Published: January 07, 2009 12:15 am         

Valley superintendents react as Daniels releases details of his Indiana budget proposal

TERRE HAUTE — Gov. Mitch Daniels is proposing a new state budget that would maintain public school funding near current levels — no cuts, but no overall spending increases.

That will pose challenges to local school districts, where expenses continue to increase, say superintendents in Vigo and Clay counties.

If funding is flatlined, the Vigo County School Corp. still will face increased costs in such areas as health insurance; utilities; automatic experience (step) increases on salary schedules as well as already-negotiated contracts with employee groups, said Dan Tanoos, Vigo County School Corp. superintendent.

Without increased funding levels, the school district would have to turn to its general fund, he said. It has a sizable cash balance, but if eroded too much, the school district eventually would have to look at cuts, Tanoos said.

“We’ve done a good job planning for days like now, however we can’t last in the long haul with the money we have [cash balance],” Tanoos said.

The school district continually looks at its spending and cost conservation measures, he said.

Tanoos’ comments were echoed by Dan Schroeder, Clay Community School Corp. superintendent.

The governor may propose that state funding for schools stays the same, but “that doesn’t mean our expenses will stay the same,” Schroeder said. He, too, pointed to increased utility and insurance costs and step increases on the salary schedule.

“We’d have to spend into our cash balance,” he said.

If funding is flatlined, Schroeder believes the school district will be OK for 2009, but if there is no new revenue for 2010, “We’ll have to look at where we stand,” he said.

The governor also is saying there won’t be enough money for some of his own initiatives, which will have to be delayed or postponed.

Those include completion of funding for full-day kindergarten and the Hoosier College Promise program, which would provide two years of free tuition at Ivy Tech or the equivalent amount at another Indiana college or university.

Last year, the Vigo County School Corp. formed a committee to take a comprehensive look at districtwide full-day kindergarten. Currently, a full-day program is offered at all 11 Title 1 elementary schools, but it is not offered at the seven non-Title 1 elementary schools.

Alpa Patel, who served as co-chairwoman of the committee, said she’s disappointed, but not surprised, by the governor’s budget proposal related to full-day kindergarten.

Sue Loughlin can be reached at (812) 231-4235 or sue.loughlin@tribstar.com.