enrollment means a student's family lives within the district. While it may seem odd to have .30 or .75 students, the fractions actually reflect students who may be in special education programs, are shared with other districts, or fall under other categories.
Included in the growth in enrollment is an increase in students taking advantage of open-enrollment to CCA. Currently, more students open-enroll into the district than out. For fiscal year 2011, 96 students open-enrolled into the district. They brought $542,000 in state dollars with them.
It wasn't always that way, however.
During the 2004-05 school year, more students open-enrolled out than in. By 2007-08 however, the trend was reversed. Vincent noted a number of reasons for students utilizing the option, including legal issues such as custody matters.
While Vincent said the trend currently "seems to have held steady," she noted space could become an issue in the district in the near future.
The state Legislature sets the cost per pupil. Originally in 2009, the district received $5,582 per student, but after a 1.50 percent reduction, the amount dropped to $5,498 after the budget had been set for the year.
"The last three years, quite honestly, have been pretty difficult," Vincent said, because of mixed signals and changes coming from Des Moines. For example, in 2009 the state left the authority to spend at the higher (pre-cuts) cost per student. But, the state also failed to send the cash to back up the amount.
"So, you have an amount you are allowed to spend, but you also have an amount you actually received money for," Vincent said. In 2009, the district lost $80-90 per student, but for the current year, the amount is more significant, and Vincent predicted it will only worsen. At some point, as in the past year, the district may again have to tap into its cash reserve. Vincent asked the board at what point do they need to do so, and at what point do they need to look at the tax levy.
Governor Chet Culver may end up helping with part of that decision. Culver signed a law in January mandating schools to utilize their cash reserves before asking taxpayers for more money.
"Because we are growing, we should gain $200,000 in actual cash. If we want to run a balanced budget for next year, it means we have to hold the line and somehow make up that difference of $100,000," Vincent said. Also, the board should consider preparing for potential rising costs such as fuel, energy, or even snow removal - a significant budget item this winter. Vincent said if the board can make the difference of about $500,000, then the district should be in good shape.
She noted they do not have "hard and fast data" to work with.
What they do have, however, are good evaluations. Vincent said those help with bond referendums and physical plant levies.
"What it doesn't help is our general fund," she said. The communities that provide the tax base for the district tend to rely on Tax Increment Finance (TIF) districts. TIF districts take in part of the school district's property value, reducing available dollars for general fund purposes," Vincent explained.
"The Legislature will do the best they can do and then they'll go home," Vincent said. "If revenues go down from what they projected, there will have to be some other actions" Because of this, Vincent doesn't expect any solid revenue projection data from the state until June.
The district's budget has to be certified by April 15.
|
|
|
