[Southsider2k12]

http://thenewsdispatch.com/articles/2010/0...a0327051847.txt

MCAS: Budget cuts likely mean job cuts

By Alicia Ebaugh
Staff Writer
Published: Wednesday, January 27, 2010 4:17 AM CST
MICHIGAN CITY — Michigan City Area Schools likely will be forced to cut jobs by the start of next school year due to state budget cuts, school officials said Tuesday.

“We’re standing to lose $2 million plus dollars this year, with no end in sight,” said Theo Boone, MCAS business manager and CFO. Those who attended Tuesday’s School Board meeting sat in stunned silence after the total was announced.

“As a business, our primary expense is in people,” School Board Vice President Donald Dulaney said. “We’ll have to go to our employees. That’s where the impact will lie.”

Michigan City is in the same boat as many other school districts statewide. Schools will lose $300 million in state funding this year, starting with their January payment. Michigan City’s share will be $2,029,088 for the year, or $169,090 per month. The State Board of Education recommended the cuts begin this month, although Boone said jobs probably will not be eliminated until after the school year is over.

“As you are aware, the vast majority of our spending, about 92 percent, is in employee salaries and benefits, thus preventing the administration from reducing costs prior to June 2010 due to contractual commitments,” Boone read from a report he prepared on the cuts.

As of now, the budget cuts are intended to be permanent, what State Superintendent Tony Bennett has called “the new baseline.” So far, MCAS administrators haven’t come up with a concrete plan to reduce the district’s budget, Boone said. But building and utilities costs are being monitored, he said, and overtime will be eliminated.

Administrators may hold a public workshop to discuss the reductions, he said, and cuts will be shared with the School Board before they are implemented.

“We don’t know when those decisions might come, but they need to be sooner rather than later,” Boone said.

Damage could get catastrophically worse for MCAS, as School Board member Jeffrey Jones was quick to point out, if the district does not prevail in its lawsuit to recover $8.2 million in property tax revenue it could lose over La Porte County’s 2006-pay-2007 property assessment dispute.

“I urge people with an interest in the future of our schools to realize we cannot lose beyond this amount from the state,” Jones said. “We don’t even understand yet what will have to be done if we have to cut $10 million from our budget.”

Any non-renewal of contracts or administrator resignations that have taken place so far this year are not connected to budget cuts, Boone said. At the meeting, School Board members accepted the resignation of John Nielsen, director of personnel, labor relations and policy development, effective March 11. The contracts of two principals also were not renewed after the end of this school year — Kent Davis at Eastport Early Learning Center and Toni Mitchell at Knapp Elementary School.

The board gave no explanation for their contracts not being renewed.

In other business:

• School Board member Beryle Burgwald cast the lone dissenting vote against the night’s consent agenda over how much the school district is paying for legal fees in connection with its property assessment lawsuit in Indiana Tax Court.

Attorney Beth Henkel and two consultants billed the school district $16,275 for about one month of work, Burgwald said. His particular objection was $3,500 spent conferring with Mark GiaQuinta, attorney for County Assessor Carol McDaniel in her suit against County Auditor Craig Hinchman.

“It’s ridiculous,” Burgwald said.

• The second round of H1N1 flu vaccinations has been completed at all elementary schools, interim superintendent Carla Iacona said. Children who did not receive the last or either shot should go to the La Porte County Health Department to receive free vaccinations.

[Southsider2k12]

I'm going to go ahead and speculate that we will see some sort of closings.

[veryirishme]

I think that Michigan City should be up in arms at what is coming for our educational system. I am so worried about the impact of these cuts on our students and community as a whole. What will happen to the community when more jobs are eliminated? What will happen to students with larger class sizes and limited programs? The community should place the blame with our Governor and State Superintendent!

I'm going to go ahead and speculate that we will see some sort of closings.

[mcstumper]

The community should place the blame with our Governor and State Superintendent!

I think we should be thanking the Governor for guiding the state through this recession wiithout sacrificing our long-term fiscal well-being. It takes guts to make the cuts necessary to maintain a balanced budget. Now its time for Indiana's numerous agencies (including the school districts) to tighten their belts and cut the fat. Keep up the good work Mitch!

[veryirishme]

I have no problem keeping the budget balanced. I have a problem with our children paying the price. Where are our priorities? I think we loose focus. The education we provide today is our future.

I think we should be thanking the Governor for guiding the state through this recession wiithout sacrificing our long-term fiscal well-being. It takes guts to make the cuts necessary to maintain a balanced budget. Now its time for Indiana's numerous agencies (including the school districts) to tighten their belts and cut the fat. Keep up the good work Mitch!

[JHeath]

...I have a problem with our children paying the price. Where are our priorities? I think we loose focus. The education we provide today is our future.

This part of your statement says it best. We've been "top heavy" in MCAS for years...far too many admins, not enough front line staff to provide services to teach our kids. Combine that with the lack of parental involvement...well, you've seen the outcome.

We all seem to know what the problems are--we need someone to come up with a viable, realistic solution.

[Dave]

It takes guts to make the cuts necessary to maintain a balanced budget.

Of course, that little thing in the state constitution prohibiting the state going into debt may come into play as well.

http://www.law.indiana.edu/uslawdocs/incon...t-10.html#sec-5

Section 5. State debt
Section 5. No law shall authorize any debt to be contracted, on behalf of the State, except in the following cases: to meet casual deficits in the revenue; to pay the interest on the State Debt; to repel invasion, suppress insurrection, or, if hostilities be threatened, provide for the public defense.

