News and Tribune

August 19, 2009

State changes to cost NA-FC School Corp. about $500,000

By TARA HETTINGER

Some changes made by the state legislature may end up costing New Albany-Floyd County Consolidated School Corp. about $500,000.

Brad Snyder, deputy superintendent, talked to the school board earlier this week about the changes, saying that he had planned to receive $300,000 from the state once Floyd Central High School’s renovations are completed as part of money set aside by the state to go to schools with new or renovated facilities.

Snyder said that money would have helped pay for the additional costs of keeping up the larger school, such as heating and cooling.

However, Snyder said he just found out that money won’t be around in fall 2010, when construction is complete.

Lee Ann Wiseheart, school board vice president, asked Snyder where that money will come from now.

“We have to go about the business of figuring that out,” he answered.

Meanwhile, another change will cost the school corporation about $200,000. That modification deals with the state teacher pension program. Snyder said the General Assembly just upped the rate increase from 7 percent to 7.5 percent, which adds up to $200,000 that New Albany-Floyd County will have to pay.

The hits financially aren’t over, though. Snyder said the corporation — which gets money from the state based on the number of students — is down in enrollment by 94 students when compared to last year.

“Personally, I’ll be surprised if we can make par. Ninety-four students is hard to make up,” Snyder said.



COSTS TO MAKE ENDS MEET

Other state changes also are costing the corporation with tax collections, according to Fred McWhorter, director of business.

McWhorter told the board that those changes passed on to the county has caused the county to be late for the past couple of years in sending out the tax bills. That means New Albany-Floyd County has to borrow money in the interim, paying interest on that, all the while not earning money in interest had they had their money on time, sitting in the bank.

Bonds taken out to make ends meet in 2006, 2007 and 2008 have cost the district $471,085.66 in interest, McWhorter said. That’s not counting the $10.63 million 2009 bond that the corporation also has had to take out that is outstanding. The board approved taking out another $1,265,616 for this year, too.

Because of paying all that interest, other things, such as capital projects, are put on hold, McWhorter said. He added that it hurts the community, which could have benefited from the additional jobs.

McWhorter said he doesn’t place all the blame on the county officials.

Board member Patricia Badger-Byrd has previously worked in the county assessor’s office and now works for a company that is doing the 2012 reassessments. She said she knows the county officials are doing what they can.

“It’s going to get better. You can see the light at the end of the tunnel,” she said. “It’s getting better.”

However, that doesn’t make the changes any less painful.

“It’s very discouraging,” Neal Smith, board member, said of all the state’s changes. “It seems like the state is trying to strangle public education.”



EXTRA LAND BY SILVER STREET, HAZELWOOD SCHOOLS

The board voted to allow Snyder to investigate and see what the sellers would want for two pieces of land — one near Hazelwood Middle School and the other behind the gym at Silver Street Elementary School.

The first — located at 1102 Myrtle Ave. — is adjacent to land previously purchased by the school corporation, which was at 1100 Myrtle Ave. That home has since been torn down, according to board members.

Snyder said the purchase of this additional property was included in the 2008 budget.

“It’s sitting there to be used or not,” he said, adding that the goal is to budget buying a third property in that area for the 2009 budget, which can’t be completed until the district knows what the assessed values are.

Wiseheart said she’d like to see what the vision is for the area before giving the final approval to buy it once Snyder comes back with a cost for the property.

Snyder said the previous superintendent, Dennis Brooks, had recommended buying up land in that area to help ease traffic woes with car and bus riders coming to and from Hazelwood.

“It’s a safety issue as far as I’m concerned,” Don Sakel, board member, said.

The board passed a motion to allow Snyder to move forward, find out what the seller wants for the property and get an appraisal with a 7-0 vote.

However, the vote for the Silver Street property was 5-2, with Wiseheart and Sakel voting against.

“It’s not something we’ve budgeted for,” Wiseheart said, adding that the Visioning Committee, set out to take over after the Resources for Results committee, has not yet met. “I’m leery because we don’t know what’s going to happen.”

Roger Whaley, board president, pointed out that the board has rejected purchasing properties in the past, after approving the initial step to allow an administrator to pursue it.



IN OTHER BUSINESS

• The board accepted a donation of six automated external defibrillators, which are to be placed in some of the schools.

• The board passed a revised policy on the student use of motor vehicles, stating that no unlicensed vehicles will be allowed to be used to travel to and from school.