The Times - Serving Waitsburg, Dayton and the Touchet Valley

WAITSBURG – With a declining general fund balance and staffing well over state apportionment allocations, Waitsburg School District Superintendent Carol Clarke informed school board members that they have a deadline of May 15 to make decision regarding possible staff cuts for the 2016-17 school year. Nearly all of the district’s certificated teaching staff was in attendance at the April 13 regular board meeting.

Clarke reminded the board that “75-80% of any school’s budget is based on personnel,” and that enrollment generates staffing allocation funding from the state. She also explained that state legislative action requires that teachers must be notified by May 15 if their contracts are not going to be renewed for the coming year.

Clarke presented a chart showing a projected enrollment of 275 for the 2016-17 school year. At that count, the state would fund 16.63 certificated teachers. The district currently employs 20 certificated teachers. Of that, a .68 special education teacher position is funded with federal dollars.

Since Clarke was hired as superintendent twelve years ago, student enrollment has declined annually, with the exceptions of 2008, 2010, and 2015, from 344.95 in 2005 to the current enrollment of 274.75.

Clarke said the board has been prudent to keep a strong general fund balance, but that balance has dropped significantly – from $650,750 to $470,722 – since this time last year. Clarke did note that tax dollars should start arriving in the coming weeks but was unsure how much income that would generate.

“What the board has to do is look at how they might want to address that for next year. There has to be a decision in May if there is going to be a reduction in force,” she said.

Clarke also said that the collective bargaining agreement with the Waitsburg Education Association (WEA) requires that the district inform the WEA of potential cuts. Clarke said the WEA has been informed and that a meeting to discuss alternative ways of addressing the fund shortage is planned, but has not taken place yet. She also said the WEA has requested information that the district is still working to provide for them.

“I understand that the financial piece is difficult, however we don’t want to drop the quality of the kids’ education either,” said teacher Pam Beasley.

Teacher Lynnsey Bailey cautioned against reductions saying that teachers still see the effects of the strain put on students when Russ Knopp retired as middle school teacher and the position was left unfilled to help reduce staff costs.

“I think this community wants to support positive education. If that means that rather than $500,000 in the budget you have $400,000, I truly believe this community wants the best for the kids. We are bare bones staff as it is right now to do everything that’s being asked of us. I think that it’s really important, before we start talking about a lot of other projects that are going on, that the money that should be invested, should be invested in the kids, and that’s what you need to remember. And you need to talk to the community and see how they want the money spent,” said teacher Roseann Groom.

Teacher Nancy Bickelhaupt spoke in agreement saying the community’s support of the M&O levy indicates that they are willing to provide tax dollars for support in the classroom.

“It’s always a juggling act,” said board chair Ross Hamann. “When enrollment shrinks, we get less money. If your staffing stays the same and your apportionments are decreasing you start to have a very negative effect – a tipping point. We have funds and have made significant sacrifices to try to keep our staffing level as high as we can. I think we’ve proven that. That’s why we’re over now and we’re paying for it. We do see that value. It’s a very, very difficult decision” he added.

In a follow-up interview with The Times, Clarke said the big question is what is the right amount to keep in the general fund.

She said the State Auditor’s Office generally considers a 15% reserve to be prudent. Since 2006, Waitsburg’s general fund balance has fluctuated between a high of 21.7% in 2014 to a low of 11.8% in 2012, with the majority of years between 16 and 18%. It currently sits at 11.5%.

The general fund is used to maintain staffing during enrollment declines, for emergency equipment and facilities repairs or improvements, to offset special education expenses that are only partially funded by the state, to purchase building expenses such as copy machines, and to cover December payroll, which is paid before the end of the month when the state apportionment is received.

When staff members retire, a portion of unused sick leave and vacation time, which can be significant, is eligible for buyback and must be purchased through the general fund.

Clarke said she has a budget proposal in mind that she feels will have a minimal impact on students and programming. She plans to meet with the WEA to discuss alternative plans and will present the board with suggestions at the May 11 board meeting.