LCS board cuts $208,500, approves Cash Reserve Levy

The board approved a total of $208,500 in budget cuts and made the decision to implement the Cash Reserve Levy (CRL) to bring in $500,000 for the fiscal year 2010 budget.

That brings the current property tax levy of $12.71 per thousand valuation to $13.36 per thousand valuation, a 65 cent per thousand increase from the FY09 total tax rate.

Both the cuts and the CRL were unanimously approved by the board, following a lengthy discussion before a large crowd of teachers, parents, students and community members.

The cuts

The cuts become effective for the 2009-2010 school year.

Cut were two middle school teachers for $115,000.

One elementary teacher was cut, reducing a third grade section at Clark at $53,000.

The recommendation to not purchase textbooks totaling $65,000 was cut in half, totaling $32,500.

Three of five recommended assistant coaching positions were cut, saving $8,000. The board voted to cut assistant middle school wrestling, ninth grade football assistant, and assistant high school track coach-combined throwing coach. The board kept the assistant seventh grade football coach and assistant varsity football coach, citing the number of participants in the programs.

No reductions were made in the extended contracts of high school/middle school counselors, music, and vocational agriculture. The recommendation was to reduce those contracts (days extended beyond the 180-day school year contract) by 50 percent for a savings of $20,000.

Public comment

Two people addressed the board during a time for public comment regarding the possible expenditure reductions.

Heidi Boehme, a parent with children attending Clark Elementary, questioned why that school was again taking a cut. She expressed concern for the classes where students are being moved out, citing a loss of student leadership and role models as well as a change in the academic challenges for students.

"We have a special demographic of students in our school," Boehme said. "These kids need stability. The teachers and staff love the kids like their own. It's frustrating when no one stands up for the school."

"You've got to give us common sense reasons why these decisions are being made. So far we haven't gotten any," Boehme concluded.

Parent Mark Leonard spoke in support of keeping the extended contracts, citing a need for all the services provided beyond the school year.

"I'd hate to see losing the summer music lessons," he said. "I'd like to see more counseling and vocational agriculture. These make stronger citizens and should be the last things cut," he added.

Budget cut discussion

Board members considered the potential budget cuts line-by-line after only one board member, Patrick Murphy, favored a total package cut.

The reduction of the two middle school teachers will change the teaming concept of teaching from three- and four-person teams to three-person teams. Those instructors are responsible for reading, language arts, math, science and social studies. It also means the loss of an eighth grade elective community cultures class.

According to middle school principal Steve Webner, the loss of two teachers will reduce seven sections of students to six sections, putting more students in each class.

The elementary reduction follows a cut of a fourth and fifth grade section for the 2008-09 school year. Students affected now attend Franklin or Kluckhohn Elementary. The cut of a third grade teacher and section will follow the same guidelines.

Board members discussed the condition of textbooks which need to be replaced. Last year the board indicated not purchasing textbooks would be for one year only.

"At the bare minimum, we need to provide good books," said board member Dan Smith.

Board members received written reports from high school and middle school counselors, vocational agriculture and music instructors outlining the work done during the extended contract days.

Board member Mark Hemmingson expressed his concern about cutting the assistant varsity football coach position, citing the amount of time needed for coaches to have individual contact with players.

"On the other side, I'm also concerned about music," Hemmingson said. "Music is the hallmark of our school and I don't want to lose that." He pointed to the delay of Phase II construction, which would include new music facilities.

"I think that program is taking a bigger hit," Hemmingson said, referring to the cut last year of a half-time instructor in music.

Board member Brenda Phelan echoed a concern for the assistant football coaches, adding the assistant seventh grade football position should also be kept. She also spoke in favor of keeping the textbook purchase in the budget.

FY 10 and beyond

In presenting the preliminary 2009-10 budget information, Wendt told board members he must bring a budget to the board by March 23, and needed decisions made either Monday night or at a special meeting March 16 in order to follow guidelines to hold a pubic hearing and certify the budget by the April 15 deadline.

Property valuations for FY 2009-10 will be $502,729,617, up from $471,051,708 for the 2008-09 fiscal year.

He also said while allowable growth for 2009-10 is set at 4 percent, Gov. Chet Culver has put only 2 percent funding in the state's budget.

There are indications, Wendt added, that the remaining 2 percent of allowable growth may be funded by federal stimulus dollars. He reminded the board that federal stimulus dollars are available for only two years, at which time the state will again be total responsible for school funding dollars.

Wendt said the district is projected to have an enrollment decrease in the next two years, based on larger graduation classes versus a smaller incoming kindergarten and on smaller enrollments in the lower grades.

Raising the levy rate for the school district would not be a popular decision as both the city and county have approved budgets with no tax levy increase, Wendt continued.

Assuming a 4 percent allowable growth figure, Wendt recommended the board utilize the Cash Reserve Levy in the amount of $500,000, with that $500,000 being put into reserve for future budget years and unexpected events with the FY10 budget.

"This year it is possible to levy (the Cash Reserve Levy) and put it away," Wendt said.

By putting the $500,000 in a reserve rather than spending it on general operating fund expenditures, the district's spending authority will not be adversely affected.

Murphy said he was concerned about long-term use of the Cash Reserve Levy with the allowable growth rate going down for FY10, and indicated he would bring up pursuing the Instructional Support Levy (ISL) again.

Wendt said with enrollment and allowable growth projections, the ISL becomes more and more important to the district.

The FY10 levy of $13.36 per thousand puts Le Mars Community Schools as the third lowest in total tax rate among Lakes Conference Schools and third lowest among Plymouth County schools. The new levy is also well below the FY09 state average of $14.70 per thousand.