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Home > Blogs > Springfield Schools News and Issues > Archives > 2009 > March > 17 > Entry
Why is Northwestern making cuts?
In tomorrow’s News-Sun, I am writing about Northwestern’s upcoming discussion of $500,000 in budget cuts.
Northwestern board members will consider this week a slate of cuts that officials say will reduce spending by $500,000 a year.
Superintendent Anthony Orr will recommend a plan that includes eliminating 6 full-time staff positions, reducing extra duties given to staff in supplemental contracts and delaying the purchase of a new school bus.
“Its my responsibility as a superintendent to be a fiscal steward for the community,” said Orr. “I believe in fiscal conservatism. It’s planning for the long term.”
If approved, the cuts would shave approximately $500,000 from the district’s budget for the 2009-10 school year, according to estimates.
Check tomorrow’s paper for more detail on the proposed cuts.
In an earlier conversation with Superintendent Tony Orr, he explained that the district was looking at these cuts to stay out of the red in the future.
It’s a bit more complicated than that. The district is not balancing its budget for next year (that’s already in place), but actually is reducing deficit spending.
This is how it’s working:
Just like households are recommended to keep a couple months’ rents or mortgage in savings, accounting practices recommend having a reserve of the cost of 60 days’ operations for school districts.
For Northwestern, that’s about $2.7 million, according to Orr.
In June, Northwestern will end this fiscal year with about that much left in its general fund, according to the district’s five year forecast. Districts do have other types of funds but those are regulated on how you can spend that money and likely wouldn’t be available to use to supplant general fund spending..
But if the district keeps spending the way it is, that reserve will drop to $1.6 million in fiscal year 2010 and about $130,000 in fiscal year 2011.
That means Treasurer Dave Bollheimer would have to predict all of the district’s spending in fiscal year 2011 within less than 1 percent of the budget. It also means that any unexpected expenses could dwindle that very modest reserve quickly. I don’t know any treasurer who wouldn’t be sweating over that small of a reserve.
If approved, the cuts the board will discuss Thursday will improve the district’s cash position in fiscal year 2011, according to Orr.
The cuts total about $500,000.
Permalink | Comments (4) | Post your comment | Categories: Northwestern Local Schools
Comments
By Howard
March 18, 2009 7:19 AM | Link to this
It’s about time, the schools LEARN that times are tough. They are NO LONGER immune to LAYOFFS and CUTS.By Citizens Against moral and legal abuse
March 18, 2009 7:23 AM | Link to this
Clark County needs to consolidate school districts. To many superintendents. One would do for the entire County cutting expenses in personnel not needed and duplicatedBy AAAA
March 18, 2009 7:37 AM | Link to this
Citizen Against moral and legal abuse give me a break. The last thing I want is someone with no regard for my kids running the district. I supose you would be fine with the State running the district from Columbus. The issue here is because of money. When a district has not passed new money since 1992 I think they have done very well in streching their dollars. Look at the cuts they are proposing its accross the board. Not just one area. That is good money management. Some combined district board will not have the same amount of concern for NW kids.By KJensen
March 18, 2009 9:46 AM | Link to this
A Fiscal Steward? You have GOT to be joking? Put the word “Arrogant” in front of the word Fiscal and that would sum up the title quite well. That school CANNOT afford to lose 6 full time staff positions, especially if it is a teacher related position. Those children need their teachers and we need those “heroic” types of teachers that could change a child’s life forever. Some of those children at that school are already being treated like “gizmos” and I don’t fault the teachers for that. Northwestern used to be a great school. Somebody needs to open the minds of these school administrators, but unfortunately that would take a large number of parents and sacrifice. I am in agreement with the previous post and that is to CONSOLIDATE the school districts and keep it to one and maybe an assistant superintendent. Oh yeah, and one last thing: Why isn’t the Superintendent cutting his (six figure bracket) pay?