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August 26, 2006

Vigo School Board to act on contract

TERRE HAUTE — The Vigo County School Board will act on a new teachers contract when it meets at 7 p.m. Monday.

The one-year contract would give teachers a 2 percent salary increase for 2006-07 and the school district would pick up most of an 8.42 percent increase in health-insurance premiums.

Teachers overwhelmingly ratified the contract when they voted on Thursday.

With a 2 percent pay increase, a beginning teacher would make $30,724; a teacher with a master’s degree and 10 years’ experience would make $46,602; and a teacher with a master’s plus 30 hours and 18 years’ experience would make $60,014.

This marks the ninth year in a row that the school district and the Vigo County Teachers Association reached a tentative agreement before the start of school.

Health-insurance premiums will increase 8.42 percent for 2007, which translates into about a $700,000 increase in premiums just for teachers.

The School Board is picking up 75 percent of that increase, which provides enough funds to maintain the same percentage rate of contribution as last year, said Tom Chiado, chairman of the association bargaining team.

A teacher on the employee-only plan would pay about $1,065 out of pocket per year in premiums, while the board share would be $5,712. A teacher on the employee-dependent plan would pay about $5,072 per year, while the board would pay $13,765.

Before the regular meeting, the board will conduct a public hearing on the proposed $143.8 million 2007 budget.

The budget consists of six funds that operate schools, pay debt, maintain buildings, operate buses, buy buses and help fund special education pre-school programs.

How much school property taxes will increase — and whether they will increase — is just a projection at this point, with many variables subject to change.

In the worst case scenario, the tax rate would increase to $1.62 per $100 assessed value, up 34 cents. That is based on a 5 percent decline in Vigo County’s assessed value.

Another scenario — based on the county having the same assessed value — would mean a tax rate of $1.40 per $100 assessed value, an 11-cent increase and a more realistic scenario.

At this stage of the budget process, “All we are trying to accomplish is to set a maximum tax levy and maximum tax rate” to ensure adequate revenue for the school district, Donna Wilson, chief financial officer, has said.

Once the budget, levies and rates are advertised, they can be adjusted down, but they can’t increase.

The school district will adopt the budget Sept. 11, and the state Department of Local Government Finance will make adjustments as the budget process continues.

The advertised budget of $143.8 million includes $55.6 million that would be raised from local taxes. About $5 million of that is “excess levies” aimed at protecting school district revenues; the $5 million will likely be cut once state officials review the budget.

In the general fund, the state projects an increase in state and local funding of 1.38 percent, from nearly $95 million to $96.3 million next year. Most of the increase is state funds.

In another matter, the board will have a second reading on proposed revisions to its computer and Internet use policy.

The school district is making revisions to make sure it’s in compliance with the Child Internet Protection Act, a federal law.

There are no major changes, but the revisions clarify expectations of employees and students who use school computers.

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