Guv cuts $366K from school by Gregory R. Norfleet · News · October 14, 2009
The governor’s across-the-board 10-percent budget cuts will slash about $366,000 from West Branch Community School’s state funding, which the superintendent said must be absorbed until the 2010-11 school year.
Gov. Chet Culver announced the cuts Oct. 8, one day after the Revenue Estimating Conference projected state revenues would fall short by $414.9 million, or 8.4 percent. The governor’s 10-percent cut amounts to about $565 million.
“(That is) well above what is needed to balance the budget,” state Rep. Jeff Kaufmann wrote in his October newsletter.
Culver said in a statement that he will ask the legislature to “backfill” funding to basic health care services, public safety and workforce development if the REC’s December estimate shows no further drop in revenue estimates.
The $366,000 is based on West Branch school’s general state funding. Its total budget is about twice that, $8.23 million.
“Those are pretty deep cuts,” Superintendent Craig Artist said. “That takes a big bite.”
With contracts already in place for this school year, the school will look at other areas where it can save money, but “there’s not much we can do specifically,” he said.
The school district has some cash reserves it can dip into, he said, “for instances like this.”
“I don’t think we have to borrow the money, but it will dig deep into (those reserves),” he said.
The school board meets again 5 p.m. Oct. 20 and Artist said the cuts will no doubt be part of the discussion. Other than using reserves, the board may consider raising revenues or trying to conserve energy, supplies and “all those kinds of things that go into a school budget.”
Culver said he will direct schools to use reserves to cover expenses; Kaufman said that means a “potentially huge increase in property taxes.”
“The governor says he will direct schools to use their reserves first, but even if this happens, property taxes will be raised to refill the reserves,” he said.
The 10-percent cut ordered last week follows a 1.5-percent cut by Culver in January for the same reason — lower state revenues predicted by the REC. That amounted to $49,600 lost in state funding for the local school, which Artist said was also absorbed.
“With this, it drives us even deeper,” the superintendent said.
He said he is not sure it will amount to layoffs, but it may mean not replacing someone who resigns or retires.
There is also a possibility that Culver’s cuts “may not stick,” Artist said. The legislature will reconvene in January to consider how to spread out the decrease.
“I hope we can get through this without too much disruption,” Artist said. |