Mt. Vernon Register-News

April 16, 2013

MVTHS given finance update

By RICK HAYES
rick.hayes@register-news.com

---- — MT. VERNON — If the formula for state funding is reduced to 82 percent for next school year as projected, the Mt. Vernon Township High School district will have lost over $1.4 million in general state aide over a three-year period.Superintendent Mike Smith produced the estimate on three-year cost estimates for the district during the Monday night meeting of the Board of Education."We prepared three projects because there are so many unknown variables in revenue, based on what we're hearing now from the state and on the federal level," Smith said. "What I've done is prepare a three-year analysis based on the assumptions as they are today, what we're hearing, and what our expenses are today, along with our programming and staffing levels. Tonight is just a planning document for the board to reflect upon, and we see as we get into next year what level of changes, if any, and what these variables are, and then we'll at least know what we may need to adjust moving forward."Smith based the assumptions on no cuts to programs and current staffing levels."What is not in here is eliminating any programs or reducing any staff because I wanted an even base line moving forward to where we are now, where we'll be, and based on state fund. Right now it's status quo. We know if some of those revenue projections hold true and they don't change in the next three years then we also realized that we may need to make some significant changes in expenditures too," Smith said.The District currently receives 89 percent in General State Aid, although there is strong speculation that percentage will decrease to 82 percent during the 2013-2014 school year. Smith also indicated due to the sequester, there will be a 5 percent reduction in federal funds."We hope that balances out and some of that state money returns and helps us out in making those decisions," he added.The Board approved a resolution for the approval of establishing a $1.5 million line of credit through Peoples National Bank. Smith said the District has issued a line of credit for the last several years, but hasn't had to use it."Unfortunately this year, we plan on accessing it before the start of the next school year," Smith said.IN OTHER BUSINESS:n The Board approved the designation of co-valedictorian/salutatorian, if necessary.n An early graduation request submitted by Tallis Jordan, who is enlisting into the U.S. Air Force was granted.n Letting of bids for dairy, juice and bread products, as well as ala carte vendors was approved.n Oehm Scholarship recipients were approved, although the names of those receiving the awards has been embargoed until a formal presentation is made.The District set 7 p.m. April 24 as the date for a special meeting to seat new board members elected earlier this month, and to possibly discuss the new campus with representatives of FGM and McCarthy Builders.