School District Facing $4 Million Shortfall

March 5, 2010

The Lyon County School District is facing a budget shortfall of about $4 million for the coming year, and the district is currently working on ways to trim its budget for the 2010-11 fiscal year.

According to figures provided by Superintendent Caroline McIntosh and Director of Finance Wade Johnson, the general fund revenues for 2011 are expected to be down just over $4 million from 2008-09, which equates to a six percent decrease.
According to a report prepared by Johnson, the reason for the shortfall is that the 2011 basic support guarantee decreased from 6,819 to 6,581 resulting in a loss of $2,013,194 in next year’s revenue. In addition, the 2010 basic support guarantee decreased from 6,673 to 6,594 resulting in a loss of $681,382 in current year’s revenue.

Local general fund revenues such as property taxes and motor vehicle privilege taxes are also projected to decrease.
The district had anxiously awaited the results of the special session of the legislature, which ended Monday, in order to know the extent of the cuts it would be forced to make.

"Six percent is a heck of a lot better than 22 percent," McIntosh said. "We wish it was a six-percent increase but given the climate and the fiscal emergency we’re in, I am very pleased that they spared us."

McIntosh said the district was expecting to receive documentation from the Department of Education on Thursday with the exact dollar figures. She said district staff was scheduled to meet with the district’s 17 principals Thursday morning to discuss what cuts they could afford.

"We’ll talk budgets with them and see what their sacred places are," she said.
She said the district is also sending a document to all its stakeholders to rank priorities and services from 1 to 5, and those will be posted on the district’s website for the public to see when they are completed.

McIntosh and a group of other superintendents had pleaded with Governor Jim Gibbons and the legislature to allow school districts to determine individually where to cut, and in turn she said she wants to give the principals of each school the same courtesy.

"This is a collaborative process and this affects everyone," she said. "We want to make sure we understand what the unintended consequences are, because there’s always unintended con sequences."

Because the district was hamstrung while waiting for the legislature and governor to complete the state budget, McIntosh said the district faces a short turnaround time to get its budget done.

The legislature allowed school districts to increase class sizes in grades 1 and 2 from 16:1 to 18:1 students per teacher and 3rd grade from 19:1 to 21:1. She said if the district opts to increase these class sizes, 12 positions would be eliminated, saving between $650,000 and $700,000.

The district is also still facing declining enrollment, and with the letters of intent due May 1, the district must quickly determine the number of teachers it needs for the next school year.

"It gives us a very short time to talk with our labor groups," McIntosh said.
The superintendent said she is confident the district will be able to deal with its shortfalls.

"I give great compliments to all of our administrators and teachers," she said. "They’re all team players who are focused on students and student achievement. Truly we have such an amazing staff so I’m sure it’s going to sort itself out."