By Sue Loughlin
TERRE HAUTE — Gov. Mitch Daniels’ proposal to fund public schools isn’t as generous as it may initially have appeared, say local school officials and representatives of statewide education organizations.
When the governor indicated funding would increase 2 percent per year for the biennium, that included federal stimulus dollars that are one-time money.
The amount of new state money is about one-half percent over two years, or 0.25 percent each year, said Dennis Costerison, executive director of the Indiana Association of School Business Officials (IASBO).
Under the governor’s proposal, about 57 percent of school corporations would receive less money in 2010 than in 2009, based on an IASBO review of a Legislative Services Agency printout.
“If you are a declining-enrollment corporation, your state funding for 2010 and 2011 will be going down” under Daniels’ proposal, according to an IASBO e-mail communication.
School districts that are growing would get more money.
Overall, Daniels’ proposal statewide “is pretty close to a flat-line budget,” Costerison said.
He believes House Democrats will attempt to provide larger increases for public schools.
Dan Tanoos, Vigo County School Corp. superintendent, said Daniels’ proposal includes stimulus money that is one-time funding. Stimulus money can’t be used for ongoing expenses, including teacher salaries.
“He [Gov. Daniels] is trying to paint a pretty picture that doesn’t have a pretty ending,” Tanoos said.
It is also Tanoos’ understanding that Vigo County, which has had declining enrollment in recent years, would lose money under the governor’s proposal. Urban districts losing enrollment would be adversely affected, while growing, suburban districts would fare better.
“That would be taking away money from [inner city] kids most in need,” Tanoos said.
While many school districts around the state are laying off teachers, Vigo County is not, he said.
“We have been financially responsible,” Tanoos said, and the school district has a healthy cash balance. But if the district doesn’t receive necessary funding, “at some point we will have to start to cutting.”
Randall Kerkhoff, Rockville Community School Corp. superintendent, said that district also would see funding cuts under the governor’s proposal.
“We’re fine for 2009” because of a small cash balance, Kerkhoff said. “But in 2010, we’d be looking at reducing staff with this plan.”
The district needs a 1 percent increase each year just to maintain the status quo as far as staffing, he said. That doesn’t include increases for utilities, property insurance or health insurance.
Dan Schroeder, superintendent of Clay Community School Corp., said that under the governor’s proposal, the district would lose 1.4 percent in state funding — about $400,000 — in just the first year. The district would see additional deep cuts the second year.
“We don’t feel this is a viable budget for our school district,” Schroeder said. “It would have a tremendously negative impact on us.”
State Rep. Clyde Kersey, D-Terre Haute, said urban and rural districts “will take a big hit” under the governor’s proposal.
House Democrats likely will propose a one-year budget and they would like to see a 2 percent increase in state funding for public schools, he said.
They favor a one-year budget because of uncertainty about the economy, Kersey said.
Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.
