Budget cuts dig deep at Cedar Rapids schools

A higher tax levy. Increased class sizes. Changes in education and support service.

These are some of the changes taxpayers should expect to see next as the Cedar Rapids school district plans its 2010-11 school year budget.

Last night's school board meeting was the first of what will be many discussions on next year's budget.

The district lost $10 million in revenues this year because of a 10 percent budget cut in state funding and Linn County's tax abatement for flood victims.

The district will use cash reserves to cover the loss. Administrators identified several areas in the 2009-10 general budget to cut $3.3 million in spending, lessening the impact on cash reserves.

“Our focus is anything that is that a potential savings,” said Steve Graham, executive director of business services.

The cuts include transferring nearly $1.2 million in infrastructure projects from the general fund to the proceeds from the school infrastructure local-option sales tax.

Still, even with line-by-line examination of the budget, the district is set to have only $4.2 million in cash reserves at the end of the fiscal year. Graham said changes will be needed in next year's budget to replenish cash reserves in preparation for future losses.

He also said a higher tax levy is a given, as are larger classes.

About 80 percent of the district's budget is devoted to staff salaries. The district will consider reductions for non-teaching staff, the possibility of employee furloughs, and minimal wage and benefit increases.

Superintendent Dave Benson told board members everything in next year's budget is under review, including transportation.

The district is studying the economic impact of providing busing for Catholic school students, citing the Iowa City school district's recent decision to stop busing Iowa City Regina students next year.