Marion USD 408 considers budget cuts, increases years ago
With no increase in state funding expected, Marion-Florence Unified School District board members decided Monday to begin studying ways to maintain the budget.
Their choices are to reduce expenses or increase local taxes.
No decisions have been made and district officials did not offer recommendations. Board members will consider all options early this year.
"I don't want us doing this in April without any warning if it comes to a worst-case scenario," said Rex Savage, board president.
Savage said a worst case scenario involved reductions in staffing. If the board chooses to do that, it should happen early enough that the people affected have time to find other jobs, he said.
Laws require the state to be predominantly responsible for funding public education, but a combination of tax cuts and tax shifts have moved more funding responsibilities back to local districts.
USD 408 currently has a levy of 46.223 mills. This includes 20 mills for the general fund, 12.83 mills for a supplemental general fund (which stays in the district), and 13.393 mills to pay bonds and interest on the middle school project.
About 90 percent of district revenue comes from the state. "That's why if the state doesn't do what it needs to do, we will run out of money," said Gerald Henderson, superintendent.
This year's state aid is expected to decrease about $33,000 due to unexpected decreases in student enrollment. This leaves a budget of about $4.282 million.
Concerns are that if the state does not increase its share — and some legislators want to reducing this year's payments — the district will have to make cuts to remain within its budget.
Gov. Bill Graves proposed increased sales tax and some vehicle-related taxes, with $12 million earmarked for schools. Legislators have indicated an unwillingness to raise any wide-ranging tax.
Raising taxes
From the state's viewpoint, the district has flexibility. It could double the number of mills used in the supplemental general fund, adding another 12 or 13 mills. A mill raises $1 for every $1,000 of assessed valuation.
This would increase supplemental general budget from $560,000 to about $851,000, based on current figures.
And the district could generate about $100,000 through a four-mill capital outlay levy.
However, board members said they would not support significant tax increases because of concerns about the economy.
Also, if the state reduces the general fund, the supplemental general fund would decrease, because it is a percentage of the general fund authority. Marion-Florence USD can raise up to 20 percent of its general fund budget.
Other revenue options could be establishing or increasing user fee for activities such as driver education, athletics, summer school, lab classes, and instrument rental; increasing lunch, yearbook, and admission prices; and charge for use of facilities by non-school groups.
Possible reductions
A long list of expenditures that could be reduced was presented.
District officials said the list included all areas but were not recommendations.
"For purposes of discussion, there were no sacred cows," said Martin Tice, business manager. "Everything is on the table."
The list is:
— Reduce classroom budgets (10 percent equals $10,000).
— Reduce discretionary budgets (mostly involves athletics; a 10 percent reduction would equal $30,000).
— Increase class sizes and reduce staff members. Smaller classes are emphasized particularly at the elementary school. The average reduction is $36,000 per staff member. This includes payroll taxes and insurance. Actual teacher pay varies widely.
— Reduce teacher aides ($12,000 per aide).
— Reduce support staff ($10,000 to $25,000 per person, depending on full- or part-time status).
— Reduce summer school staff (eliminating summer school entirely equals $30,000).
— Reorganize district and eliminate one or more administrators.
— Reduce field trips ($300-$400 per trip outside the district, $50 per trip within the district).
— Reduce buses on activity trips and end all pep buses ($200 per bus per trip).
— Eliminate the sports shuttle, which takes Florence-area children to Florence following after-school practices ($5,000).
— Defer vehicle replacement ($50,000 per year, but increased maintenance is likely, and delays could mean massive expenditures later, when several buses need replacement in a single year).
— Reduce in-service training budget (10 percent reduction equals $3,500).
— Reduce equipment purchases ($40,000 budgeted this year).
— Reduce repairs and maintenance ($200,000 budgeted this year).
— Delete programs such as elementary art, foreign language, and band, middle school foreign language, district-wide at-risk coordinator.
— Delete recreation program support ($8,500 annually).
— Delete Learning Center support ($30,000 annually).
— Reduce activities and/or coaches and sponsors (total athletic budget of $125,218, ranging from $711 for dance to $15,201 for football).
Administrators stressed several times that none of these are recommendations. But they also said existing programs at existing funding levels were not an option.
"If we continue in the same manner, we will have to make some of these decisions," Tice said.