And if you're running short on cash, you can always sell off assets -- like the tollway.

[MCRogers1974]

I believe the comment made by JHeath states it all: "Combine that with the lack of parental involvement...well, you've seen the outcome." My sense is far too many parents are not involved in the education of their children. I also believe a superior education is available at the MCAS if you want that superior education. I speak from first hand knowldege and experience.

[Ang]

I'm taking Irish's side as far as Gov. Mitch. I think he's done a poor job of leading Indiana and should not be our Governor.

As far as MCAS is concerned, I just hope that the first job cuts come from Administration. I think that teachers positions should be the last to get cut and should try to be avoided at all costs. There are many, many ways for MCAS to cut down on payroll expenses besides laying off teachers.

This caught my eye:

Administrators may hold a public workshop to discuss the reductions, he said, and cuts will be shared with the School Board before they are implemented.

I thought those types of issues were to be "presented" to the School Board for approval, not "shared" with them before being implemented. Or do I misunderstand the role of the Board?

[Southsider2k12]

I'm taking Irish's side as far as Gov. Mitch. I think he's done a poor job of leading Indiana and should not be our Governor.

As far as MCAS is concerned, I just hope that the first job cuts come from Administration. I think that teachers positions should be the last to get cut and should try to be avoided at all costs. There are many, many ways for MCAS to cut down on payroll expenses besides laying off teachers.

This caught my eye:
I thought those types of issues were to be "presented" to the School Board for approval, not "shared" with them before being implemented. Or do I misunderstand the role of the Board?

You understand the way things are supposed to be...

[Southsider2k12]

I'm going to go ahead and speculate that we will see some sort of closings.

More specifically, the pre-K program at Eastport will be shutdown, I believe.

[JHeath]

More specifically, the pre-K program at Eastport will be shutdown, I believe.

how long has it been open?

[Southsider2k12]

I think fall of 2007. It makes sense to me with the principal not being asked back, plus the budgetary and regulatory problems in the system.

[mcstumper]

And if you're running short on cash, you can always sell off assets -- like the tollway.

I agree. It was a smart move to sell off a dead weight asset like the toll road and reinvest the proceeds in infrastructure improvements (US 31, I69) that will improve the economic competitiveness of the state.

You are right that the constitution prevents deficit spending, but it doesn't prevent wishy-washy legislators from taking the necessary steps to keep spending in check and forcing tax increases on its residents...

And as for those who think that education spending should never be cut, I respectfully disagree. Without this occassional belt tightening, there is no incentive to seek efficiencies in spending and cut dead weight (whether they be administration, support, or teachers). Businesses are forced to weather economic cycles in this way, and they come out of these times leaner and more streamlined. Why can't our school districts be asked to do the same?

[mcstumper]

I also believe a superior education is available at the MCAS if you want that superior education. I speak from first hand knowldege and experience.

That is a reassuring thing to hear. When my oldest is ready to move from parochial to MCHS, can I ask you repeat that to me a few times.

[Southsider2k12]

That is a reassuring thing to hear. When my oldest is ready to move from parochial to MCHS, can I ask you repeat that to me a few times.

The top students in MCHS do very, very well. I can attest to that first hand.

[MC Born & Raised]

The top students in MCHS do very, very well. I can attest to that first hand.

Michigan City High School isn't unlike any other school, including any parochial school. You get out of it what you put into it.

[Dave]

I agree. It was a smart move to sell off a dead weight asset like the toll road and reinvest the proceeds in infrastructure improvements (US 31, I69) that will improve the economic competitiveness of the state.

Sorry, wrong again Stumpy. Selling off the tollway was mortgaging tomorrow to get a lump sum payment today.

You are right that the constitution prevents deficit spending, but it doesn't prevent wishy-washy legislators from taking the necessary steps to keep spending in check and forcing tax increases on its residents...

Not much concern about that with the Republican supermajority in the state senate, is there?

And as for those who think that education spending should never be cut, I respectfully disagree. Without this occassional belt tightening, there is no incentive to seek efficiencies in spending and cut dead weight (whether they be administration, support, or teachers). Businesses are forced to weather economic cycles in this way, and they come out of these times leaner and more streamlined. Why can't our school districts be asked to do the same?

Because public schools are not businesses.

Businesses are/should be motivated by profit, so being "leaner and more streamlined" should always be part of every business model. "Leaner and more streamlined" for a public school to me usually means nonsense like over 30 kids per classroom, which may save a few bucks but the quality of education takes a serious nosedive.

[Southsider2k12]

Sorry, wrong again Stumpy. Selling off the tollway was mortgaging tomorrow to get a lump sum payment today.

What exactly were they selling off? They were losing money on it many years.

[lovethiscity]

What exactly were they selling off? They were losing money on it many years.

The 50-year-old Indiana Toll Road has 55 million paying customers, but lost money five years, including about $16 million in 2005, largely because the state has not mustered the political will to raise the tolls in more than 20 years.

Now under new ownership and almost double the cost of the tolls. Do the math, if the State still ran it at the current fees, there would be a surplus already. Hmmm, why would a group borrow the money to lease this lemon for 65-75 years? Might be after ten years it will be almost all profit in the area of $20 million a year after expenses.