Districts look at cuts, sharing, as state money worries grow

Most Eastern Iowa school administrators and school boards are worried about their district budgets and, aware of the state's declining revenues, anticipate little or no increase in state aid for the 2010-11 school year, a Gazette survey finds.

Most districts - like Cedar Rapids - are using cash reserves to cover the 10 percent mid-year state budget cuts ordered by Gov. Chet Culver in October. Others - particularly small rural districts - don't have those reserves.

“We have a negative cash balance already,” Vinton Shellsburg Superintendent Mary Jo Hainstock said. “It is not an option to use reserve funds.”

The situation is forcing some of those districts to plan for layoffs, program cuts and possible mergers or sharing agreements with other districts starting with next school year.

In Independence, the school board on Monday night will review a budget-reduction plan that would close an elementary school, shift middle school students to the high school and cut more than 10 full-time staff positions. The plan would cut more than $1.4 million over the next two years for the district, which will end this school year $300,000 in the red.

In other Eastern Iowa school districts:

-Central City - Teachers voted to reduce their contracts by two days and to take furloughs this year.

-Iowa City - The district will no longer pay to bus students to Regina, the private school system.

-Mid-Prairie - The district delayed buying $80,000 in textbooks, cut $30,000 in overtime and cut building, athletics, transportaiton and other budgets.

-Vinton-Shellsburg - An early retirement package is being offered, with some teaching positions eliminated.

-West Liberty - The district will borrow cash to cover July and August expenses; it is cutting building supplies and travel.

-Williamsburg -Administrators and non-certified staffers are taking furloughs. Textbook purchases have been delayed, energy-saving measures have been taken and one bus route was reduced.

The problem with cutting a school budget, educators note, is that about 80 percent of the budget is tied to employee wages and benefits.

In The Gazette's survey of Eastern Iowa districts, some superintendents are worried state aid to schools next year will be even less than it was this year.

Historically, Iowa lawmakers protect education funding - which consumes about 60 percent of the state's annual budget - in times of economic crisis. That's no longer an option, legislative leaders have said.

The 10 percent cuts Culver ordered in the 2009-10 budget will not be restored. Among the options left to schools: cover shortfalls by using up reserves; raise property taxes; cut programs and classes; cut staffers; increase class sizes; or pursue mergers or sharing arrangements with other districts.

Some experts predict 30 to 50 districts - out of Iowa's 361 districts - will merge in the next five to seven years. Already, 31 superintendents in Iowa now manage more than one school district, with such sharing arrangements common among smaller districts.

“I think the more we can do with sharing, the better,” Sen. Bob Dvorsky, D-Coralville, said. “Maybe (the budget) will be an emphasis to keep looking at that.”

The Olin school district, with 227 students, recently signed a three-year sharing agreement with the Anamosa school district that allows Olin High School students to take elective courses at Anamosa High School.

Olin Superintendent Jayne Richardson said the agreement, which was under way even before this year's state budget cuts, will help the district's finances.

“Our students are getting a larger selection, more options than they would have otherwise,” Richardson said. “I think schools are going to have to start working together more, given the state of things.”

In Vinton-Shellsburg, school board members cut more than $410,000 from this year's $14.2 million budget. They eliminated teaching positions in high school social studies, business, physical education and elementary art. They discontinued alternative kindergarten, eliminated some extended contract days and cut teacher associate contracts by two days.

Culver's 10 percent cut meant an additional loss of $850,852.

“It's always difficult to make cuts,” said Hainstock, who is in her first year as superintendent. “It's difficult on another level this year because there's nothing easy to cut.”

Staffers have taken home small personal refrigerators in an effort to save electrical costs and are also looking for ways to reduce photocopy needs. A hiring freeze is in place.

The board approved an early retirement package, with a payout equaling 40 percent of an annual salary. Thirteen staffers, paid $725,000 in wages and benefits, were approved for the buyouts, which will cost $300,000 to implement. The district will determine which of those positions must be filled and which will be not be filled.

The district's enrollment, now at 1,798, is

200 less than it was

10 years ago, which means a loss of state aid.

“We lost ten percent of our kids,” Hainstock said. “It's a huge change.”

Area Districts Response

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