Balance clears $2.5 million

Jay School Corporation ended 2019 in the best financial shape it’s seen in years.

Business manager Tarinna Morris told Jay School Board members Monday the corporation ended the year with $2,581,348 in the education fund, having experienced a positive cash flow for the year of $706,455.

“That’s the single-largest positive cash flow in the history of the school corporation,” said superintendent Jeremy Gulley. “That’s a pretty dramatic financial improvement.”

Faced with declining enrollment and the accompanying reduction in state financial support, Jay Schools has been working over the past several years to get its fiscal house in order, consolidating and closing schools.

Pennville and Judge Haynes elementary schools have already been closed, and next year the General Shanks Elementary building will become home to central office and pre-school. Both middle schools will be converted for elementary use, and Jay County High School will become a junior-senior high facility.

“We continue to see an ongoing financial turnaround,” said Gulley, “with further consolidation next year. … Key programs have been preserved at the same time. We have also improved wages. … The changes we’re making are having an impact.”

Morris noted that in January 2017, the corporation had 499 employees. As of December 2019, the number is 433. There have been 23 certified teaching positions eliminated and 43 support staff jobs cut.

Gulley said he expects 20 more positions to be eliminated with the next phase of consolidation in the next school year.

“That’s a lot of change,” he said, “but it was necessary.”

The goal has been for the corporation to avoid deficit spending and end the year with a two-month financial cushion in the event of a disruption of state funding.

“Expenses have been cut through the consolidation process,” said Gulley. “The important part is you see a budget surplus. … Our cash reserves are increasing. … As your enrollment decrease, your funding decreases. The key is, you have to cut expenses.”

In other business at Monday’s organizational meeting for the year ahead, the board unanimously:

•Elected Phil Ford to continue as president, Ron Laux as vice president and Krista Muhlenkamp as secretary.

•Appointed Coldren, Frantz and Sprunger, Portland, as corporation attorneys and the Indianapolis firm of Church, Church, Hittle and Antrim as outside counsel.

•Reappointed Morris as corporation treasurer and Violet Current as deputy treasurer.

•Authorized Morris and Current to access the corporation’s safety deposit box.

•Named Ford as the board’s legislative liaison.

•Appointed Morris and Amy Reinhart as representatives to small claims court.

•Heard Gulley appoint Muhlenkamp and board member Donna Geesaman to the insurance committee.

•Appointed Chris Snow, Laux and Ford to the negotiations committee.

•Hired Hannah Tollett as a speech and language pathologist.