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Published: June 16, 2009 3:00 a.m.

Tale of two budgets

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School funding
Area school districts face dramatic differences in 2010 support under the two proposed budget scenarios, one from House Democrats, the other from Gov. Mitch Daniels:
DistrictHouse DemocratsGovernor
Central Noble +2.00 percent -1.42 percent
Fort Wayne Community +3.42 percent -0.10 percent
Hamilton Community +0.13 percent -3.51 percent
Huntington County +0.70 percent -1.47 percent
Imagine MASTer Academy +44.85 percent +42.36 percent
Southwest Allen +0.10 percent +0.93 percent
Steuben County +0.96 percent +1.81 percent
North Adams +0.63 percent -1.34 percent
Northwest Allen +0.47 percent +2.59 percent
Smith-Green Community +1.03 percent -2.21 percent
Timothy L. Johnson Academy +1.8 percent -1.46 percent
Wabash City +4.02 percent -0.90 percent
West Noble +4.09 percent -1.24 percent
Whitley County Consolidated -0.51 percent -0.72 percent

To the achievement gap challenge, Indiana school districts can add a second: The budget gap, the gulf between how their schools are treated under Republican Gov. Mitch Daniels’ plan and the House Democratic proposal.

Neither is likely to represent the end product. But urban and rural school districts – already struggling under declining or stagnant enrollment and serving students disproportionately affected by the recession – need a plan closer to the Democrats’.

The differences are stark. Under the governor’s two-year budget proposal, Indianapolis Public Schools would face a cut of $13.5 million next year and $29.7 million in 2011. House Democrats would also cut funding for IPS in their one-year budget, but only by $834,000.

In the fast-growing Hamilton Southeastern school district, the governor’s plan gives a 5.38 percent increase next year and 10.8 percent in 2011, for a total of $15.2 million. The Democrats’ plan offers a more reasonable 4.63 percent increase next year, about $4.3 million.

Urban schools have been well represented at hearings before the bipartisan budget subcommittee and the House Ways and Means Committee this month. But the two spending plans also have a dramatic effect on rural schools. Northeast Indiana’s smallest district, Hamilton Community Schools, would face a 7.62 percent reduction over two years under Daniels’ proposal – a loss of $445,000. The Democratic plan would give the district an extra $5,152 next year.

Stacey Hughes, superintendent of Central Noble Community School Corp. in Albion, said the $121,000 reduction her district would face under the governor’s plan represents salary and benefits for two first-year teachers. Although the district has been losing 35 to 50 students a year for several years, the enrollment loss is spread across grade levels.

“If I lose 10 kids and they are throughout K-12, it’s difficult to reduce a teacher,” Hughes said. “If I lose 10 out of the first grade, I might be able to cut one section.”

Turner was able to avoid issuing reduction-in-force notices this spring because of a teacher retirement. The district already had reduced its total administrative staff to seven – the high school principal added supervision of Central Noble Middle School to his responsibilities.

Still, Hughes is sensitive to the economic demands the families in her district are facing, and she understands that schools should be prepared to make spending cuts as well.

“It’s really hard for me, philosophically, to think education would be exempt from this. That doesn’t mean I wouldn’t fight for my kids and my schools,” she said. “I think education has a bull’s-eye on our head – it’s just tough.”

The state’s declining revenue forecast changed the state budget discussion for the special session.

The governor’s budget proposal represents a change in philosophy, as well. It prescribes a dollars-follow-the-child formula, which would work well if children were widgets. But students come to school with varying degrees of need, and needs are greater when families are under economic stress. Now, of all times, is not the time to orchestrate a massive shift of dollars from poorer school districts to wealthier districts.

No one is going to come out ahead on the final agreement. The best that lawmakers can strive for is a plan that treats all districts as fairly as possible. They must be wary of approving a budget that will have long-term consequences on Indiana’s cities and smallest communities by further straining their school districts.

The constraints of a special session demand a budget that does the least harm, and the House Democrats’ proposal is much closer to the mark.

Source: Indiana House Democratic Caucus