Most of you may be aware that the new Indiana state budget has a large increase in money available for K-12 schools, so I posed the question to HSE Schools about how the increase in state support would impact their budget planning.  School officials have said they need to cut spending due to a  $5 million shortfall.

Cecilie Nunn, Chief Financial Officer for HSE Schools, says she and her staff plan to recommend the spending reductions already explained to the board in a previous meeting at the next regular session April 28..

“We are  cautiously optimistic about the new two-year state budget, but there are a number of variables that are still unknown at this time, including enrollment next school year and the number of students who might choose a virtual option (which will only be funded at 85%)”, Nunn says in an e-mailed message to LarryInFishers.

The school board is scheduled to vote Wednesday on the budget recommendations explained at the April 14th meeting.  The February 1st student count was down 660.  Fewer students mean less state support, in this case in the amount of $3.3 million.  Lost revenue from lower interest rates and a lack of rental income raises the total deficit to $5 million.

Nunn told board members April 14 that the largest chunk of savings comes from adjusting class sizes to levels called for in the most recent operating referendum, kindergarten through grade 6 .  Those grade levels are currently overstaffed by 33 teaching positions.  Resignations and retirements will reduce that number.  Plus, the American Recovery Fund recently passed by the congress and signed by the president will fund programs dealing with pandemic-related learning loss by students.  The savings from adjusting class sizes, plus the federal funds, amount to more than $3.3 million.

Savings of over $1.3 million will come from freezing incremental pay increases for support staff and school administrators, plus not filling several currently open positions.  Several other line items will create savings that total $5.045 million in the coming school year.

Administrators told the board April 14 they are “optimistic” no Reduction in Force (RIF) of staff will be necessary.  But some staff may need to be moved and transferred to accomplish that goal.