Whiplash

The effect of last night's board meeting was whiplash, with plenty of good news followed by some grim realities.

Here's the good news: Central Elementary and Lebanon Middle School selected as four-star schools, LHS recognized in U.S. News and World Report as one of America's Best High Schools. This on top of Mr. Byron Ernest being selected Indiana's Teacher of the Year and LCSC's selection as an Exemplary school corporation in 2009.

Also, corporation CFO Charles Tait reported on finances. LCSC is operating with a healthy cash balance, money in the Rainy Day fund, even money left in holding corporation funds (these are left over from previous building projects) that allows us to do building maintenance and repairs. Our 2010 budget was certified by the state, which means we know what we're authorized to spend this year. Enrollment is basically steady, and our assessed value actually went up slightly.

Our tax rate was certified as well, and here's an interesting fact: since 2006 the local tax rate for the schools has gone down from $1.7625 (per $100 of assessed value) to $1.1242 in 2010. That's a decline of $.6383, or 36%.

Just when it feels like the best of times, the governor announces a $300 million cut to K-12 education statewide.

So here's the bad news: The state had committed general fund monies to LCSC. That amount will now be cut (starting this month) by 4.56%, which comes to $81,733.67 a month, for a 2010 total of $980,804.02. General fund dollars are the only source of teacher salaries, and 89.6% of our general fund is spent on wages, salaries, and benefits.

These cuts are permanent, and to adjust we'll be looking at permanent, structural changes to the budget.

Mr. Tait and Dr. Taylor reported that over the last 12 months LCSC has already cut more than $661,000 from general fund expenditures, including summer school, positions for five instructional assistants, seven certified staff, a school nurse, custodial/maintenance/grounds crew hours, professional development, and supplies. We have also changed banks and instituted energy savings measures.

Administrators are not receiving any salary or benefit increases this year, and classified staff (bus drivers, custodial, food service workers) are not receiving any cost-of-living increase. The Master Contract that sets teacher salaries is being negotiated right now.

Dr. Taylor is holding four meetings for all LCSC staff to inform them about the local impact of the cuts, and to get input about how to absorb them. Our strong financial position means we are not looking at sudden, draconian cuts, and we can combine some deficit spending with careful budget reductions. But as Mr. Tait said, "It will be necessary to trim our work force, adjust student programs, and evaluate every position in our school corporation to ensure we operate as efficiently as possible."

After the staff meetings, Dr. Taylor plans public meetings to answer questions and get ideas from the community. He anticipates bringing detailed recommendations to the board in March and April.

What are your questions about this situation? Where would you look to make adjustments? How should the board and the administration proceed?