Decorah School Board begins tough financial discussions

Although it remains early in the FY 2011 budget preparation for the Decorah Community School District, several variables and critical issues were identified at the board meeting on Monday night. Among them:

- Superintendent Mike Haluska said it is imperative for the Iowa Legislature to set funding for the next fiscal year by the end of this month in order to allow districts to plan for next year. He also said that the current situation is one in which the state has created a tax shift from to state to local governments.
- Haluska said the building principals are currently assessing the impact of attrition in their buildings and will report to him by January 18. Last month the district accepted the early retirements of 14 teachers and approved packages for them in an effort to reduce personnel costs.
- On a related note, board member Melanie Tietz advocated for seriously looking at that attrition and how it might facilitate a serious discussion of class sizes and staff reductions, rather than simple cost savings via lower salaries. She emphasized it would be the most responsible thing to do this now, rather than delay until the following year when worse financial scenarios are projected. Haluska said that by the end of February, they would have a better handle on the impact of the attrition.
- While the upcoming year remains in question, and the best possible scenario from the state seems to be a 2 per cent allowable growth (but not funded to that level, with additional district money needing to come from cash reserves and other resources), the projection for FY 2012 seems to be a negative allowable growth (perhaps between minus 3 and minus 10 percent). That scenario would result in major general fund cuts from the state, and if districts were to come anywhere close to budgets of the previous year, they would need to implement significant property tax levies.

Haluska said he would begin to introduce more specific budget recommendations at the February meeting, but he did not want to preempt initial staffing considerations from the building principals.