Duneland School Board talks tax hike

CHESTERTON | Staff, School Board members, administrators and residents came out Monday night to hear of fiscal challenges facing Duneland School Corp. and discuss a possible tax hike.

The predicament, one faced by many Indiana districts, stems from a policy shift downstate in 2008. Legislators cut property taxes by shifting education funding to the state, a move that now has districts feeling pinched.

"We're at a precipice at no fault of our own. We face some important decisions over the next few weeks," said Superintendent Dirk Baer.

State funding considers factors such as household income. As a result, Duneland ranks 23rd to last in the state, officials said.

Gary schools receive $8,411 per student, tops in the state. Duneland gets $4,971 per student, well below the state average of $5,664, said Curt Pletcher, financial adviser with Umbaugh & Associates.

"The students who are hurt the most by our state funding formula are those in performing schools," Baer said.

Duneland schools already have made numerous cuts, said Assistant Superintendent Dr. Dave Pruis, and every $1 million in spending represents 20 teachers.

Pruis was careful to inform the public that the new athletic field opened last fall has nothing to do with the general fund budget and came from other funds, such as donations and the rainy day and capital projects funds.

"Not one dime, not one penny, came from the general fund, the people fund, in the school corporation," he said.

The corporation already has eliminated more than 30 staff members through attrition. It has frozen salaries since the 2008-2009 school year, cut staff hours, furloughed 12-month employees, restricted travel, reduced energy and supply costs and stopped subsidizing full-day kindergarten and summer school.

Pletcher presented three options for a proposed referendum to boost the district's property tax levy by 33 cents, 25 cents or 22 cents per $100 of assessed value. The owner of a $178,800 home would pay $185 more annually with a 22-cent increase.

"We have to consider the overall economic development part of this piece and what it means to have a sound educational system and what that means to your home's value," Baer said. "I know it's a big question but it's very, very important."

Parent Valerie Adams said Monday night was the first time she heard about the problem.

"I have questions about what will happen if the referendum doesn't pass. I just want to know what it means to my kids," she said. "They have 22 kids in their class now, so with teacher cuts will they have a classroom of 30 or 35 students?"

The board will decide at its next meeting whether or not to put the referendum on May's primary election ballot.