Capital Access Forum: Providing access to capital

When Rockville Schools superintendent Randy Kerkhoff contemplates cutbacks in the number of central office administrators, his choices are 'me, myself and I.'

It's not really an option in this small, rural district. 'I'm the only one,' he said.

But with state cutbacks in K-12 funding looming, he is looking for other ways to cut the budget ' and everything remains on the table, including possible reductions in force.

Gov. Mitch Daniels said last week he will cut state spending on public schools by at least $300 million over the next 18 months to ensure Indiana does not have a deficit when the budget ends in July 2011.

At Daniels' request, the state's Board of Education is developing a list of options on how schools can collectively make those cuts without laying off teachers, including the possibility of wage freezes.

The state board will approve a 'Citizens Checklist' of costing-saving measures at its Jan. 8 meeting.

The options aren't mandates, but they can be used by citizens to make sure schools have used other alternatives before teacher layoffs, said Cam Savage, state Department of Education spokesman.

Kerkhoff said the district has implemented several cost-cutting measures. It has limited subscriptions to publications and reimbursement on travel; implemented measures to reduce heating and cooling costs; eliminated overtime and some district cell phones; turned to a third-party natural gas transporter to lower natural gas costs; and reduced one bus route.

Kerkhoff can't rule out a reduction in force, depending on how much state funding is cut. It would help if he could use transportation and building funds paid through property taxes to be transferred to classroom operating funds, he said.

Walter Hoke, superintendent of Southwest Sullivan School Corp., said the school district has a small cash balance and 'nothing is off the table' as far as budget cuts, including a possible reduction in force of either teaching or nonteaching staff.

Several superintendents have heard the cuts will be about 3 percent, which for Southwest Sullivan is about $360,000 of a $12 million operating budget.

Over the past several years, the district has used its cash balance to 'stay out of the red. It's not nearly as strong as we'd like for it to be,' Hoke said.

Some of the suggestions from the state Board of Education, such as wage freezes, 'are covered in collective bargaining contracts and must be negotiated,' he said.

The district is still working on a new teachers' contract. 'We didn't settle last year,' Hoke said. Forgoing a pay increase would lessen the possibility of layoffs, but it's not been discussed, he said. 'We want to work with the teaching staff and be as equitable as possible with them.'

South Vermillion superintendent Dave Chapman doesn't foresee the need to make personnel cuts this year.

'We've gone through RIFs the last few years,' he said.

He's seen a preliminary list of possible cuts from the state Board of Education, and noted, 'We've already begun to implement a number of those ' We're tightening our belts as far as we can.'

For example, the district is in a health insurance trust with a number of west-central Indiana school districts, which has helped rein in cost increases, he said.

The district is looking at its options and had an initial meeting Monday morning. 'It's a tough thing to talk about coming into Christmas break. The timing really stinks,' Chapman said.

Clay School Superintendent Dan Schroeder doesn't anticipate any need to cut staff this year or next year.

He doesn't want to comment on any possible cuts until he knows how much the district will lose in state revenue. 'No matter what cuts are made, it will always affect either programs or personnel. Cuts of any fashion are difficult,' he said.

Superintendent Dan Tanoos was critical of the governor and state board making suggestions to school districts on how to cut their budgets.

'Not only are they going to take your money, but they're going to tell you how to cut expenses,' Tanoos said. Local school districts know best where those cuts can and should be made, he said.

In Vigo County, 'The last place we look [to make cuts] is the classroom teacher,' Tanoos said.

Fortunately, the school district is in good financial shape now and he doesn't currently foresee any employee layoffs.

'We'll have to continue to tighten our belts' to stay financially healthy, he said.