KV School board votes 'No' on salary cuts

The school's budget, Krueger explained to the board , is $20 million. The nearly $1 million cut equals a five percent funding cut.

Krueger explained he is in negotiations with the teacher's union and they understand this is an urgent matter. He believes they will be able to come to an agreement soon.

In the meanwhile Krueger is looking to cut salaries of the non-certified, non-contracted and non-extra-curricular staff.

But the school board voted against cutting other salaries without also cutting teachers' salaries.

School board member Jason Wallace said, "I don't want to cut the little guy because it's easy. Wallace told Krueger to find another way.

Krueger said the school is losing nearly $80,000 a month while no decision is being made. The cuts must come from the general fund. Other than cutting academics, the next thing would be to fire people, a Reduction In Force (RIF). Krueger said this is a bad time to put people out of work, because the economy is bad and there are no jobs.

Wallace dismissively waved his hand at Krueger and said, "You say we have to have a Reduction In Force. I think your trying to scare everybody." When Krueger challenged Wallace or any board member to come up with a better plan, Wallace told Krueger that was his job, "You make good money to make these decisions."

William DeVries moved to approve the 5 percent cut, but explained he was uncomfortable with it. John Jungles seconded the motion saying it was one of the hardest things he's done as a school board member. But when the votes were counted only three were in favor, including Misch. Four were against. The vote did not pass.

Though contracted personnel are not included in the cuts, Krueger was going to voluntarily take a 5 percent cut, too, saying, before the board meeting "You can't expect others to take a salary cut if your not willing to cut your own."

But because the board voted no on the employee salary reductions, the board avoided all other five percent reductions on the agenda after that, which included Glenn Krueger's and Bill Orsburn's voluntary 5 percent reduction and a 5 percent reduction for all the board members.

The school's budget, explained Krueger is like individual stacks or silos. Each contains separate funds. The Capital Projects fund pays for building projects and repairs. Funds can not be transferred from Capital Funds and put into General Funds.

The General Fund is used for gas, heat, electricity, staff and teachers' pay and school supplies. It is the nuts and bolts of schools funding.

Krueger also anticipates things will get worse before they get better. The state is indicating this is going to be more than just a 12 month cut. They expect to have to cut the budget again next year. And political analysts have the same prediction. They predict more cuts coming for education as the economy continues to take a nose dive. State tax revenues have come in drastically less than what was anticipated. Governor Mitch Daniels has had to slash budgets across the state. State programs' budgets were cut; state employees took cuts; the state's fleet of vehicles was reduced, state college budgets were cut, and then lastly K-12 budgets took a hit. The K-12 budget was cut by the state by $300 million. That translated to a nearly $1 million cut to KV schools.

To help offset the financial loss, said Krueger, "More than likely we're going to offer early retirement. It comes out of our self-insurance fund - till they get to 65." Senior teacher's make an average of $65,000 per year. New teachers make on average $28 - $30,000. And Krueger said the self-insurance fund, which the retirement funds come from, is doing very well right now.

Krueger said after 45 years in this business, this is the worst economic situation he's ever seen.

Before the board meeting, Kureger said he also anticipates cutting subsidies to the driver's education program. He said it may still be offered, but the school probably won't subsidize it. Summer school might be very limited also. However, the high school level A+ program is expected to continue to be offered. It is an online program which offers replacement credits. But none of these were discussed at the board meeting after the discussion got heated.

"The school district is still exemplary and our academics are up there. The graduation rate is going to kill us, but we'll fix that," said Krueger, "We're still doing lots of stuff other school districts aren't."

Krueger did warn the board, however, that putting off these decisions brings drastic steps closer. "In 12 months you won't be able to make payroll," Krueger warned the board.