Outlook improves

The financial outlook for Jay School Corporation is a little brighter than was expected just a few months ago.
Jay Schools business manager Brad DeRome told Jay School Board at its meeting Monday that he now projects a $192,000 general fund budget surplus for 2016. If that holds true, it would break a pattern that has seen the corporation’s general fund balance slip from more than $3 million in 2011 to $1.68 million at the close of 2015.
DeRome’s original estimates during the budget discussion and approval process in August and September projected the corporation would have a $263,000 general fund budget deficit this year. He said Monday the shift by nearly half a million dollars came because of further staffing cuts and changes to the state funding formula.
For example, the latest estimate projects $7.1 million in spending on benefits, which is down about $173,000 from the original forecast. Meanwhile, the state basic grant is now expected to come in at $24.2 million, an increase of about $563,000 from the August projection.
Fielding a question from board member Greg Wellman, DeRome noted that staff cuts made during the summer only affected the 2015 budget late in the year.
“Now you’re going to start seeing the full impact of that, because any of those reductions that we’ve had on certified staff members, they were still on our payroll through August of 2015,” he said. “So you don’t get the full impact of reduction of certified staff until you get to the calendar year where we’re at now.”
Jay Schools had slight general fund budget surpluses — all less than $12,000 — in 2010, 2011 and 2014. It had deficits of nearly $300,000 in 2012, more than $800,000 in 2013 and $341,000 last year.
Wellman offered his assessment of the new projections that indicate a 2016 surplus, saying it seems the corporation has “turned the corner” from being in a position of needing to spend down its general fund balance.
“A few years ago I was one of those people that said the reason you have a cash balance is to help you through the tough times,” he said. “And I think that’s what we’ve seen happen.”
Discussion over the past year focused heavily on the need to make budget cuts, including the possibility of closing schools.
A building study presented to the board in September offered several cost-saving options, including plans that would have closed Pennville, Judge Haynes, Westlawn elementary schools. Proposals also involved the possibility of moving all eighth graders in the corporation to Jay County High School and all sixth and seventh graders to East Jay Middle School.
Given the numbers presented Monday, Wellman expressed doubt about whether such drastic moves are necessary. He said the question of whether or not to close schools to save the corporation from financial ruin is different from doing so to rebuild the general fund balance.
“I think that we’re not in ‘We have to save the corporation’ mode anymore,” he said. “Now we’re still in terrible, bad shape, and we have to make tough decisions, but there’s a difference between ‘We have to save the corporation’ and ‘OK, we’re heading in the right direction, let’s make the right decisions to keep that going …’”
In other business, board members Kristi Betts, Beth Krieg, Mike Shannon, Cory Gundrum, Tammy Bennett and Wellman, absent Ron Laux:
•Hired math teacher Trenton CJ Yoder (JCHS), instructional assistants Toni Gundrum (JCHS), Frida Hernandez (Redkey and Westlawn elementary schools) and Sabrina Holcomb (General Shanks Elementary), part-time bus aide Bianca Elwood, part-time cook Teresa Ward (EJMS), assistant middle school swim coach Mindy Weaver and assistant softball coach Esther Stephen (JCHS).
•Terminated the employment of instructional assistant Cody Thompson (JCHS); and accepted resignations from instructional assistants Katrina Myers (Pennville, Redkey and Westlawn elementaries), Betsi Skiver (Redkey and Westlawn elementaries) and Danielle Newell (General Shanks).
•Were asked by superintendent Tim Long to consider new goals for the coming year. He offered a first such goal — to change the location of the alternative school that is currently housed at Pennville Elementary. He said he expects that goal to be achieved within the next few weeks with those students being shifted to JCHS and EJMS respectively.
•Heard comments from Dunkirk resident and former JCHS principal Phil Ford, who asked board members to hold special meetings in communities that could be effected by proposed school closings. He also requested that any potential plans to consolidate buildings be made public. Betts responded by saying board members’ email addresses are posted at http://www.jayschools.k12.in.us/school_board/members.html and anyone is free to use them to ask questions at any time.
•Got an update from JCHS principal Chad Dodd about an innovation competition in conjunction with Jay County Chamber of Commerce and Wal-Mart. The deadline to enter is Feb. 5, and projects will be presented to a panel of judges April 13.
•Accepted donations of $2,245 from the Shawna Davis Fund to West Jay Middle School cheerleading as well as $250 from Scot and Marla Binegar and $200 from Mid States Concrete to Pennville Elementary for physical education equipment.
•Reappointed Pat Bennett to The Portland Foundation’s board of trustees. Bennett is serving as the board’s president this year.
•Got an update about substitute teachers from director of testing and assessment Trent Paxson. There are 56 substitutes who have permits with Jay School Corporation, and a need for an average of 15 per day (or 21 during testing weeks). The school corporation also has 15 student teachers.
•Approved changes to its teacher retirement saving plans as required by IRS regulations.
•Welcomed new board member Tammy Bennett, who was selected last week to fill out the final year of Mike Masters’ term following his resignation in December. Long encouraged Bennett to visit schools in the corporation to learn more about what goes on in each building.