Chadron area school districts see drop in state aid

Chadron area school districts see drop in state aid
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CHADRON, Neb. -- Only one of six area schools appears to be a winner in the state aid to education game.

Figures released by the Nebraska Department of Education last week show Chadron receiving $4,659,242 in state aid for the 2010-11 school year - $447,650 more than they received for the current academic year.

Superintendent of Schools Sherlock Hirning was out of town when the figures were released but said he believes the increase comes thanks to an increase in enrollment and from a $219,000 prior year correction. Prior year corrections are made after enrollment from the fall is compared to enrollment in the spring. While Hirning said he feels fortunate the district received a bump rather than facing a shortfall, the district will not be adding programs or staff. The increase is essentially enough to help maintain the programs and staffing currently in place when average salary increases are figured, he said. In addition, every district that receives an increase must always be prepared to be on the losing end the next year so it pays to budget conservatively.

While the state aid figures have been posted, Hirning said he is not counting on them to remain unchanged after last year's experience. Last year's state aid was changed several times before schools were given figures they could depend on as the state juggled funds to balance the budget.

"It makes one nervous when the Unicameral is still looking to absorb a $40 million loss in revenue," Hirning said. "I won't be comfortable with this until all the legislators go home."

Five other area schools are set to receive less state aid, and most will see a decrease of six figures.

Gordon-Rushville is the biggest loser. The district is scheduled to receive $2,827,438 in aid, a decrease of $436,304. Crawford will see a cut of almost half as the district will receive $333,905 this year, down $220,227.

The loss in both of those districts comes from the wind down of "stabilization funds."

Crawford Superintendent of Schools Dick Lesher said those funds replaced the sparse and very sparse factor in the aid formula when LB 988 was passed but were allotted for just two years. Roughly 50 districts, mostly in central and western Nebraska with demographics similar to Crawford's, received those funds, but the 2009-10 year was the final year for them. Lesher said his board is reviewing its options for making up the decrease.

"There are a lot of options, but unfortunately with most of the budget dedicated to staff it will be hard to do without doing something with salaries and staffing," Lesher said.

Both districts also suffered -- to a lesser extent -- from fluctuating enrollment. Lesher said Crawford saw a slight decrease, while G-R Superintendent Merrill Nelsen said his district has a transient enrollment that translates into either steady or slowly declining numbers.

With obvious frustration, Nelsen said his district and others similar to it are seeing the backlash from LB 988, which re-worked how the state aid money is allotted. Money is being shuffled around to other school districts and Gordon-Rushville is no longer on the winning end, he said.

For Gordon-Rushville, the options look bleak.

"We recognized that we were in financial distress a year ago when I came," Nelsen said. The district has already gone through a reduction in force of 14 positions and lost another six to attrition.

"We're a lot skinnier than what we were a year ago."

Unfortunately, G-R does not have the cash reserve it needs and will need to take a look at several options to save money, many of which are unpleasant. Those could range from cutting staff further to reducing rural attendance centers (G-R has five). Anything and everything could happen. The school will also look at applying for every grant the district is eligible for in an attempt to bring more money in, Nelsen said.

"But we have to look long and hard and identify what the district most needs," Nelsen said, adding that ideally those changes start as far away from the classroom as possible. G-R has not yet maxed out its levy, an alternative patrons do not want to see happen as taxes have continually increased even in years the district maintains a steady levy thanks to rising land valuations.

If there aren't changes to the process through which Nebraska awards state aid, Nelsen said he's afraid districts like his will be forced to continue downsizing, regardless of whether it's good for the students.

"I have watched with some distress the changes that have been happening," he said. "Unless there is a voice of outcry ... you'll just keep seeing more of the money staying back east."

Schools in this area of the state and their patrons need to advocate for the students to ensure that all of Nebraska's students are afforded the same opportunities, Nelsen said. While there are some senators that seem to understand that, Nelsen said with a Unicameral system all senators need to look at what is best for Nebraska students, not just students in their district.

"I don't honestly believe that's the view right now and it worries me."

In Hemingford, Superintendent Casper Ningen feels the much the same way. State aid is impacted by the number of senators from the east end of the state, he remarked. There are several new senators who probably haven't spent much time in western Nebraska, and he encouraged them to visit the area and see what the schools here are facing.

"Don't take us for granted," he said to them.

Ningen's district will also see a drop in state aid. Hemingford will receive $671,022 in 2010-11, a dip of $238,811. That district's drop actually comes because of an increase in property values.

"We had a substantial increase last year so they see our resources as being greater," Ningen explained. Property values rose by $27 million. That, combined with the fact that the school district hasn't maxed out its levy, led to the decline in state aid. Hemingford's current levy is set at 97 cents. Ningen said teacher negotiations and further increases in valuations will determine where any future levy is set and how much the district chooses to spend out of its cash reserve.

Other districts losing state aid for the 2010-11 year are Hay Springs and Sioux County. Hay Springs will lose $171,063 next year, putting the district's state aid at $1,151,795. Sioux County, which traditionally has received no state aid at all, will get $10,688 next year. That's $440 less than this year, the first year in many that the district qualified for aid.

As bad as the numbers for several of the districts are this year, both Nelsen and Ningen said this is the good year. Figures for 2011-12 will likely be even worse, they said. That's because the stimulus funds, which the Unicameral chose to put straight into the state aid formula so it could use state aid money to make up for other budget shortfalls last year, will disappear.

"Nebraska districts will have to consider not filling positions or - hopefully this doesn't happen in the Panhandle - laying people off," Ningen said.

State aid for every school district in the state can be found on the NDE Web site at www.nde.state.ne.us

 

 

 

Copyright 2012 Rapid City Journal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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