Could the Northside Early Leanring Center change its function again?
The Churchill County School District left its audience baffled after its special meeting Thursday night to address the $2.3 million deficit the district is facing.
Phyllys Dowd, director of Business Services, listed four reasons for the deficit, ranging from smaller enrollment to healthcare.
Declining enrollment — the current fiscal year is funded based on the 2012-13 enrollment due to the 5 percent decline in enrollment from 2013-14 to 2014-15. The district is not anticipating another 5 percent enrollment drop; therefore, the need to budget the Distributive School Account (DSA) revenue based on the 2014-15 enrollment.
“The total DSA reduction is $1,449,999 million,” Dowd said.
Public Employee Retirement System Contribution Rate Increase — The Retirement Board approved the PERS contribution rate increase from 25.75 percent to 28 percent, effective July 1, 2015. The District has 425 employees who are members of PERS and the cost of the rate increase on current salaries is $454,108, she said. That amount is $534,674 when rollups (step increases) are included, an increase of $80,566. This does not included any extra days or other pay that is subject to PERS contributions.
Experience Step Increases — This is the annual “rollup” of wages for eligible employees. It is estimated that the cost would be $374,063; this includes the $80,566 from the PERS increase.
Affordable Care Act — This law requires the district to offer health insurance benefits to all employees and substitute teachers that work an average of 30 hours or more per week. Dowd said the district currently insures all positions at a lower threshold than 30 hours and due to the shortage of substitutes; there are many who would qualify for insurance and therefore increase costs. It is estimated that five will be offered the coverage, effective July 1 as required by the Act, she said. That cost at the current premium would be $44,395 ($8,879 each).
“The above items total a $2.3 million deficit,” Dowd said “This does not include the normal increases in expenses. The resolution can include reducing expenses and increasing revenues.”
Dowd said the district must submit the budget to the Department of Taxation by April 15, per negotiation agreement with licensed staff. She said the district is required to have a public hearing on the third Wednesday in May and submit the final budget to the Taxation Department on June 8.
Don Mello, a retired school board member, asked the board what administration made the recommendations. Superintendent Dr. Sandra Sheldon responded that staff, members of the budget committee, board members and administrative staff produced several recommendations.
“We are still open to thoughts or ideas,” Sheldon said.
Mello continued by saying he understands the auxiliary gym will be built using capital construction money but he asked about the $100,000 maintenance cost.
He said it is important for the district to send out letters to parents to inform them of the situation and the options being presented.
“These options will affect parents and their children,” Mello said. “I think it’s important that the district is transparent in its discussion and decision.”
Lisa Solinski, Numa Elementary School teacher, said she was present as both a parent and staff member and said she was talking on behalf of concerned parents and staff members.
“We have heard rumors stating the district missed financial opportunities because of missing deadlines and that we do have funds and don’t need to make the cuts,” Solinski said. “If errors are made, are those individuals held accountable Because we’re always held accountable for our students?”
Solinski said there is a lack of communication from the district and board between teachers and parents informing them ABOUT what is going on.
Becky Dodd, president of Churchill County Education Association, received applause with her suggestion to the board.
“My suggestion would be to end the NAP testing that is being given by the schools,” Dodd said. “We already have Star testing, which is being including in our title grants … my understanding is the NAP test cost $1,100-1,400 per student per test. We have students taking that test three or four times a year.”
The district can get rid of the test since it is not required by the state, Dodd said.
“I know we have the Smarter Balance test but get rid of all of the rest and throw them away and let the teachers teach,” she said.
Trustee Greg Koenig said there are several reason why the district shouldn’t cut something; however, he added the reality is the district is $2.3 million in the hole.
“We don’t want to make any cuts, but we have to,” Koenig said.