State funding changes could lead IPS to tap rainy day fund

PHOTO: Scott Elliott
The IPS school board approved a change in the rules for a rainy day fund that made $21 million more accessible.

Indianapolis Public Schools can now crack open a previously restricted rainy day fund if it needs money to fill budget gaps — a move the school board could soon need to make.

The board today approved a change in the purpose of the fund, which had outdated rules that kept the district from accessing about $21 million. At the same time, IPS is looking for ways to fill a funding gap for the upcoming school year caused by legislative changes, which will cost millions in state funding, and any enrollment losses.

“How do we cover that deficit for this year?” Deputy Treasurer Paul Carpenter Wilson said. “That’s the question. This is a first step to make funds available for any funding shortfall.”

The rainy day fund had outdated rules requiring it be used either for desegregation payments, which the district no longer makes, or to cover pension obligations that no longer apply.

Superintendent Lewis Ferebee told the board on Tuesday he could be back soon with a proposal to use money from the fund.

Why? One possible reason is that the district’s income is dropping.

For the first half of 2015, IPS’s general fund income fell by 4.3 percent. Part of the problem is a continuing drop in state aid.

The district expects a tiny bump up in per-student state aid over the two next years under the state budget approved in April, but changes to the way the state calculates extra aid for poor students will cost the district big money.

IPS officials in April projected a loss of $6.5 million in state aid overall for the next two years if its enrollment stays steady. The loss could be much bigger if fewer students enroll. The district also lost nearly $1.4 million in federal Title 1 poverty aid this year after changes in the U.S. Census count of families in poverty.

The district is shifting from a calendar year budget to a school year budget that will run July 1 to June 30 for the upcoming year. Its $116 million general fund spending for the first half of 2015 slightly outpaced its income by about $761,000. But it began a new budget year this month.

In March, district officials said the 2015-16 general fund budget for day-to-day expenses would closely match income to expenses, and therefore would not produce a surplus as it did the past two years. IPS had consecutive surpluses of $4 million and $8 million.

School officials don’t expect to see enrollment grow, as it did in 2011-12 and 2012-13, or fall dramatically like it did for several years before that. It will most likely remain steady this year.

Despite the thin financial margins, Ferebee continued to promise teachers a raise will result from negotiations with the union that are soon to begin. Teacher raises remain a priority for the district no matter what its financial condition, he said.

“Whether there’s room or not, there are going to be teacher raises,” Ferebee said. “We need to be more competitive with compensation.”

Another potential budget problem is a drop in property tax collections, which pay for busing, building repairs and other costs outside of the classroom.

IPS already collects a paltry amount of the property taxes it is due: 47 percent last year. But that number dropped to 45.3 percent for the first half of 2015. District officials said they are asking county officials to help them figure out why.

The board also approved the hiring of a new treasurer. Weston Young, a financial adviser based in Zionsville who has a fourth-grader in IPS and last year was a member of IPS’s budget development committee, will be the district’s chief financial manager. He started work today.


What's Your Education Story?

As the 2018 school year begins, join us for storytelling from Indianapolis educators

PHOTO: Dylan Peers McCoy/Chalkbeat
Sarah TeKolste, right, and Lori Jenkins at a Teacher Story Slam, in April.

In partnership with Teachers Lounge Indy, Chalkbeat is hosting another teacher story slam this fall featuring educators from across the city.

Over the past couple of years, Chalkbeat has brought readers personal stories from teachers and students through the events. Some of our favorites touched on how a teacher won the trust of her most skeptical student, why another teacher decided to come out to his students, and one educator’s call to ramp up the number of students pursuing a college education.

The event, 5:30 p.m. Thursday, Sept. 13, is free and open to the public — please RSVP here.

Event details:

5:30 p.m. to 7:30 p.m.
Thursday, Sept. 13, 2018
Tube Factory artspace
1125 Cruft St., Indianapolis, IN 46203
Get tickets here and find more on Facebook

More in What's Your Education Story?

School safety

Hiring more security officers in Memphis after school shootings could have unintended consequences

PHOTO: Jahi Chikwendiu/The Washington Post/Getty Images

Tennessee’s largest district, Shelby County Schools, is slated to add more school resource officers under the proposed budget for next school year.

Superintendent Dorsey Hopson earmarked $2 million to hire 30 school resource officers in addition to the 98 already in some of its 150-plus schools. The school board is scheduled to vote on the budget Tuesday.

But an increase in law enforcement officers could have unintended consequences.

A new state law that bans local governments from refusing to cooperate with federal immigration officials could put school resource officers in an awkward position.

Tennessee Education Commissioner Candice McQueen recently reminded school personnel they are not obligated to release student information regarding immigration status. School resource officers employed by police or sheriff’s departments, however, do not answer to school districts. Shelby County Schools is still reviewing the law, but school board members have previously gone on the record emphasizing their commitment to protecting undocumented students.

“Right now we are just trying to get a better understanding of the law and the impact that it may have,” said Natalia Powers, a district spokeswoman.

Also, incidents of excessive force and racial bias toward black students have cropped up in recent years. Two white Memphis officers were fired in 2013 after hitting a black student and wrestling her to the ground because she was “yelling and cussing” on school grounds. And mothers of four elementary school students recently filed a lawsuit against a Murfreesboro officer who arrested them at school in 2016 for failing to break up a fight that occurred off-campus.

Just how common those incidents are in Memphis is unclear. In response to Chalkbeat’s query for the number and type of complaints in the last two school years, Shelby County Schools said it “does not have any documents responsive to this request.”

Currently, 38 school resource officers are sheriff’s deputies, and the rest are security officers hired by Shelby County Schools. The officers respond and work to prevent criminal activity in all high schools and middle schools, Hopson said. The 30 additional officers would augment staffing at some schools and for the first time, branch out to some elementary schools. Hopson said those decisions will be based on crime rates in surrounding neighborhoods and school incidents.

Hopson’s initial recommendation for more school resource officers was in response to the school shooting in Parkland, Florida, that killed 17 people and sparked a wave of student activism on school safety, including in Memphis.

Gov. Bill Haslam’s recent $30 million budget boost would allow school districts across Tennessee to hire more law enforcement officers or improve building security. Measures to arm some teachers with guns or outlaw certain types of guns have fallen flat.

For more on the role and history of school resource officers in Tennessee, read our five things to know.

Sheriff’s deputies and district security officers meet weekly, said Capt. Dallas Lavergne of the Shelby County Sheriff’s Office. When the Memphis Police Department pulled their officers out of school buildings following the merger of city and county school systems, the county Sheriff’s Office replaced them with deputies.

All deputy recruits go through school resource officer training, and those who are assigned to schools get additional annual training. In a 2013 review of police academies across the nation, Tennessee was cited as the only state that had specific training for officers deployed to schools.