Wabash Valley school districts making tough cuts as enrollments fall

The news for the upcoming two years isn’t much better. Under the new state funding formula, the district is projected to lose about $512,000 the first year and another $200,000 the second year, says Superintendent Mark Baker.

For the 2014-15 school year, it had 17 fewer staff members — the result of 12 retirements and five layoffs. For next year, the district is cutting an additional six teachers — two have left the district and won’t be replaced, and four others are leaving through a reduction in force.

The district now has about 925 students and a $6 million general fund budget. Under the state funding formula, money follows the child; in general, more students means more money — fewer students means less money. Other Wabash Valley rural districts losing enrollment are looking at staffing cuts, facilities and other measures.

Baker hopes the latest round of cuts and student enrollment in August “will balance, and we’ll walk the tight line like other districts are doing.”

But looking to the future, rural districts that continue to lose enrollment will have to continue looking at cutting staff and programs. And at fewer buildings. And potentially at consolidation with other districts, Baker said.

Other districts making tough decisions, weighing options

Other rural Wabash Valley districts also are having to make tough decisions and look at future options.

• North Vermillion Community School Corp. is looking at staff reductions, while South Vermillion schools are redistricting elementary students, a move that allows for fewer staff members through attrition. Boards at both school districts are meeting Monday.

• Meanwhile, a study suggests that Rockville and Turkey Run high school programs — both in Parke County — be combined and offered at the Rockville secondary facility (grades 9-12). Under the proposal, Rockville and Turkey Run would maintain their elementary schools, but each would have a K-8 configuration. The North Central Parke School Corp. board has not discussed or acted on the findings.

The challenges faced by small, rural districts aren’t limited to the Wabash Valley. Other rural school districts in the state also are feeling the financial squeeze, resulting from a state funding formula in which money follows the child, says Dennis Costerison, executive director of the Indiana Association of School Business Officials. 

Changes in the complexity index, which provides additional funding based on students in poverty, also could adversely impact rural districts, he said. In addition, there used to be a process (called de-ghoster) enabling districts to gradually absorb funding cuts for enrollment loss. That is now gone.

A few years ago, there was a lot of talk about school district consolidation, but there is “very little talk” about it now, Costerison said.

“But what the General Assembly is saying is that if you are a smaller district and continue to lose enrollment, you need to look at alternatives,” he said. That might be consolidation, or shared services with neighboring districts. For example, two districts might share a director of transportation and director of food services.

Rural school districts are being asked to find ways to be more efficient, although “many times there is no way to become more efficient,” Costerison said. Some districts might seek additional operating funds through a referendum, but that is subject to a vote and doesn’t always go over well with taxpayers.

South Vermillion looks at redistricting

Earlier this year, South Vermillion School Corp. had looked at reconfiguring elementary schools, with Van Duyn and Ernie Pyle to serve students in grades prekindergarten through 2, while Central would then educate students in grades 3-5. After many residents expressed concerns, the board wanted to look at options.

The district is now taking a different approach. It is redistricting at the elementary level so that Van Duyn and Ernie Pyle will gain students, and Central Elementary will have fewer students. The move evens out enrollments at the schools, and the district will be able to reduce staff through attrition. “We’re not RIFing anyone,” said Superintendent Dave Chapman.

About 70 to 80 students are being redistricted from Central to the two other schools, which will leave Central with about 300 students next year. “We will have three schools with more balanced class sizes,” he said.

Changes in state funding are forcing rural districts to make changes they don’t want to make. “It doesn’t matter what we do, someone will be upset. That is a problem we are all facing. It’s not that we want to make these changes, but our hands our forced,” Chapman said.

The current funding formula “hurts small, rural districts,” he said.

Some believe it is a “master plan” to force small districts to consolidate, but in some cases — including Vermillion County — it is not geographically feasible. While merging central offices might be an option, combining schools in the long, narrow north/south county “is not good common sense,” Chapman said.

If consolidation had to occur, many North Vermillion students would be closer to Covington or North Central Parke schools — located in different counties — than South Vermillion schools, he said.

North Central Parke Community School Corp.

In North Central Parke — which a few years ago combined Turkey Run and Rockville school districts — a consultant’s report examining demographics and facilities suggests that Turkey Run and Rockville high schools be consolidated into a single high school serving grades 9-12 at the Rockville secondary facility. Meanwhile, the report suggests respective Turkey Run and Rockville communities would each maintain elementary schools, but reconfigured to serve grades K-8.

The board has received the report, but it has not discussed the proposal, said Tom Rohr, North Central Parke superintendent. A meeting to discuss it is expected later this summer.

According to the report, the two districts that combined to form North Central Parke have experienced declining enrollment for the past 15 years “and there is nothing on the horizon that looks like that will turn around,” Rohr said. That trend, combined with the state funding formula, means reduced funding because money follows the child, Rohr said. “We can’t continue operating the same way we have been.”

The report also suggests “that for us to be able to offer the kinds of programs that our students deserve and what’s common in many other larger schools, we have to make some pretty serious decisions about how we want to offer education in the Turkey Run/Rockville area,” Rohr said. “We need to do something.”

In the 1970s, Turkey Run and Rockville — then separate districts — had about 1,000 students each. Currently, Turkey Run schools have about 560 students and Rockville schools have about 740.

North Central Parke’s general fund budget is about $9 million; it has 95 teachers and about 175 to 180 total employees.

What’s happening to rural districts in terms of funding is “discouraging because I’d like to provide the same academic programs as larger schools do and we’re just not able to do that,” Rohr said.

It’s also challenging making cuts when loss of students is spread throughout grade levels, he noted.

“Let’s say we lose 12 students — 12 times $6,000 is what we lose. Let’s say that’s spread over 12 grade levels. How can you cut that amount of dollars when you only lose one student per grade level? You still need staffing, heating and air conditioning for rooms and custodians to clean the schools ... None of our costs go down just because they give us less money,” Rohr said.

Another concern is that rural districts may have to cut extracurricular programs; school districts typically pay stipends to coaches and sponsors for athletics and other activities. “Our corporation pays close to $300,000 for extracurricular programs,” he said.

If those programs are cut, students will transfer to other districts that offer the programs because they want to participate in athletics, academic competitions and student organizations, Rohr said.

While state projections indicate the district’s revenues will increase slightly over the next two years, Rohr has concerns that actual enrollment will decline and reduce those projections.

North Vermillion Community School Corp.

North Vermillion is preparing to make significant personnel reductions for the next school year to cut costs, interim Superintendent Ed Eiler has said. The district’s school board will consider cancellation of teacher contracts when it meets Monday.

The reduction in force would affect four teachers, and another certified staff member who is resigning will not be replaced, Eiler said. Also affected are several non-teaching staff members, including custodial, teacher aides and administrative assistants.

The personnel reductions represent “significant cutbacks,” said Eiler, retired superintendent of the Lafayette School Corp. They will generate about $500,000 in savings.

The cutbacks are necessary because of declining enrollment and less state revenue. By law, teaching contracts must be canceled by July 1.The teaching staff reductions disproportionately affect the elementary level, he has said.

In the longer term, the district must make about another $250,000 in cuts, Eiler said. At least part of it could be achieved through future resignations and retirements, either by not replacing staff or hiring less expensive replacements.

The district’s general fund budget is about $4.3 million. In 2008, it was $6.1 million .Eight years ago, the district had 770 students in grades K-12; last fall, enrollment was at 678, and this February the student count was 696, a district official said in April.