A wavering fiscal picture
Idaho budget cuts may hamper ability of local schools to perform effectively
By JESSICA KELLER
ARGUS OBSERVER
Tuesday, December 9, 2008 10:52 AM PST
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| Fruitland High School seniors Kim Ward (left), 17, and Hillary Willhite, 18, both FHS art department students, paint the windows of the Apple Bin restaurant with holiday decorations Thursday. The FHS art department second and third year students hit the town Thursday to paint windows of businesses for the FHS annual art department fundraiser. The past two years, the funds have gone toward purchasing art supplies and equipment as well as Christmas presents distributed through Love, Inc. FHS and other area Idaho school districts could face some tough choices in the next few years as the state ponders ways to cut expenses to save money. |
FRUITLAND — News school districts will not be affected by the recent announcement the Idaho Department of Education will hold back more than $60 million from the current 2009 budget does not have local superintendents breathing any easier because many see future fiscal challenges as a real possibility.
Last week, Idaho Gov. Butch Otter ordered state departments hold back an additional 3 percent out of state budgets on top of the 1 percent he asked for in September. In addition, Otter also asked the departments to set aside 2 percent more in reserve. In response, State Superintendent of Public Education Tom Luna indicated in a memo to school districts last week the public schools budget would not be affected because the shortfall of a little more than $60 million would come from the Public Education Stabilization Fund monies — a rainy day fund created a couple of years ago for such financial crises.
This, however, is only marginally reassuring to some superintendents, all of whom are seriously considering Luna’s other piece of advice to start looking at their budgets for areas they could trim.
Fruitland Superintendent Alan Felgenhauer said his only concern is it is his understanding only the Idaho Legislature can approve taking money from the rainy day fund, which has more than $110 million saved, to use for budget shortfalls.
“So for this year, that’s what has me concerned,” he said, adding he hopes the Legislature approves the expenditure.
Already, however, in anticipation of possible future budget cuts, the Fruitland School District has put a freeze on the equipment budget.
“I’m also going to suggest to the board that we look at freezing a number of other budgets as well, to just emergency or can’t-do-without kind of items, and just wait and see,” Felgenhauer said last week.
In addition, the latest holdbacks only apply to the 2009 budget, which is already in effect, and, beginning in January, school districts and the state Legislature, will begin planning its 2010 budgets, which could bring even more cuts, which also is a concern.
“I have no idea what 2010 is going to bring,” Felgenhauer said, adding he keeps hearing talk of negative apportionment, where the state Legislature is allowed to distribute less money for education than the previous year, bypassing Idaho code. “It’s been done to districts before in terms of getting around the requirement to put the same amount of funding in.”
Felgenhauer also said, with the state of the economy, even with an assurance school districts aren’t going to take a hit with the latest holdbacks, future cuts or holdbacks could be ordered, before the next budget cycle, which could result in a tremendous loss.
“That really hurts,” Felgenhauer said of late cuts. “So we’re going to try and stay ahead of that game.”
Future holdbacks are a concern for Weiser Superintendent Jim Reed, who said his school district is already struggling with financial problems because of a loss in student enrollment, which reduces the amount of money the district will receive from the state.
Reed said he worries the 2 percent reserve savings Otter ordered could translate into holdbacks in the next month or two, and when the state Legislature reconvenes in February, future holdbacks or cuts in the form of negative apportionment are also a concern. Negative apportionment is almost certainly a reality, he said.
“I think that’s a definite possibility,” he said. “The state receipts are going to have to turn around for that not to happen, I would think because the school stabilization fund will only go so far.”
Meanwhile, his school district, already reeling from reduction in student numbers, has put a freeze on all but critical equipment purchases, and future cuts will be considered, ranging from reducing personnel to cutting programs.
“All across the board,” Reed said.
He said, school officials will be looking at attrition to see if any personnel cuts could come naturally from teachers retiring or moving on. Still, he said, the recent announcement by the state of more holdbacks does not come at a good time.
“We’re in a perfect storm,” he said.
New Plymouth Superintendent Ryan Kerby said, in his opinion, it is more likely future cuts will come when planning the 2010 budget, and those cuts, he said, will likely affect how school districts operate.
Kerby predicted the current holdbacks will be made up by taking money out of the rainy day fund to pay for budget items proposed.
“That would give the Legislature this winter to trim some things out of the budgets,” he said.
He said, with those cuts and the remaining money in the Public Education Stabilization Fund, that should be enough to get through the next couple of years.
“You’d hope by the third year you’d be coming back out of this,” Kerby said. Cuts are inevitable, he said.
“There is no question we’re going to have cuts next year,” he said. “They can’t give us money they don’t have.”
He said, six or so years ago, the Legislature cut funding for text books, and school districts used the same text books as before for a couple of years. He said it is likely text book budget cuts could be proposed again, although he opposes such a move.
“There are some things that the education system could shave for a couple of years that’ll probably save $30 or $40 million,” he said, adding he will be part of the debate this winter, going to Boise and providing input.
However, because text books are likely to be proposed, Kerby said, discussion has already taken place among school officials about possible textbook cuts, and the discussion will be brought up and debated again.
“Everything you do you try to not have a negative impact on the education the kids are receiving or you try to minimize the impact,” he said.
