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District Information: Financial

School Improvement Advisory Committee Meeting Held

Mr. House Presents the "State of the School"

November 23, 2009

The School Improvement Advisory Committee met on November 17, 2009, in the Family and Consumer Science room to discuss issues and review data.  Mr. House gave what he called a “State of the School” discussion to present facts about the current situation in our district.

 

Mr. House stated that from a financial standpoint, this is the toughest time he has seen in his many years in education.  This year’s enrollment at East Central is down eight students.  Funding for schools comes from a per student dollar figure.  The decreased enrollment means the district will receive $67,000 less next year, as this year’s student count determines next year’s budget.  When schools were awarded stimulus money, it allowed them to fill in for gaps from last year’s budget.  On top of that, the state’s 10% across-the-board budget cut cost the district about $200,000.  The state usually awards allowable growth money to districts, a figure that was supposed to be 2% (down from the 4% approved originally).  Mr. House and others school leaders believe the state will not provide schools with any allowable growth at all.  All these factors contribute to what Mr. House described as the worst-case scenario for schools.

 

While the current situation is bleak, Mr. House stated that the district does have an unspent balance, or spending authority, of about $650,000.  It also had cash of $415,000 at the end of 2008-09.  The important number for a district is not the cash on hand, but rather the spending authority a district has. Mr. House likened it to being given an allowance.  If you get a check for your allowance, there still has to be money in the bank to collect your allowance.  You are encouraged to check out financial and budget information for our district and others at the following website:  Iowa Dept. of Management Website  

What does all of this mean at East Central?  Mr. House said the district will make cuts in the budget where it can.  The reality is that the main way to balance a budget is to make cuts, he said.  Unfortunately, approximately 80-85% of a school’s budget goes to pay salaries and benefits, which means the biggest impact to a budget is from cutting staff.  His belief is that a district must maintain its integrity while trying to balance the budget.  That means you can’t cut to the point where your school is not offering its students the best opportunities to succeed.  While cutting field trips would save some money, it would be “like putting a band-aid on a major wound.” 

 

Area superintendents from East Central, Northeast, and Preston met with Del Hoover from the Dept. of Education met on Nov. 2 to discuss the current situation.  It was determined that a committee would be formed where each district would send a board member and two citizens.  The committee will have its first meeting some time in January to begin sharing ideas about the future of the districts.  The public is invited and encouraged to attend the meetings.

 

While the times are extremely tough financially, Mr. House feels our district is in a good position to move forward in the discussions.  It does not need to act out of desperation.  He knows our district has major strengths that must be addressed, specifically mentioning the district’s music program as an example. 

 

When asked what community members can do, Mr. House was clear in his message:  Be proactive, be involved, be realistic and find out what the real options for our district are.  Attend the meetings to get the facts.  Don’t listen to gossip.  If you have questions about anything, call and ask.

 

 

 
 

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