Northeast School Corp holds on referendum as farmers recover from avian flu

In response to the impact the avian flu is having on the district’s farmers, Northeast Dubois School Corporation will hold off on asking taxpayers to increase property taxes this spring.

“The passing for the referendum for us is vital,” Northeast Dubois School Corporation Superintendent Bill Hochgesang said. “But our farmers are the backbone of this community and when they are hurting, we need to be compassionate. We are in need but we can hang on. Their need is immediate.”

Facing a $200,000 deficit in their general fund, the corporation had planned to ask taxpayers to add 18 cents per $100 of assessed value to their annual property tax bill to compensate. The extra money and the additional cost cutting the corporation is undertaking would save the Celestine Elementary from being closed.

Even with the added 18 cents per $100 in assessed value, the corporation would still have the lowest tax rate in the county.

If passed, the May referendum would have been enough to cover the deficit for the 2017 budget year. “By pushing this to November, we won’t collect any tax money until 2018,” Hochgesang explained.

For a school corporation that has been whittling down the deficit several years, Hochgesang says they will make it work. “These guys came in with pages of suggestions,” Hochgesang pointed out about the recent studies completed by Brookston Ind. based Administrative Assistance. “And we had already made many of the changes they recommended.”

One measure passed at the school board meeting Tuesday included increasing the cost of preschool an additional $1 per day. Enrollment to the program was also increased by $10 from $25 to $35. The increase will save the program about $7,500 annually.

Another cost saving initiative would be to cut the third- and fourth-grade classes from Celestine if the number of students continued to drop. “Our enrollment is dropping and our kindergarten classes are coming in smaller than those graduating,” he said. “There is not a lot we can do about that. The birth rate for our county keeps shrinking. Similar things are probably going on at the other three school corporations as well.”

These lower enrollment rates are driving a conversation that includes reducing the staffing at Celestine Elementary by moving the third and fourth grades to Dubois Elementary. “We are looking at a magic number of somewhere around 56 or 58 [enrolled],” Hochgesang explained. “Then we may consider going to two sections [classes] once they get to third grade.”

This year, 54 new students started in kindergarten; 40 at Dubois and 14 at Celestine, according to Hochgesang. Dubois Elementary will have two first grade classes with 20 students each and Celestine will remain at around 14 students. He suggested that once this class reaches third grade, they combine them into two classes at Dubois. “We can’t keep them in that small of sections all the way up, it’s just too expensive,” he said. “So, when they reach third grade, we take those 54 and make them two groups of 27; eliminating a teacher.”

This would save the corporation the cost of a teacher estimated to be between $50,000 and $80,000 depending on the teacher’s salary and benefits. However, this savings is three years away.

Hochgesang wants to keep the classes at their current consistency for the K-2 because these early years are so important for the students. They need extra attention as they become acclimated with the schools.

If enrollment increases above that magic number of 56 or 58, the corporation would keep the student in three classes and maintain the third and fourth grades at Celestine.

In regards to the avian flu and the future economic impact, Hochgesang is more interested in ensuring farmers are okay before proceeding with the referendum. “They don’t know what it is going to be,” he said. “If it comes out that there is no economic impact, how wonderful. That would be wonderful. I will still have no regrets waiting another year. At least I know our people, our neighbors, our friends are okay.”

Other actions Hochgesang recommended in addition to the referendum as the school faces a projected $545,000 deficit in the next five years included:

• Eliminate some part-time positions by requiring high school academic courses with multiple sections to contain no less than 20 to 25 students. Also, consider combining required courses with 10 or less students.
• Share the Project Lead the Way teacher with another corporation. This could cut $25,000 from budget immediately.
• Free up teacher schedules and potentially eliminate some part-time positions by utilizing sports or band participation for physical education credits.
• If enrollment continues to drop, teaching positions could be removed through retirements or reduction in force decisions. Retirements would save the corporation $240,000 in the next three years. Reduction in force, or eliminating five beginning teacher positions would save $250,000.
• Hochgesang also recommended some class restructuring and scheduling at the middle and high schools to free teachers up to be shared between the two schools. With some added periods, they can consider adding a drama program.

So far, no extracurricular clubs or sports will be cut.

Without the referendum passing in November, the school corporation would have to take some drastic actions to eliminate costs. Hochgesang said five teachers would be eliminated immediately and closing Celestine would be a serious consideration. The worst-case scenario would be for Northeast Dubois to consolidate with another school corporation.

The Northeast Dubois School Corporation board members will consider the recommendations and have further discussion at their regular meeting on Tuesday, Feb. 16.