Commentary by Mike Shafer
Can a rich school district be poor? If we’re talking rich in terms of great students, great teachers, and great experiences for kids, the answer is no. On the other hand, if we’re talking about our publicly funded school district located in an affluent community, the answer is definitely yes. Here’s why: In our General Fund budget for 2014, our funding is far below the state average per pupil. State funding has been decreasing for ZCS since 2008. It is now below the level it was ten years ago. Left unchanged, the state’s funding formula will continue to reduce our funding per student through 2017-2018, even though our enrollment continues to grow.
With more students to educate and fewer dollars for every student, we have large class sizes and cannot restore programs eliminated due to budget cuts. When we get requests from our schools for library books, help in classrooms, and so on, we usually do not have the necessary funds available. Our core mission, educating children, is impacted by this every day.
Overall, estimated revenues for all budget funds total $67.8 million for 2014. Expenditures for 2014 will be around $67.6 million. The General and Referendum Funds together account for $41.5 million and $41.3 million, respectively, of these total revenues and expenditures. Combined, 67.1 percent of General and Referendum Funds will go to teacher salaries and benefits, with all Referendum Fund expenditures going for that purpose. Non-teaching salaries and benefits will take 19.4 percent. Other major categories of expenditures (special education services, custodial services, purchased services, supplies and materials, and utilities and property insurance) will be less than 4 percent each.
The good news in our budget is that total debt is now below $200 million and dropping. We will refinance our largest outstanding bond issue in 2015 to get a better interest rate, and will be able to pass that savings on to our taxpayers in the form of a lowered tax rate. We also expect our board to be able to adopt a public declaration of “No New Debt.”
The other funds included in our budget such as capital projects, transportation and school bus replacement, will all share large revenue losses due to property tax caps in 2014, but remain stable. Our capital budget for 2014 does include funds for the second phase of our three-year high school roof replacement project.
Overall, we have a balanced budget for 2014. It is a meager budget that keeps our belt tight, maintaining the budget reductions and cost-cutting measures we have adopted over the past few years. Our frugal 2014 budget will meet our most important needs, but even this would not be possible without the help provided by our 2012 Operating Referendum.
For the present as well as the future, Zionsville needs to ask the legislature for a better deal that provides true reform of the state funding formula.
The full details of the proposed 2014 budget may be found on our Website at:
http://cms.zcs.k12.in.us/?q=node/162
Mike Shafer is a guest columnist and is the Chief Financial Officer of Zionsville Community Schools. He can be reached at [email protected].
