SA facing more budget cuts

BERNE — After consecutive years of deficit spending, and with another projected for 2015-16, South Adams Schools is facing some difficult financial decisions.
Superintendent Scott Litwiller explained to South Adams School Board on Tuesday that estimates show deficit spending of nearly $800,000 from the general fund for the coming school year. He urged board members to come up with possible solutions to be discussed at the May 12 board meeting.
The board also OK’d several summer construction projects.
Litwiller told board members that though the state budget has not yet been finalized, Indiana’s Legislative Service Agency projects South Adams will get $7.89 million in state funding for the 2015-16 school year. Based on that number, the school system will have deficit spending of $778,777 if it has a budget similar to the one it approved for 2014-15.
South Adams had deficit spending of $393,214 in 2013-14 and projects deficit spending of $583,205 this year, but was able to absorb those costs because of its existing cash balance.
But as a result of deficit spending that balance has dropped from $2.28 million at the end of 2012 to a projected $1.29 million at the end of this year.
If spending were to continue at the current rate, South Adams would be in the red by the second half of the 2016-17 school year.
“We have some time. It’s not like we are in a state of financial woe,” said Litwiller, who noted that the goal for the year-end balance is about $1.4 million (two months of general fund expenses). “We still have an almost completely healthy cash balance. … So we have some time to make some decisions.
“But I’d also say we can not continue on this coming year like we’ve spent this year and the year prior. We have to make some decisions to either increase revenue and cut expenses or do some of both.”
About 87 percent of the general fund goes toward personnel in the form of salaries and benefits, which could mean a reduction in staff. This comes after South Adams reduced its staff by four for the current school year by eliminating or consolidating positions after resignations and retirements.
While per-student funding from the state has dipped to $5,766 per student this year from $5,856 in 2009, most of South Adams’ decline in funding has come because of a loss of students. Enrollment has dipped to 1,215 this spring from 1,334 in 2009, with nearly 75 percent of that drop coming in the last two years.
The largest of the summer projects that gained approval from board members Arlene Amstutz, John Mann, Julie Mansfield, John Buckingham, Amy Orr, Landon Patterson and Mitch Sprunger was the construction of a wash bay at the bus garage. They selected the low bid of $176,765 from Limberlost Construction, Geneva, for the project.
Five other bids ranged from $179,500 to $204,888.
Plans to build the wash bay were delayed last summer because costs came in higher than expected. Director of building and maintenance Dave Vorhees said the project should get underway late this month or in early May.
The board also chose a bid of $148,179 from Ohio and Indiana Roofing, St. Henry, Ohio, to complete the school’s ongoing roof replacement project. It selected a bid of $15,273 from O.S. Striping & Seal Coating, Marion, for repairs to the south parking lot as well as Starfire Way and the bus driveway.
In other business, the board:
•Learned about a food pack event sponsored by Dots in Blue Water and Feed My Starving Children scheduled for April 24. Students and volunteers will spend the day packing 100,000 meals for those in need.
•Approved on first reading a change to its policy about reduction in force (RIF) following a recent court decision. There will be a second reading at the May board meeting, and Litwiller noted that there may be further changes at that time.
•Made updates to the student handbook, including: students must arrive by 8:30 a.m. in order to participate in extra-curricular or co-curricular activities; the prosecutor will be notified after a student has five excused absences; and no ear buds or headphones are allowed unless approved by a staff member and being used with a school device.
•Honored reading recovery teachers Lois Bailey, Sharyl Calhoun, Emily Cook, Tiffany Gorrell, Anita Goodwin, Julie Reef, Andy Sommer, Title I director Michelle Clouser and elementary school principal Shellie Miller as examples of excellence.
•Accepted a Secured School Safety Grant to pay for half the cost of its school resource officer with a cap of $26,000.
•Approved out-of-state field trips for 11th grade history and English classes Friday to the National Museum of the United States Air Force in Dayton, Ohio, and the senior class May 26 to Cedar Point.
•Accepted a donation of $969 from former board member Ray Gill for a meeting and meal held for the parents and siblings of current Amish students.
•Approved summer school classes, including IREAD, Jump State Remediation, Wilson Reading, Algebra I, credit recovery and credit advancement, summer band, supervised ag experience and migrant fall extension.
•Hired Jennifer Sorgen as a tutor for the Migrant Education Resource Center. Also accepted the resignation of Rick Burkhalter as South Adams High School football coach (see related story page 10) and Grant Moser as a class sponsor.
•Heard the athletics participation report for SAHS, which showed 48.6 percent of students participated in a sport this year.
•Learned from Litwiller that plans to install turf along the home sideline at the SAHS football field are back on. The $17,740 cost will be paid from the athletics fund and donations.