Budgets and Bills

As a child growing up, my parents had six envelopes in which they kept money. The envelopes were designated for groceries, clothing, car expenses, household expenses, Christmas, and miscellaneous. My parents cashed their paychecks and distributed dollars among the envelopes. This was their way of budgeting.

The corporation budget operates much the same way. Instead of six envelopes, the district has seven funds. The money from various sources is placed into one of the designated funds. The funds are the general fund, capital projects fund, debt service fund, bus replacement fund, transportation operations fund, special education/pre-school fund, and debt service pension fund. Money from one fund cannot be spent for purposes designated for another fund. For example the district pays for a building from the debt service fund and pays for employee salaries and benefits from the general fund.

The preparation of the 2005 budget begins in June of 2004. By the third Thursday in September 2004 the board must adopt the 2005 budget. Those numbers are based on projections and estimates of assessed values, estimated expenses, and various revenues for the next 18 months. The final approval for that budget is supposed to be made prior to the beginning of the 2005 year. With re-assessment, the Department of Local Government has been late in certifying the budget.

Two weeks ago, the district received its budget order, the certified amounts that the district can spend out of each fund. As a result of that certification, the district will now have $117,038 less to spend in the general fund than the Board originally adopted in September of 2004. In the transportation fund, the district will receive $8,075 less then approved. In the special ed/pre-school fund, the district will receive $37,715 less then approved. The money in the special ed/pre-school fund is driven by the number of students enrolled on December 1, so that will not create a hardship for us. Its greatest cut came in the capital projects fund. That has been reduced by $872,000. Part of this reduction is caused by a new “envelope” called the debt service pension fund. The board has chosen to reduce its capital projects fund to pay off the pension bond debt. The district is required to cut expenses for this calendar year by those amounts.

These cuts come off the top; they do not include the short-falls that the district is currently experiencing as a result of the State being unable to meet its share of its monthly tuition support payment.

During the next few weeks, the district must estimate the impact of the legislature’s action and determine how it will live with in the new parameters.

This task is compounded by the potential passage of several bills moving through the legislature, whose financial mandates will shrink the amount of money available for supporting schools.

It is critically important that you contact Representative Heim (http://www.in.gov/apps/sos/legislator/search/) and ask him to vote “no” on Senate Bill 200. Senate Bill 200 is the Core 40 bill. It is a noble bill that could be supported if the dollars needed to implement the tenants of this bill were provided.

Senate Bill 231 is the Kindergarten entrance age date change. This is another bill that could be supported if the dollars needed to implement the change were provided. In its current form please encourage Representative Heim (http://www.in.gov/apps/sos/legislator/search/) to vote “no”.

Senate Bill 281 would provide transfer tuition/school vouchers/tuition tax credits. This bill has the potential to move millions of dollars from the public schools to the private schools. In its current form please encourage Representative Heim ( http://www.in.gov/apps/sos/legislator/search/) to vote “no”.

Senate Bill 371 is the professional standards board reorganization, increase in drop-out age/spring ISTEP testing bill. Many parts of this bill could be supported but, the unfunded financial liabilities of this bill will take money away from public schools. In its current form please encourage Representative Heim (http://www.in.gov/apps/sos/legislator/search/) to vote “no”.

Senate Bill 598, diverting common school and alternative education funds from traditional public schools to charter schools. The financial resources of the state are limited at this time. Money needed to fund this bill will be taken away from children of this district to fund charter schools in other districts. Please encourage Representative Heim to vote “no”.