Plan in motion

The problem isn’t going to go away, and fixing it isn’t going to be easy.

But it simply cannot be ignored.

Jay School Board members unanimously approved a resolution Monday adopting a rigorous budget control framework presented by superintendent Jeremy Gulley in an effort to get the school corporation’s fiscal house in order.

Board action came after Gulley presented the board with a 15-page financial analysis and detailed projections on declining future school enrollment. (That report is available with the online version of this story at http://www.thecr.com.)

“We are projected to be in deficit for 2017,” Gulley reported. “If this holds, we will have been in budget deficit four of six years. Our current cash balance is at an historic 20-year low. Enrollment declines are steady and foreseeable. Without action, the projected 2017 deficit will reduce our remaining actual cash balance by half.”

Based upon revised cash flow projections from school business manager Brad DeRome, Jay Schools is now looking at a general fund deficit of $384,370 for calendar 2017.

With that sort of deficit, Jay Schools’ year-end cash balance would drop to about $1.5 million or only enough for one payroll. But the true cash balance after taking into account funds that are already encumbered would be closer to $875,000.

State support accounts for virtually all of the corporation’s general fund, and DeRome noted that 90 percent of that goes for salaries and employee benefits.

Steadily declining enrollment is a key factor, and school spending — particularly on personnel — has not kept pace with that decline.

“Since 1999, Jay Schools has lost 574 students,” Gulley reported. “This trend shows declining enrollment in 15 of the previous 17 school years.”

Going back to the early years of Jay County High School, overall enrollment in Jay Schools is down about 43 percent.

While steep reductions-in-force were made to staff in 2001, those numbers crept back up before being trimmed again recently. The 2001 RIFs dropped the number of school employees from 539 in 2000 to 492 in 2003. But from 2006 to 2009, that number climbed back up to 548. More recently, it has been trimmed to 500, largely through attrition and early retirement incentives.

Serious cost reductions — including the potential closing of schools — have been recommended since 2001. But those have not been acted upon.

While Gulley’s predecessor as superintendent, Tim Long, recommended a series of school closings and student-shuffling moves, Gulley’s report focused instead on building a framework to getting the fiscal house in order.

And that framework won broad support from the board.

“I would like to personally commend you on the entire report,” said board member Phil Ford. “I appreciate all the work. … This board needs to get behind you and be willing to make the tough decisions that have not been made in the past.”

As part of the budget control framework:

•A superintendent-appointed budget control committee will be created to generate options and make recommendations, with representation from Jay Classroom Teachers Association at every school level, principals from each level and others. Gulley appointed Ford and fellow board member Ron Laux to serve on that committee.

•A series of board meetings will be held in different parts of the county to solicit community input.

•Relevant reports and updates will be posted on the school corporation’s website for maximum transparency.

•Financial studies done in 2001 and 2016 as well as a demographic study done in 1999 will be reviewed.

•The facility and consolidation study done in 2015 that recommended school closings will also be reviewed and contingency plans will be developed.

•A hiring freeze will be implemented. “Vacancies will not be filled,” said Gulley.

•There will be continuing staff reduction via attrition, and reduction-in-force procedures and timelines will be reviewed.

•Scheduling and staffing at all levels will be reviewed.

•The number of summer workers will be reduced.

•Technology spending will be reviewed.

•Contingency plans will be developed for moving the Jay County High School Annex and Alternative Placement Center back to JCHS from John Jay Center for Learning.

•Both the preschool and special education programs will be reviewed.

•More bonds may be refinanced and property and casualty insurance may be re-bid.

And a number of other steps.

Those steps will also have to be balanced, Gulley said, against the educational factors involved, noting that Jay Schools has been rated highly by the Indiana Department of Education during its recent period of deficit spending.

“Much talk will be made about numbers, dollars and cents. This is necessary, but not the point,” Gulley told the board. “The finances and budget are not our end, but rather the means to an end. Our mission is to educate students. Our kids are more than numbers. Our schools are more than letters (A-F). Our communities are more than places on a map. We must reflect that in our work.”

At the same time, his report stressed urgency.

“The path to balance in 2017 is doubtful,” he told the board. “A minimal cash balance is available to aid in the measured and planned implementation of cuts and consolidations, but reserves are limited and will buy only so much time.”

He added, “I do believe there will have to be some substantive, meaningful decisions made in the next 120 days.”

Ford, who has been a critic of Gulley’s predecessor, noted that the analysis showed deficit spending under superintendent Tom Little, which was corrected under superintendent Barbara Downing, only to return to deficits under superintendent Tim Long.

“It is a fact,” responded Gulley. “How do we deal with it now?”

In other business, the board:

•Approved unanimously the Indianapolis firm of Church, Church, Hittle and Antrim as outside legal counsel at a partner rate of $225 an hour and an associate rate of $190 an hour.

•Hired Lindsay Edwards as a part-time art teacher at West Jay Middle School and Peggy Dotson as a part-time cook at JCHS.

•Accepted the resignation of special education teacher Ann Grisez.

•Approved leaves of absence for speech pathologist Lindsey Peterson, cafeteria manager Janet Dues, bus driver Amy Lawrence, agriculture teacher Melissa Wolters, bus driver Nicole Stiles, instructional assistant Pam Tebbe and Reading Recovery teacher Emily Laux.

•Approved extracurricular assignments for Brad Horn as assistant boys’ golf coach at JCHS, Brad Aker as assistant softball coach at JCHS, Amy Hawbaker as softball coach at JCHS, Esther Stephen as assistant softball coach at JCHS, Ryan Smitley as assistant wrestling coach at West Jay, Bart Brandenburg as head wrestling coach at West Jay, Mindy Weaver as assistant swim coach at the middle schools, Bev Arnold as swim coach at the middle schools and Dave Cramer as girls’ tennis coach at JCHS.

•Authorized field trips by the JCHS advanced German students, JCHS FFA students, JCHS band students and JCHS health occupation students.

•Approved a bus request by Holy Trinity CYO.

•Accepted a donation of $995 from the Dunkirk Kiwanis Club for classroom grants to teachers at Westlawn Elementary School.

•Approved mechanical drafting courses to be added to the JCHS curriculum guide.

•Heard board president Kristi Betts encourage the community to make use of Donor’s Choose, a website that allows individuals to provide financial support for classroom projects.