Dave Stafford, Herald Bulletin Staff Writer
ANDERSON, Ind. — If Anderson Community Schools does nothing and its finances continue as expected, the school corporation will compile a deficit in all funds of $22 million by the year 2012, according to a report the schools posted online Wednesday.
Even if conditions improve to a best-case scenario — no tax shortfalls, declines in enrollment, increases in health care costs or declines in state support — ACS still would have a budget gap of $11.2 million in 2012, the report says.
“The numbers are pretty dire in terms of our expenses and revenue drop,” Superintendent Felix Chow said. “It’s not that we are spending a lot of money, it’s that all of a sudden revenue dropped so fast.”
The forecast shows that without action, ACS will be unable to pay its bills by the second half of 2012.
“It’s very real,” Chow said, noting that a letter was being sent to Indiana Superintendent of Public Instruction Tony Bennett “alerting him that this is our forecast.”
The best-case scenario outlined in the report requires agreement by the Anderson Federation of Teachers. President Rick Muir said the union and school administration have been discussing possible teacher union concessions. Neither Muir nor Chow commented on specific proposals to save money at the bargaining table.
“Yes, we are being asked to consider some things, and yes, we have presented them a number of things they could do to save money that they are considering,” Muir said.
The forecast notes that since the loss of guaranteed state revenue in 2005, actual general fund revenue is projected to decline by nearly $22 million in 2011, compared with revenue growth that would have been expected under the guarantee.
“We’re being forced with decisions that are going to cut offerings to children and cause damage to the educational environment,” Muir said. “People need to speak up to their state legislators, the governor, Tony Bennett and demand their schools not be harmed.”