Hearing set for instructional levy
Times are tough financially for schools all around Iowa. They are even tougher when schools have the money, but aren't allowed to spend it.
"We always have to have permission to spend money that comes from taxes," said Clarke Superintendent Ned Cox.
To increase the amount of dollars the district is allowed to spend for general expenses, the Clarke school board approved a resolution to adopt an instructional support levy. The new levy would replace the district's current Physical Plant Equipment Levy (PPEL) for five years.
"We hope to shift that money back to PPEL when the economy gets better," Cox said.
Residents won't see any increase in taxes for this change, Cox said. Clarke will fund the instructional levy with the same 5 percent income surtax that currently goes to PPEL.
Last year, PPEL brought in $228,000 to the district. Cox said this number can vary depending of the number of people unemployed.
"It's based on personal income, so if people aren't bringing in an income, we don't get as much," he said.
Money from PPEL is used for very specific purposes, like repairs for a roof or purchasing new equipment. By shuffling the money over to the general fund, the district would be allowed to use it for paying teacher's salaries, heating bills and other expenses to keep the school running.
Cox said all but 20 schools have used instructional levies, but to his knowledge, this would be the first time Clarke took advantage of the state program.
"I'm not sure why Clarke hasn't participated in this before," Cox said.
Murray Community School District already has an instructional levy and their school board recently voted to extended it another five years.
Murray Superintendent Alan Miller said he is waiting to see what decisions legislators make before implementing any increase in taxes or financial changes for the school.
The school lost $135,008 with the mandated 10 percent cut and have been using cash reserves.
"For six or seven years we've been dipping into the reserve to operate," Miller said. "You should have two or three months of reserve in the bank at all times and we're getting to a point where that's in jeopardy, too."
The district hasn't laid off any staff members and is scrutinizing every program and expense.
"We're looking at the programs that we have to have as opposed to programs that it's nice to have," he said. "The baseline for criteria and the top priority is the education of kids."
Last year, staff members didn't see any increase in their salary. Freezing wages two years in a row will be tough, Miller said.
CUTS
Clarke schools are pinching pennies and making sacrifices to fill the gap for the estimated $650,000 they will lose from the state.
Cox is expecting to freeze wages and cut the school's workforce for teachers and support staff. There could also be a change of administrator assignments.
The district has also cut all discretionary spending, like traveling out of district. Some student field trips are still continuing through funds raised by Parent Teacher Community Organization (PTCO).
Teachers and secretaries may have to wait a little longer to replenish their supplies. Cox said they implemented a 20 percent cut for line items, which translates to a savings of $23,000.
"That's relatively minor, but it's a savings," Cox said.
