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Rapid City School budget manager says allowing districts to tap capital outlay budget would simply transfer one fund.

School district cool to bill that would allow use of capital outlay funds

School district cool to bill that would allow use of capital outlay funds
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A legislative bill that would temporarily allow South Dakota schools to tap their building funds to get through the current economic slump would only be transferring one problem and creating another, said Rapid City School district's budget manager.

Dave Janak said he isn't excited about SB91, which would let schools dip into capital outlay funds to pay costs of transportation, insurance or utilities. The capital outlay fund generally is reserved for building or equipment needs.

The Senate voted 25-9 on Thursday to pass the bill.

The authority to spend the funds for additional uses would stop after five years.

The Rapid City school district, like many districts, is reducing budgets for the 2009-2010 school year, citing larger costs and shrinking revenues. But spending capital outlay money on other uses is not the answer, Janak said.

Of the $16 million budget, $12 million pays for debts, new construction, technology updates and curriculum supplies. The other $4 million is for maintenance.

Divert that money and you may deplete the funding for equipment and buildings upgrades. "And then, you've got buildings condemned," Janak said.

The district operates several aged buildings, he said, which cost a lot to maintain.

"Dakota Middle School was the summer White House for Calvin Coolidge," he said. "Wilson (elementary school) is on the National Historic Register list. … They're very usable, but there's a cost associated with it."

The Associated Press contributed to this report.

Contact Kayla Gahagan at 394-8410 or kayla.gahagan@rapidcityjournal.com

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 This material may not be published, broadcast, rewritten or redistributed.

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