Budget system is changing

The 2019 Jay Schools budget will have an entirely new look, thanks to changes made by the Indiana General Assembly.

“They want to give us flexibility,” school corporation business manager Brad DeRome told school board members Monday.

“It also makes it much more transparent,” said superintendent Jeremy Gulley.

Gone are the six familiar separated funds of the past: The general fund, the debt service fund, the pension debt service fund, the capital projects fund, the transportation fund, and the bus replacement fund.

In their place will be just four funds. The debt service fund and the pension debt service fund will remain, but all other school spending will be divided into two categories: the education fund and the operation fund.

The legislature’s intent was to zero in on how much local school spending goes directly to the classroom — the education fund — and how much goes toward overhead — the operation fund.

Under the new format, Jay Schools will advertise a 2019 total budget of $38,382,038, though that number is virtually guaranteed to come down after review by the Indiana Department of Local Government Finance.

“We advertise high. We expect cuts,” said DeRome.

For example, the 2018 budget was advertised at $35,030,778 and the final state-approved number was $33,786,411.

The board voted 6-0 with board member Kristi Betts absent to advertise the 2019 budget at the $38 million mark.

Of that amount, $22,617,717 will be in the education fund, which is 100 percent supported by state tax revenues and involves no local property taxes.

The projected operation fund — which covers administration, legal expenses, school bus operation and maintenance, capital equipment, utilities, repairs to buildings and buses, and technology — is $10,236,750.

Those dollars will come from a combination of local property tax revenues and monthly transfers from the state-supported education fund.

Gulley said currently Jay Schools is doing a pretty good job in terms of the ratio between operation overhead and classroom spending. The new system, he said, will allow the board to focus on the question, “Are we efficient?”

The 2019 budget also calls for $4,632,723 in debt service and $894,848 in pension debt service, a fund related to pension bonds that were sold in 2004 when the school corporation eliminated a cumulative sick-pay benefit for teachers.

As it will be advertised on Aug. 8, the budget calls for a local property tax rate of $1.4089 per $100 assessed valuation. But that number is expected to drop sharply.

For instance, the 2018 advertised rate was $1.2901 and actually came in at 98.51 cents after review by the state.

DeRome also said he tends to be conservative in his budget projections. The advertised rate, he noted, is based upon a projected assessed valuation of $921 million, when in fact the current assessed valuation for property in the school district is more than $989 million.

The budget is also based upon a projected enrollment of 3,229 students, a key factor since state revenue is directly tied to the number of students.

Declining enrollment has been a factor for several years and would have a direct impact on the budget going forward.

It also includes an appeal for an excess property tax levy on 1 cent per $100 assessed valuation to cover additional transportation costs related to the closing of schools as the corporation tries to reduce its overall footprint and operational overhead.

A public hearing on the budget is set for the board’s Aug. 20 meeting, with final adoption set for Sept. 17.

DeRome noted that as proposed the budget will continue to improve the school corporation’s year-end cash balance, which has been a concern in recent years.

“We’re making progress,” he said. “We’re trying to trend in the right direction.”

In other business, the board:

•Tabled action on bus driver agreements. “I want more driver input,” said Gulley.

•Increased the cost of adult school lunches to $3.55 from $3.50 to bring the price into compliance with regulations related to the federal free and reduced lunch program.

•Hired Brandy Shannon as a technology instructional assistant at Bloomfield and General Shanks elementary schools, Susan Glogas as a part-time library assistant at Westlawn Elementary School, Dawn Alicea as an instructional assistant at Jay County High School, Tonya McCoy as a special education teacher at East Jay Middle School, Jean Rockwell as a reading teacher at General Shanks, Jennifer Rupe as a special education teacher at Westlawn, Melissa Stephen, Raiford Terry, Stacie Toney and Sheila Tremaine as bus drivers, Sadie Bruggeman as a reading specialist at Redkey Elementary School and Debora Nottingham as a part-time cook at West Jay Middle School.

•Approved the retirement of instructional assistant Jo Ann Gierhart.

•Accepted the resignations of social studies teacher Adam Steinbrunner, bus driver Mary Jutte, technology assistant Billie Newsome and instructional assistant Tara Swanson. Also accepted the extracurricular assignment resignation of Adam Steinbrunner as assistant cross country coach at East Jay.

•Approved a leave of absence for JCHS business teacher Rhonda Clott.

•Approved extracurricular assignments for Jessica Lloyd as assistant cheer coach and cross country coach at West Jay, Brea Burcham as cheer coach at West Jay, Misty Missicano as seventh grade volleyball coach at West Jay, Shannon Current as eighth grade volleyball coach at West Jay, Violet Current and Lindsey Willoughby as sixth grade volleyball coaches at West Jay, Irene Taylor as sponsor of student council, honor society and pep club at West Jay, Gaven Hare as assistant football coach at East Jay, Brad Aker as assistant softball coach at JCHS, Dwane Ford as archery coach at JCHS, Garrett Krieg as assistant boys soccer coach at JCHS, Renae Laux as assistant girls soccer coach at JCHS, Betty Harris as Just Say No sponsor at Redkey and Jenny Outcalt as yearbook sponsor at Redkey.