The Tri-Township Consolidated School Corporation’s 2021 budget was adopted by the school board last month, but the Indiana Department of Local Government Finance will hold another hearing on it tomorrow. The budget totals just under $4.6 million.
Almost $2.3 million of that would be the Education Fund, which is where teachers salaries are budgeted and receives its funding from the state based on the number of students. Over $1.5 million would be in the Operations Fund, which covers most other expenses with property tax revenues.
But local taxpayers filed a petition outlining a number of concerns, including a lack of clarity about the school corporation’s current financial situation, the decision to request the maximum allowable property tax levy increase, and a lack of detail in the capital projects plan.
During the school corporation’s required response during last month’s budget adoption, Superintendent Kelly Shepherd noted that petitions of this type are rare, and added that the objections appeared to be more with the process than with specific provisions in the budget. He noted that the budget was in the black in 2019, but COVID-19 and the drop in enrollment may lead to a deficit in the Education and Operations funds this year.
“For the calendar year 2019, the difference between the revenue and expenditures in the combined Operations Fund and Education Fund was only $32,000 and change,” Shepherd explained. “Fortunately, there were no major unforeseen costs, such as repair of boilers or roofs. We anticipate the lifespan of our current roof systems are nearing their end. This could lead to the need for unbudgeted large expenditures.”
Shepherd anticipates that raising the property tax levy by the maximum amount still wouldn’t be enough to offset the combined losses in the Education and Operations funds. But he argued that the school district could avoid the need for such large increases in the future by closing the LaCrosse School and incorporating high school classes into the Wanatah campus. “The school corporation maintains its position that it is inefficiently spending upwards of $300,000 on staffing,” Shepherd added. “It further maintains its position this could be mitigated with one unified campus.”
The school board unanimously approved the budget and also authorized school officials to transfer up to $120,000 from the Education Fund to the Operations Fund over the course of 2021. It’s become a typical step for school corporations around Indiana, since the state adjusted the school funding structure last year. Since there typically isn’t enough property tax revenue to cover certain expenses that used to be funded with state money, local school boards are essentially required to go through the process of moving it out of the Education Fund.
Now, the Indiana Department of Local Government Finance plans to hold a virtual public hearing on the proposed budget tomorrow at noon. Taxpayers in the school district who want to provide testimony have to submit a request by 5:00 p.m. today. More information can be found on the DLGF website.
