Robert Herrington, Times Managing Editor
Noblesville Schools Superintendent Libbie Conner will present a recommended list of cost-saving measures totaling more than $3.4 million to the Noblesville School Board on Tuesday.
The list includes reductions in staff and operational costs and program adjustments (For a in-depth look at the reductions, see Friday's edition of The Times for Part II of this series). All measures impact the district's general fund. Conner said if approved, none of the adjustments would be made until the new financial year begins on July 1.
The recommendations come after an intensive study by the district's Budget Review Committee. That committee, which was formed in August 2008, is made up of teachers, classified staff, school and district administrators and school board members. The reductions help move the school district toward a total general fund adjustment of $9 million over four years.
Noblesville Schools' reductions started in the spring of 2009 when $2.1 million was cut from expenses in the 2010 budget. That round of cuts included 13 teachers, two Central Office administrators, and support staff. Conner added that energy use was curtailed, and the allowance for supplies and travel was reduced.
Since then, an additional unanticipated reduction in state funding - announced at the December School Board meeting - cost Noblesville another $2.3 million. In response to that reduction, all administrative and support staff salaries were frozen, and travel and field trips were eliminated.
"Our revenue from the state continues to decrease," said Conner. "At the same time, we are a growing school corporation and our costs continue to increase as we serve our additional students."
With the state's reduction in 2010 funding, Conner said this year's funding level is below the 2007 budget; however, enrollment since the 2006-07 school year has climbed nearly 700 students.
"Since our largest classes are in the elementary and middle grades now, the growth we have experienced since 2006 will continue as these larger classes move through our school system," she said.
Looking ahead, the school corporation said it will lose a $1.1 million restoration grant from the state in 2012. At the same time, Conner said the district expects increases in uncontrollable operating expenses of $821,740, teacher incremental salary increases of $1.5 million, and increasing insurance costs of $1.25 million.
"We are facing a total impact on our general fund of a negative $9 million from 2009 to 2012 plus any additional cuts made by the state," said Conner. "Because we are now funded by the state through its sales tax revenues, unless and until the economy turns around, we will see no increase in general funds from the state."
In school districts throughout Indiana, program cuts are under way as a result of significant reductions in school funding caused by declining sales tax revenues. The state of Indiana recently moved the school general fund from a stable property tax base to a sales tax revenue base. Because of the declining economy, sales tax revenues have fallen and that has resulted in cuts in state funding to schools.
"We aren't convinced the state revenue woes won't continue to be down and behind forecast," Conner said.
With $2.1 million of the $9 million reduction goal already achieved entering 2010, Noblesville Schools had $6.9 million left to cut from its expenditures. The recommendations Conner will present to the school board total nearly half of that - $3,412,324. She said these cuts will permanently increase class sizes and reduce program offerings if revenue is not raised through the referendum process to restore some of the lost revenue.
"That's why we are asking our community to restore $5 million through an operating referendum in May," said Conner. "The $5 million will restore part of the lost revenue and will offset a portion of rising costs that will accompany additional increases in student enrollment."