Cedar Rapids school district will cut staff

Some Cedar Rapids school district teachers won't have a job next year.

The school board approved the 2010-11 budget Monday night, which eliminates $4.2 million in personnel costs.

Forty-nine full-time equivalent teachers and 10 full-time equivalent custodians will be cut. Exact numbers weren't available.

“We will have some staff receiving notices that they will not have a job next year,” Superintendent Dave Benson said.

The decision to reduce staff is based on the district's declining enrollment. However, board members approved the administration recommendation to increase the tax levy to $15.05 per $1,000 taxable valuation. This is a $1.13 increase over the district's current levy of $13.92.

Steve Graham, the district's executive director of business services, stressed that despite the increase, Cedar Rapids still has the lowest tax rate of all Linn County school districts.

The new rate is 62-cents less than what board members approved as the proposed tax rate last month. Administrators said at that time that the rate could decrease.

The new rate will, along with a change in the state's residential rollback, cost the owner of the $100,000 home an additional $67.27 in property taxes. Commercial property owners will see their taxes increase by $1,126.12 for property worth $1 million.

Board members asked Graham was impact the budget would face if the district didn't increase the tax rate. Graham said an additional $6.5 to $7 million would have to be cut, the equivalent of more than 100 jobs.

The district 2010-11 budget is $278.8 million.

Board members also discussed the State Auditor's Report in which former accounting clerk Jamie May was found to have embezzled nearly $600,000 from the district from 2002 to 2009.

May died from complications of breast cancer in November.

Graham outlined action plan steps at three levels - school board, audit committee and district administration - to strengthen internal controls. This includes increased checks and balances, and improved communication.

Graham said most of the recommendations made in the auditor's report will be in place at the start of the 2010-11 school year. Several suggestions, including the segregation of job duties, are already in place.

Board member Mary Meisterling said all Iowa school districts need to read the report and take note of its recommendations.

“Please, learn from us,” she said.