Iowa City schools face budget cuts, Regina busing questions

Iowa City school administrators still want the district to stop busing Regina students as a money-saving measure, and a new budget projection released Friday may help drive that point home.

The district will have to cut at least $1.4 million for the year that begins July 1, according to the district-compiled projection.

Those cuts would come on top of the $3.4 million in reductions the district made earlier this year.

“Economically, these are extremely challenging times,” Superintendent Lane Plugge said.

The school board will review the budget projection at its meeting Tuesday.

It also could vote on what do about busing for students at Iowa City Regina, a K-12 private school.

Plugge is recommending the district stop providing busing for Regina students, a move that would save the district about $260,000 annually.

Instead, he wants Regina families to be reimbursed by the state for transportation costs or send to Regina the state transportation dollars the district gets, and then Regina arranges for its own busing.

Regina President Carol Trueg said she didn't like either option and said she doesn't believe Iowa City school officials fully explored how to find cost savings in the current system. She said Regina officials have not discussed whether the school would be willing to contribute toward the transportation costs.

Plugge has admitted the move is all about money for Iowa City as it struggles with the recession and state budget cuts.

On the budget projection released Friday, Plugge would not go into specifics about where the cuts may come from and said he was not sure if jobs would be eliminated.

The contract with the teachers union expires this summer, and negotiations will begin soon. The budget projection includes scenarios with 0 percent to 4 percent salary and benefit increases.

It also factors in varying levels of allowable growth, which is the amount of new state money districts receive per student. The state has already set allowable growth at 2 percent for next year, but local officials are pessimistic it will be fully funded given the state's budget woes.

Even if allowable growth is 2 percent and there are no wage increases, the district is looking at $1.4 million in budget cuts. If allowable growth drops by 2 percent and compensation jumps by 4 percent, $7.4 million in reductions would be needed.

The district will have a better idea on what its budget will look like as the state releases more financial information in the next couple of months.