The Vigo County School Corp. tonight outlined $5.5 million in spending cuts and revenue enhancements that involve three fewer elementary schools, selling the downtown administration building, cutting pay for top central office administrators and consolidating alternative education at the Booker T. Washington building.

The cuts, which are based on feedback provided at recent community meetings and would be implemented in three phases, were outlined at the end of tonight's Vigo County School Board meeting; the board did not act on the proposal.

Some cuts in Phase 1 of the plan already being implemented, while other "bigger pieces" require board approval.

"We're have tried to avoid layoffs and we're trying to protect the educational aspect of our operation," said VCSC superintendent Rob Haworth.

The recommendations, if approved, would be implemented over two to three years, which Haworth described as an ambitious timeline. The cuts are based on the assumption a $7 million operating referendum will pass.

If that referendum does not pass, Haworth indicated those needed cuts will increase to $8 million.

As far as school redistricting/consolidation, the district will create a voluntary Elementary School Reduction Task Force to identify school consolidation for Phases 2 and 3. It will include teachers, staff, administrators and residents and will "consider which schools will face redistricting and consolidation."

The district currently operates 18 elementary schools. "Most of our peers based on enrollment operate 11. We have a larger area-based footprint than our peers, so 11 would be inappropriate for our district, but consolidating elementary schools is in our future," Haworth said.

Vacated school space would be used for office space, for for-profit daycares or for other uses identified by the school board. Displaced staff would fill open positions caused by retirements and resignations.

As part of Phase 2, the administration building located at 686 Wabash Ave. would be sold and offices relocated to one of the repurposed buildings.

The cuts are in response to the district's declining cash balance, which has gone from $33.8 million in 2016 to a projected $13.5 million by the end of this year.

The reasons for the cash balance decline include enrollment loss, state funding that is not keeping up with inflation, declines in federal funding and staffing increases related to safety, health and wellness.

The district has a $7 million operational referendum on the ballot this fall, which would increase property taxes for eight years. It would support school safety, student health and wellness, transportation and teacher compensation, especially for beginning teachers.

Haworth described the referendum as a "bridge" while the district takes steps to right-size based on declining enrollment.

Key spending cuts proposed tonight include:

• Reduction of administrative costs: $20,000 reduction in superintendent compensation; 4.75 percent salary cut for top central office administrators, including the deputy superintendent, director positions and curriculum coordinators; reduction of administrative positions through retirement/resignation.

• Consolidation of 18 elementary schools to 16 in Phase 2.

• Consolidation of 16 elementary schools to 15 in Phase 3.

• Alternative education redesign: Booker T. Washington hosts alternative education; traditional high schools host self-contained special education rooms; repurpose McLean for information technology staff, office space and potential lease/for-profit daycare.

• One year pause in bus replacement plan.

• Scrutiny of every position upon retirement.

Key revenue enhancements would include expansion of the Vigo Virtual Success Academy to K-12, then beyond Vigo County. Also, begin an International Exchange program in which enrolled students would pay tuition.

Cutbacks, by phases, are as follows:

Phase 1

Phase 1 cuts and savings include $450,000 in administrative cost cutting and an alternative education transition plan that brings $500,000 total savings over Phases 1 and 2.

Booker T. Washington High School and Vigo Virtual Success Academy will host the alternative education programs moving forward. McLean Education Center staff will not lose their jobs. They will fill open positions throughout the school corporation, including new positions at Booker T. Washington and in special education classrooms at the traditional high schools.

Other Phase 1 cuts: Eliminate take home cars; forego planned purchase of a new truck and equipment in buildings/grounds; reduce planned capital projects by $250,000 over 2019 expenditures.

Also, for one year only, extend current bus replacement timetable and forego $1.5 million in spending on new school buses.

During Phase 1, the Elementary School Reduction Task Force would be formed to identify school consolidation for Phases 2 and 3.

Other savings would be achieved through energy conservation; in personnel by reducing full-time equivalency by $175,000 through resignations and retirements; reducing contracted services by $150,000, relying on in-house staff to perform that work.

Additional savings would be achieved by locking in fuel/natural gas prices for three years; reducing paper use; improving procurement strategies; increasing bus route efficiency; adjusting pre-K fees to ensure all corporation costs are covered by Title 1.

Under revenue enhancements: Expand the virtual school to K-12 for Vigo County students and market facility rental options in buildings.

Phase 2

The district will consolidate 18 elementary schools into 16, and central administrative offices will be relocated to existing, repurposed school space. Other cuts/savings would be realized through reduced energy consumption; reduced paper use and transportation efficiency.

Revenue enhancements would come through launch of International Residency Program; expand Vigo Virtual Success Academy beyond Vigo County; continued marketing of facility rental options; expand for-profit daycares by both leasing space in our buildings to existing providers and VCSC-run daycares.

Phase 3

VCSC would consolidate 16 elementary schools into 15. Also, Covered Bridge Special Education district offices, now leased, would be relocated to VCSC-owned space. The lease is up in 2021.

Above mentioned savings measures would continue to be implemented.

The state of Indiana has identified eight fiscal/qualitative indicators of a school corporation’s health, Haworth said. The spending cuts are necessary to help meet those indicators. School corporations that do not meet the indicators risk being placed on a state watch list.
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