HANCOCK COUNTY — Business manager Tony Zurwell has 25 years experience in preparing school budgets, but he can’t help feeling distressed now as he strives to chart a responsible course for Greenfield-Central in an atmosphere of financial challenges. 

    “The last few years, there just has been an extra level of uncertainty,” Zurwell says, seated in his office at the G-C administration building earlier this week. “There are so many variables. The economy itself has such an impact. If they (at the state) don’t get the revenue, they can’t pass it on.” 

    Across the state, school districts were forced to take drastic measures to save money in response to the state cutting $297 million from the state K-12 budget in 2010. 

    Leaders at each of the four local public school districts share Zurwell’s concern as they move forward with their proposed 2011 budgets. 

    Approving a school budget is a lengthy and regulated process; in recent years, administrators have also had to react to significant changes in the school funding model. 

    A large chunk of each school district’s budget – about 55 percent in the case of G-C’s proposed 2011 budget – goes into the general fund. The largest among a school district’s funds, the general fund primarily goes to employee salaries and benefits. 

    Even as they react to budget cuts, administrators are also reacting to the tectonic shift in control of the general fund, now in the hands of the state. 

    “At one time in the not-too-far past, the local school district had something to do with the general fund where property taxes were concerned,” said Eastern Hancock Superintendent Randy Harris. “Now it is totally generated by the state of Indiana. We have no control over the revenue side. That leaves us to try and guess what the state is going to do. Are we going to get more cuts? Are we going to stay even? Are we going to get an increase with the stimulus money coming in? Those are the kinds of things superintendents are thinking about.” 

    Southern Hancock Superintendent Jim Halik hopes additional state funding cuts aren’t coming. He said Indiana school districts need time to recover from the 2010 budget cuts before they face more. 

    “To have any more would be completely devastating,” Halik said. 

    G-C Superintendent Linda Gellert feels good about her district’s work in slashing about $1.2 million in reaction to state budget shortfalls. 

    “I think that we’re on fairly solid ground this fall,” Gellert said. 

    However, Gellert adds that the district’s proposed budget is “tight” and “if there are additional shortfalls, we’re in trouble.” 

    With 740 employees, G-C represents one of the county’s largest employers. The district had 4,548 students last year. It now operates 11 buildings (eight schools, an administration building, a bus garage and a support services building) with the opening of the new junior high school. 

    Despite the district’s size, Zurwell must prepare a budget without knowing this year’s final enrollment numbers – even though enrollment plays a key role in the state’s complex funding formula. 

    This month, Zurwell presented a $53.9 million proposed budget to the board for 2011. 

    G-C and other districts across the state cushion themselves by advertising their budgets high (they can’t add money later to their budget request but they can subtract) – fully expecting to have them sliced down during the state’s review process. 

    Mt. Vernon will advertise a $41 million budget for 2011, up 9 percent from the district’s $37 million estimate for 2010. 

    “Do we expect to see an increase in our budget?” MV business manager Beverly Baugh said at a board meeting. “No, we advertise a very inflated rate as directed by the Department of Local Government Finance. With the budget crisis we are experiencing, we cannot afford to not receive every penny we can for every fund.” 

    One reason for MV’s increase in advertised spending is that the corporation must include in the budget an additional $1 million in property taxes whether or not voters approve the increase through an Election Day referendum. 

    Residents in the Southern Hancock district will vote on a similar referendum this fall. SH includes the extra $1.65 million in property taxes that would be raised in its budget of more than $29 million. 

    “I took the items where the (property tax cut) circuit breaker is affecting us in those funds, and I budgeted money from the referendum to solve that issue in all five of the funds,” SH Assistant Superintendent Bob Yoder said this month to the board. 

    Unlike neighboring districts, G-C doesn’t plan to ask voters for more money. Still, the district must contend with a trio of challenges. 

    First, G-C must make do without a new facility appeal the district received approval for in 2007. The appeal would have allowed G-C to take in more money in response to the opening of the new junior high. 

    “When the state took over the general fund, (the appeal) is gone,” Zurwell said, gesturing with his hands for emphasis. “That would have impacted planning and how we structured that project if we knew that we were going to have to pay the $1 million out of our general fund every year.” 

    A second challenge – one that’s shared by other districts – involves the so-called “circuit breaker” that caps property taxes for residential and other property. Zurwell estimates G-C lost about $750,000 due to tax caps. 

    Third, the state eliminated the preschool fund. While some claim the preschool money remains a part of state funding, Zurwell insists no one can show him where it went. 

    “We’ve got to provide those (preschool) services,” Zurwell said. “It’s mandated. General fund has had to pick that up. It’s about $300,000 a year.” 

    Local worry about school district funding isn’t limited to administrators; it filters down to employees across each district. 

    “They are obviously anxious,” Harris said of the EH staff. “Are we going to get more cuts, and are we going to have more layoffs? We’ve heard what the state money (for education) is going to be out of Washington, but we have no idea what the state is going to do with it. If I had any words of wisdom for the state it would be that we are building our 2011 budget today. Tell us what it’s going to be and stick with it.” 

    One large cost for local districts involves transporting thousands of students to school five days a week. 

    G-C operates 52 buses that transport an estimated total of 3,000 students a day. While the Indiana average for round-trip bus miles is about 1,500 miles per day, G-C averages more than 2,000 miles a day, according to G-C budget documents. 

    School buses average about 4.5 miles per gallon, according to G-C. While G-C hedges its costs by locking in fuel prices, the gas market’s fluctuations are constant and difficult to predict, Zurwell said. He adds that G-C spends more than $200,000 per year on fuel. 

    “We are very fortunate here with our transportation director,” Zurwell said. “He is very good at cost containment.” 

    G-C’s budget fixes included charging students for extracurricular activities. Another fix involved temperature control; the district will save money by setting temperatures that are warmer in the summer and colder in the winter. 

    Despite the uncertain path ahead, Gellert reiterates she thinks everything will work out in the long run. 

    “I’m the eternal optimist,” Gellert said Thursday. “The latest word from the governor’s office is no more cuts this year…. (We’re facing) unique challenges. We just want to be responsible to the taxpayers, to the students. We try to walk that balance. We’re walking a fine line there. We’ll do our best.” 

    Erin Meyer, Kristy Deer and Chris Speckman of the Daily Reporter staff contributed to this report.
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