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West Lyon School Board makes first tough budget decision following state funding cuts

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"You could have heard a pin drop" aptly described the board room at one point during the West Lyon School Board meeting Monday, March 8. Board members were facing a decision none wanted to make -- a salary cut for teachers. Present to make their case against a cut were teachers, Trish Starrett, Deb Warner and Sandy Lantz. Others present were board members Gib Van Hill, Bryan Paulson, Kyle Knobloch, Rick Moser and

Scott Lee, as well as Superintendent Jim Hargens, Business Manager Bob Tracy, and West Lyon Herald editor Verdona Kelly.

Several years ago, in an effort to raise teacher salaries and move Iowa to a higher national ranking in that area, the State implemented the Teacher Salary Supplement Program, with each school district determining how those funds would be distributed. At West Lyon, a Teacher Quality committee was named, and they made the decision to allot the funds to teachers on an equal basis which the board approved.

In December 2009, a ruling was made that the the program should be included in the State's across-the-board cuts. That ruling is now under appeal, which could void any decision the school board makes, and the money would have to be paid to teachers retroactively.

Speaking on behalf of the faculty, Starrett said teachers are also faced with a rising cost of living and taking even a small amount from their salaries has a big effect. Warner added that teachers would like the board to find solutions to the budget problem so that teachers won't be the only ones affected. "Are there other places where cuts can be made?" she asked.

Discussion reached a point where there was very little more either side could say, and the room became uncomfortably quiet as board members pondered the issue. Superintendent Hargens broke the silence by asking someone to make a motion for or against the cut. The motion to cut was made, seconded and passed with Paulson casting the only dissenting vote.

A faltering economy over the past couple of years has left the State looking for ways to lower costs. The board members were aware of some $71,000 in cuts when they pre-pared the FY 2009-2010 budget. Then last October, Gov. Chet Culver announced a 10 percent across-the-board cut to state government spending and suddenly the West Lyon district was looking at an additional loss of $338,000 in state monies or a total General Fund's loss of $410,000. The spending cut coming after the district had already prepared the 2009-2010 budget added to the problem. As a result, the district will be dipping into reserve savings for the $400,000 needed to balance the 2009-2010 budget, leaving reserves of only $300,000 in savings.

"I'm getting real nervous about next year's budget," said Superintendent Jim Hargens. As the school board works on the FY 2010-2011 budget and beyond, members will likely have to make more tough and not always well-received decisions.

Matthew Gillespie of Piper Jaffrey's public finance services division met with the board concerning bids received for the issuing of School Infrastucture Sales, Services & Use Tax Revenue Bonds amounting to $640,000. Gillespie said that in an effort to save expenses and eliminate the need for a reserve fund, several financial institutions were asked to submit bids, foregoing the reserve fund as part of the bid. Security Savings Bank of Larchwood and Inwood submitted the bid with the lowest interest rate and board members approved the bid.

During 2009, Energy Savings Group did an energy savings audit of West Lyon and made recommendations which, if implemented, would cost about $2.5 million. Knowing the district could not afford such a large project, board members opted to start by making improvements in areas which would provide the biggest cost savings to utilities. Those improvements will save the district $30,000-40,000 per year, which will help improve the General Funds' bottom line.



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© 2010 West Lyon Herald Inwood, Iowa. All Rights Reserved. This content, including derivations, may not be stored or distributed in any manner, disseminated, published, broadcast, rewritten or reproduced without express, written consent from DAS.

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