Tuesday, August 14, 2012

Article argues Duneland Referendum Saved Jobs and Eased Budget

From the Chesterton Tribune:

Because more than half of Dunelanders who voted in last May’s school referendum said yes to a 22 cent per $100 of assessed value property tax increase, the Duneland School Corporation will be able to sustain its teaching staff and its programs for 2013, said Schools Superintendent Dirk Baer.

The Duneland School Board on Monday carried out its yearly duty of working through the school’s projected budget for 2013. The newest of all budgets is the referendum budget which is expected to collect up to $4.8 million in next spring’s property tax collection to help cover funding shortfalls seen in next year’s Duneland school budget.

Baer said the additional money will not be available for the school to use during its upcoming 2012-13 school year, but when it kicks in it will help the school pay for its burgeoning costs. The county will levy the referendum-approved tax through its spring property tax bills and then disperse the funds to the school corporation.

Assistant Superintendent Dave Pruis who has been leading the budget discussions with the board, said the corporation has seen a seven percent increase in its health insurance costs for staff this year and significant hikes in costs for utilities and building repairs.

Programs and salaries will still be flatlined as they have been in recent years, Baer said, but if the referendum had been voted down the school at this time would have been looking at serious and painful cuts, with up to 26 staff positions getting the ax.

“It was not just a scare tactic after all,” said Board president Janice Custer, referring to criticisms made in days before the referendum vote.

Pruis said the state’s estimated allocations for the schools’ General Fund will be close to $34.4 million, which is about $1.3 million less than what was approved for 2012’s fund.

The General Fund is almost entirely made up of the state’s school funding, generated through sales and income tax. It goes mostly to fund teacher salaries. From the projected $34.4 million, $28.5 million is for basic tuition support and almost $3 million is used for Special Education, Pruis said.

“Without the referendum you go back to that original amount, we would have needed to take a cut of $4 million out of $34 million. That would NOT be fun,” Pruis said.
...
Duneland’s 2012 budget was roughly $62 million and the referendum should raise it past that level, but it is still considerably less than the budgets seen in years before the 2008 tax reforms, when the state stopped schools from funding the General Fund from local property taxes.
With the presence of the tax caps and tax abatements, and the continued decline in assessed values in many parts of the school district, Pruis said Duneland’s prospective overall AV for this year is $2.416 billion, $4.6 million less than for this year. Sections of the school corporation that saw the biggest reductions in AV include the Jackson Twp. area and Westchester Twp., although some AVs did increase in areas like Liberty Twp., purportedly because of the new hospital.
...

The board looks to finalize the proposed budget at that meeting. As required by state statute, a public hearing for the budget will take place on Monday, Sept. 10 with an official adoption tentatively scheduled for Oct. 1. Budgets must be approved before November.
See the full article here:

http://chestertontribune.com/Education%20Duneland%20Schools/referendum_vote_saved_school_job.htm