INDIANAPOLIS — Schools could face another round of funding cuts, the Indiana Department of Education has warned superintendents.
A memo, not publicized by State Superintendent Tony Bennett's staff but sent to school district leadership on May 11, alludes to the possibility of K-12 funding cuts similar to those Gov. Mitch Daniels ordered last year — 3.5 percent, or $300 million, statewide.
"We would recommend schools beginning the 2011 budget process assume (state funding) levels that represent percentage reductions similar to the 2010 reductions," wrote Lance V. Rhodes, the Indiana Department of Education's chief financial officer.
In the memo, Rhodes noted that no final calls have been made. Still, he said, schools should "budget cautiously and conservatively in case state revenue collections do not improve."
The state's education department said the memo should not be read to mean cuts are imminent.
"The statement at issue in Lance Rhodes' memo to superintendents was intended to encourage them to maintain fiscal caution as they proceed to craft their next budgets. The statement does not indicate that any additional cuts have been or will be made," said Bennett.
"This memo to superintendents was meant only to encourage school leaders to continue exercising caution and restraint."
The memo was distributed Thursday by the staff of Indiana House Speaker B. Patrick Bauer, the South Bend Democrat who has criticized the governor's priorities.
Daniels, meanwhile, has said education was the last area he targeted for cuts that became unavoidable as the recession sent state tax collections tumbling.
He has repeatedly said anyone who opposes the cuts should suggest increased taxes to better fund schools.
With control of the Indiana House on the line, Bauer said education will be a key issue in state legislative races this year.
"I do think education is something that they're attacking, and we're trying to help, and there are a lot of people in this state who still care about universal education," Bauer said.
Daniels said Wednesday that he hopes to pay teachers based on their talents. He and Bennett have criticized teachers union contracts that have led to young teachers being laid off, even if they're among the best in their districts, because of rules protecting older teachers.
Bauer, meanwhile, said Democrats "don't think the demonization of teachers is a good thing for education."
Democrats hold a narrow 52-48 majority in the House, while Republicans control the state Senate and occupy every other statewide office.
The two sides are fighting particularly hard this year because the recession has caused state tax collections to dip well below expectations. Unless there is a sudden uptick, the biennial budget will have to be crafted next year under that pressure.
Noblesville Republican Luke Kenley, the Senate Appropriations Committee chairman, suggested schools ought not expect the state to offer an influx of extra cash.
"As Indiana heads into a new budget-writing session, K-12 will surely remain our priority and the biggest slice of the pie," Kenley said Wednesday. "But we must all understand the deep national recession has now made that pie smaller for everyone."