I-S schools face $200,000 shortfall
The Iola-Scandinavia School District will face a $203,300 shortfall in 2012-13.
District Administrator Joe Price presented this information to the district's Finance Committee on Jan. 9.
According to Price, the district's projected revenue is $738,000 for 2012-13, compared to $751,000 in 2011-12.
Price explained that the district's revenue limit will drop from $6.88 million in 2011-12 to $6.79 million in 2012-13.
The district will also lose $154,685 in revenue from the federal government's Education Jobs Fund, but gains about $36,900 in total per pupil adjustment aid from the state.
Price proposed that the Finance Committee consider using Fund 80, a special service fund that the district has not previously used.
He suggested that the district could levy money from Fund 80 to help run the I-S Community Fitness & Aquatic Center.
"It would be an appropriate time because we will save a little over $50,000 a year on (the recently refinanced) bonds, lowering the tax levy," Price explained. "If we kept Fund 80 at $50,000, it wouldn't impact taxes."
He noted that the downside would be that Fund 80 is outside the revenue limit and outside of state aid.
"You don't really lose state aid, just lose the good situation that we have right now," Price explained.
""There will probably be some loss in state aid in 2013, but not as bad as last year," Business Manager Jon Novak further explained.
Raising the tax levy would be another option, according to Price.
"The area is still struggling," committee member Mark Sether said. "Things aren't turning anytime soon."
"If we moved $50,000 to Fund 80, I think there would be a slight increase (about 3 percent) in the tax levy," Novak said. "The alternative would be finding more funds in Fund 10 or decreasing expenditures."
Price noted that 12 teachers are eligible for early retirement, which could change expenditures for 2012-13.
Other factors affecting next year's budget include credit advancement for teachers, which could be a maximum of $43,650.
Price also noted that the I-S Auxiliary Association is not yet required to contribute to its retirement fund. A change in this status could potentially decrease the 2012-13 budget by about $30,000.
Another future expense is the purchase of a new bus for an estimated $100,000.
"I don't think we can neglect our fleet indefinitely," Price said.
The committee suggested that leasing a bus might be an option.
Novak said purchasing new vehicles has worked best because the district tends to hang on to its buses for 10 to 15 years.
"We need to know if the committee wants us to look at ways to save money and what areas we shouldn't consider for cuts," Price said.
Sether's opinion was that cutting teachers was not the best place to decrease the budget. He suggested the district look at cutbacks to building and grounds or the fitness center.
Price suggested that the seventh grade could be changed from three to two sections. Currently there are 48 students in two sections of the sixth grade.
"I would like to see how we can (trim the budget) and keep the same number of teachers," said committee member and board president Tom Opperman.
"We have to look at all areas," suggested board member Bruce Beyersdorf.
The committee discussed reducing expenditures in athletics or in all co-curricular activities.
"If you start eliminating, you risk having less students coming into the district and losing revenue," High/Middle School Principal Sara Anderson said.
District Administrator Joe Price presented this information to the district's Finance Committee on Jan. 9.
According to Price, the district's projected revenue is $738,000 for 2012-13, compared to $751,000 in 2011-12.
Price explained that the district's revenue limit will drop from $6.88 million in 2011-12 to $6.79 million in 2012-13.
The district will also lose $154,685 in revenue from the federal government's Education Jobs Fund, but gains about $36,900 in total per pupil adjustment aid from the state.
Price proposed that the Finance Committee consider using Fund 80, a special service fund that the district has not previously used.
He suggested that the district could levy money from Fund 80 to help run the I-S Community Fitness & Aquatic Center.
"It would be an appropriate time because we will save a little over $50,000 a year on (the recently refinanced) bonds, lowering the tax levy," Price explained. "If we kept Fund 80 at $50,000, it wouldn't impact taxes."
He noted that the downside would be that Fund 80 is outside the revenue limit and outside of state aid.
"You don't really lose state aid, just lose the good situation that we have right now," Price explained.
""There will probably be some loss in state aid in 2013, but not as bad as last year," Business Manager Jon Novak further explained.
Raising the tax levy would be another option, according to Price.
"The area is still struggling," committee member Mark Sether said. "Things aren't turning anytime soon."
"If we moved $50,000 to Fund 80, I think there would be a slight increase (about 3 percent) in the tax levy," Novak said. "The alternative would be finding more funds in Fund 10 or decreasing expenditures."
Price noted that 12 teachers are eligible for early retirement, which could change expenditures for 2012-13.
Other factors affecting next year's budget include credit advancement for teachers, which could be a maximum of $43,650.
Price also noted that the I-S Auxiliary Association is not yet required to contribute to its retirement fund. A change in this status could potentially decrease the 2012-13 budget by about $30,000.
Another future expense is the purchase of a new bus for an estimated $100,000.
"I don't think we can neglect our fleet indefinitely," Price said.
The committee suggested that leasing a bus might be an option.
Novak said purchasing new vehicles has worked best because the district tends to hang on to its buses for 10 to 15 years.
"We need to know if the committee wants us to look at ways to save money and what areas we shouldn't consider for cuts," Price said.
Sether's opinion was that cutting teachers was not the best place to decrease the budget. He suggested the district look at cutbacks to building and grounds or the fitness center.
Price suggested that the seventh grade could be changed from three to two sections. Currently there are 48 students in two sections of the sixth grade.
"I would like to see how we can (trim the budget) and keep the same number of teachers," said committee member and board president Tom Opperman.
"We have to look at all areas," suggested board member Bruce Beyersdorf.
The committee discussed reducing expenditures in athletics or in all co-curricular activities.
"If you start eliminating, you risk having less students coming into the district and losing revenue," High/Middle School Principal Sara Anderson said.
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