Despite its recent school consolidation effort, Elkhart Community Schools still needs to cut spending, according to a financial analysis presented to the school board Tuesday.
April Fitterling with Policy Analytics said the school corporation needs to start cutting now from its education fund, which is where teacher salaries are budgeted. “Unfortunately, to right the ship, to have a cost reduction, the option really is in wages and benefits,” Fitterling said.
Education fund money is allocated by the state, based on enrollment. If no cuts are made, Fitterling said the fund’s annual deficit could surpass $15 million in the next five years.
She said the operations fund, which is supported by local property taxes, is in better shape. But it’s also expected to have a growing deficit, amid Indiana’s property and income tax reform efforts. Fitterling also noted that Elkhart Community Schools spends more per student on salaries and benefits than many neighboring districts.
Board member Anne VonDerVellen said it’s important for the school corporation to take action. "They’re not easy decisions," VonDerVellen said. "They’re not welcome decisions. But we have no choice."
Superintendent Michele Riise said a strong financial foundation is necessary to support students. “I will continue to partner with Policy Analytics and others to conduct an ongoing review of our staffing levels, our organizational structures, our class sizes and programs, and I will devote to bring you regular recommendations to the board and to share with the community, based on these findings,” Riise said.
Elkhart Community Schools holds the broadcast license for WVPE.
