BY ANDY TAYLOR
chronicle@taylornews.org

INDEPENDENCE — A delegation of Independence school district residents, teachers and school board members gathered Tuesday for the first of three meetings designed to address the impending cut of $700,000 in state funds for local schools.

The meeting was convened at the request of Superintendent Chuck Schmidt so that the community can guide the school board on dealing with the $700,000 budget reduction for the 2010-11 and 2011-12 school years. Another community meeting is scheduled for 6:30 p.m., Tuesday, March 15 at the Eisenhower School Library; a final meeting will be held at 6:30 p.m., Tuesday, March 29 at the Eisenhower School Library.

Schmidt was joined by USD 446 business manager Fred Meier in explaining how the $700,000 budget reduction came about and how the school district spends its money each year. They provided handouts to all committee members showing a summary of the school district’s 2010-11 budget that was approved last August.

Shown below are questions and answers about the budget situation confronting USD 446 using information and comments gleaned from Tuesday’s meeting.

Q. How did USD 446 derive a $700,000 budget reduction for the 2010-11 and 2011-12 school years?

A. The sources of the budget cuts are varied but are based on three primary factors:

• a reduction in student enrollment,

• decisions by state lawmakers to reduce the amount of money provided to schools based on each school district’s student census (that census is also known as base state aid per pupil, or BSAPP), and
• elimination of federal stimulus money at the state government level that was used to supplement state revenues in the wake of a spiraling economy.

Q. Have attempts been made to reduce expenses prior to this $700,000 budget reduction?

A. Yes. Superintendent Chuck Schmidt said cuts have been made in the following ways:

• Elimination of staff appreciation events.

• Reduction of 1.5 administrative positions.

• Reduction of 2.5 classified staff positions (such as secretaries, aides, janitors, cooks, etc.).

• Reduction of 3.5 teacher positions.

• Reductions in the athletic budget.

• Elimination of the Kids CREW program.

• Reductions in computer cleaning.

• Delayed purchase of new textbooks.

Q. Has USD 446 already faced budgetary reductions in previous years?

A. Yes. Expenditures in USD 446’s combined general fund and Local Option Budget in the 2008-09 school year was about $15.64 million. Those expenditures dropped to $14.78 million for the 2009-10 school year. In the 2010-11 budget year, the combined general fund and Local Option Budget is forecasted to be $14.70 million.

Q. How much money does the State of Kansas provide to local schools?

A. The State’s financial assistance is based on student census, also called the base state aid per pupil, or BSAPP. That system of school finance was created in 1993 and originally was alloted at $3,600 per pupil. That BSAPP amount rose steadily until it reached $4,400 for the 2008-09 school year but has faced stiff reductions in the past two years. For the 2009-10 school year, the BSAPP was $4,012 per pupil and could drop to about $3,800 if Governor Sam Brownback’s education financial proposals are approved by the Kansas Legislature.

That 1993 finance law imposes a 20-mill levy on all property in Kansas. Each school district is allowed to supplement their 20-mill levy with an additional levy called a Local Option Budget (LOB), which cannot exceed 30 percent of each district’s general fund. USD 446 is at 27 percent of its LOB limit (roughly 18.5 mills).

Q. Why can’t the school board just cut programs and activities rather than cut teachers?

A. Contrary to popular myth, the total amount of money for activities, which includes salaries for coaches, club sponsors and program advisors, amounts to $405,000. The total USD 446 budget for 2010-11 is $26.9 million. To eliminate all activities would, undoubtedly, save the district $405,000 but falls $300,000 short of the $700,000 total budget reduction in state funds and reduced enrollment funding.

Additionally, elimination of activities may jeopardize future enrollment as students find other districts to attend.

Q. What are the options for dealing with the $700,000 budget reduction?

A. That’s the charge of the committee — to develop a concept of what is the most palatable for USD 446 patrons as the school district deals with a $700,000 budget reduction. The school district can eliminate staffing, reduce payroll, eliminate programs, or raise revenues, such as student participation fees or local taxes. Each option presents many pros and cons.

Q. Does USD 446 have a fund for cash reserves?

A. Yes. USD 446 maintains a contingency or reserve fund that has $445,000. That money is set aside for various purposes, including unexpected structural issues, such as roof replacement, heating-air system replacement, or to cover the cost of payroll whenever the State of Kansas delays its allotment of money to local school districts. The State has delayed payments in recent months, thus forcing all districts to dip into their reserve funds to cover expenses.

Q. How long will this budget crisis affect USD 446?

A. Superintendent Chuck Schmidt said USD 446 should prepare to face at least three years of either reductions in state financial assistance plus reduced enrollment caused by a struggling economy.

Q. What is the average salary for a USD 446 teacher and principal?

A. The average salary (including health insurance benefit) for a USD 446 teacher is $50,860. The average salary for a USD 446 principal (without health insurance) is $91,500.

Q. What percentage of the USD 446 total budget is comprised of salaries and health benefits?

A. Between 75 to 80 percent.