From the LaPorte Herald-Argus:
Administrators, faculty and staff of Michigan City Area Schools are still reeling from the result of Tuesday’s special election, during which the public voted against an increase in property taxes to help the district’s struggling budget.
Following a vote of 3,498 to 2,601 against the referendum, administrators are now faced with the task of reworking next year’s finances. The 2014-15 school year budget was optimistically written to include the funds the tax levy would have provided.
In addition to the cuts that have already been made, MCAS must now cut nearly $2.5 million from the general fund budget.
“Unfortunately the voters decided they don’t want a great education, they want a cheap education and that’s what we have to give them,” said Don Dulaney, president of the Michigan City Area Schools Board of Trustees.
Superintendent Barbara Eason-Watkins said, “We are all deeply passionate about our students and share a deep commitment to providing high quality educational options for our families. Without a doubt, our school system suffered a major setback with (Tuesday’s) vote. Our community has indicated that even small increases are not acceptable in today’s climate and we must accept that decision.”
Many administrators believe misinformation provided to the public over the last few months is the primary reason the school district lost the vote.
“People think it runs like your average business and it doesn’t,” Dulaney said. “State regulations make it completely different.
For example, Dulaney said although the fiscal year for the school budget runs from January to December, teacher’s contracts run from August to July.
“Going into next year, we can’t even notify teachers of a layoff until February; and we can’t lay any teachers off until next year,” he said.
He said, by law, a school may not operate at a deficit, meaning the school district must balance the budget for the 2014-15 school year in five months, between the beginning of the teacher’s contract in August and the end of the fiscal year in December.
“The biggest problem by this referendum failing is we have to recoup that money in five months rather than a full year,” he said.
While budget cuts are imminent to keep the district afloat, Eason-Watkins said it is premature to announce any specific cuts.
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http://www.heraldargus.com/articles/2013/11/08/news/local/doc527af0241c50a751270506.txt
