Indiana school funding will get second look

INDIANAPOLIS — Indiana school officials will have to wait a week to learn whether state lawmakers can cobble together an agreement that would ease some of the fiscal crises facing their districts.

Lawmakers, who had set Thursday as a tentative deadline to adjourn the 2010 General Assembly session, after hours of heated and fruitless debate behind closed doors in conference committees, emerged about 9:30 p.m. CST to say they were taking a week's break to cool off.

Among the issues they had been debating was an agreement that would allow school districts to tap into some restricted funds for operating expenses if school officials were willing to accept building conditions remaining as they are for at least a year.

And if they agreed to salary freezes, they would get even more help offsetting the funding cuts that Gov. Mitch Daniels announced less than three months ago.

Those looked like the basics of the deal being discussed late Thursday before talks collapsed.

Democrats who control the Indiana House and Republicans who lead the state Senate had said earlier in the day they were close to compromise on a bill that would allow schools to tap 5 percent of their capital projects funds for other uses.

Under proposals discussed Thursday, that amount could increase to 10 percent, as long as schools agree to certain limits on pay increases.

The Evansville Vanderburgh School Corp. expected to receive $142.8 million under the budget that passed in June, but that dipped to $136.3 million after the reductions.

Therefore, to fully replace the cuts, the corporation would need authority to move $6.5 million away from other expenses and into the classroom, said David B. Smith, the district's assistant superintendent of human resources and business affairs.

EVSC options

However, the legislation being discussed would free up only about $850,000 for Evansville schools, he said. That amount could double if the strings-attached portion makes it into the final bill.

"We welcome measures that would permit greater flexibility," Smith said, adding that the money already is allocated for this year.

If the 5 percent capital project fund flexibility is passed, the Warrick County School Corp. would be able to move $400,000 from its capital projects fund — well short of the $2.5 million cut it suffered because of the funding cut.

"If somebody's out there saying this will make up for all the cut, they're very mistaken," Warrick Superintendent Brad Schneider said.

The capital projects fund is paid for with property tax collections. It covers expenses ranging from building improvements to technology, such as new computers.

"There are roofs that need repaired, parking lots that need to be repaved, tracks that need to be resurfaced, carpeting that needs to be replaced," Schneider said.

Still, he said, he'll gladly take advantage of the added flexibility.

"I think every superintendent is going to be more than willing to do that. We're trying to minimize the impact to the classroom as much as possible," he said.

Making concessions

Schneider said he "could live with" freezes for employees who have reached the top of the pay grade and for salaried employees, as long as the incremental pay increases given especially to young teachers isn't capped.