School districts could get some relief with funding

With state funding to local school systems being reduced because of the shortfall in revenues, schools can transfer money from the capital improvement to the general fund through October 2011.

The Indiana Legislature has approved a bill that allows school systems to transfer between 5 and 10 percent from capital improvement funds to preserve and protect educational programs. The transfer can be 10 percent if there is no general wage and salary increase for the 2010-2011 school year.

Local school superintendents are pleased the Legislature has provided some flexibility when it comes to funding alternatives.

Ryan Snoddy, superintendent of the Northwestern School Corp., said the ability to transfer will help offset the shortfall in state revenues to the general fund.

Snoddy said the amount that will probably be recommended to the school board for transfer will make up less than 25 percent of the projected shortfall.

Northwestern’s funding from the state for general fund operations was reduced by approximately $450,000, he said.

“We could probably transfer up to 10 percent, but we can’t afford to go that high,” Snoddy said. “We will recommend to the board a transfer of 5 percent, which will amount to between $105,000 and $110,000.”

Snoddy said the allowed transfer would save one or two teaching positions.

“I’m thankful for the flexibility,” he said. “This has happened once or twice in the past.”

Snoddy said he agrees with the cap on the amount that can be transferred and the time limit.

“I understand the need to have those funds dedicated,” he said of the capital improvement fund. “We need to keep up our buildings and grounds.”

Superintendent John Magers with the Taylor School Corp., said the school system will wait until the end of the fiscal year on Dec. 31, and then make a decision on the transfer of funds.

“I would image we will transfer some funds,” he speculated. “It’s a good thing. We would be able to transfer 5 percent.”

Magers said state funding to Taylor schools was cut $443,500 and a 5 percent transfer would amount to an estimated $50,000.

“It’s always good to have local control,” he said. “This year we don’t plan to RIF [Reduction in Force] anyone. We’ve done a good job the past six years in getting our finances back to where they should be.”

Sen. Brandt Hershman, said he has not heard of a single school system that won’t transfer the funds.

“The transfer is for a temporary emergency,” he said. “No one expects it to be long term.”

Hershman said state officials hope the economy rebounds by 2011 and state revenues meet projections.

Rep. Ron Herrell said the transfer is to allow the schools to cover the shortfall, and an estimated $82 million statewide will be moved to the general fund.

“All the schools in my district will transfer funds,” he said.

Herrell expressed concerns that the state was cutting education funding at a time unemployment is high.

“I’m disappointed we’re still building roads around Kokomo through Major Moves and losing teachers,” he said. “Where is the net gain? Why would you encourage people to bypass your city?”

Herrell said the state has to decide whether it will properly fund public education and expects it to be a campaign issue leading into the 2011 budget session of the Legislature.