NCSD has $1.2 million decrease in general fund

A more than $1.2 million decrease in the school district’s general fund for fiscal year 2016 was announced at the Newton Community School District Board of Education meeting on Monday.

Gayle Isaac, director of Business Services, gave the year end treasurer’s report to the school board at its regular meeting at the Beard Administration Center.

At the start of FY2016, the school’s general fund sat at $3,096,115. By the year’s end, the fund decreased to $1,835,789, causing concerns from the board.

“It has been a decline over the past few years,” Isaac said. “When I got here in 2009, we were at $4 million and we have been going down. This is the biggest drop we have made in a number of years.”

Three major contributing factors to the decrease came from lost revenue, a special education deficit and tuition costs for the Gateway program through DMACC. Isaac said last year’s decrease was much more substantial than he has seen in previous years.

In part because of a decrease in enrollment, the district saw approximately $400,000 fewer dollars in revenue, a continuing issue for the schools.

“Our revenue stream is based on our enrollment, which as been decreasing,” Isaac said. “Our expenses have not kept up that decrease and our expenses have been going up as our revenue is going down. It is a tough balancing act.”

The largest portion of the decrease comes from a $600,000 special education deficit. That is more difficult to address, Isaac said, as the services need to be provided to the students whether funding is provided through state or other sources.

Finally, more than $130,000 was paid to DMACC for tuition for the Gateway to College program, a partnership between the school and college to provide education and support services to help students complete requirement to receive their diploma.

“The special education deficit was a big factor, the Gateway tuition was unexpected,” Isaac said. “Those three major factors caused us to go down.”

Board member Andrew Elbert asked if there was a remedy or solution to begin to correct the trend. He said he has never seen the fund that low and it is very concerning.

“Are we trying to address and resolve the issue, yes. That is what we are doing behind the scenes now, how can we stop the bleeding now, this year? I am concerned about right now, this year,” Isaac said. “We didn’t realize this until June when we did our certified annual report. Realizing it now, we’re trying to stop it right now. Then we have to plan for next year to make sure we make the necessary adjustments.”

Superintendent Bob Callaghan also said the topic of state funding and the timing it is decided and received would be addressed with the newly elected and sitting state lawmakers.

In other business:

• Zachary Jenson was approved as the new head boy soccer coach.

• The Newton chapter of FFA was approved to travel to the National FFA Convention from Oct. 19 through 22 in Indianapolis, Ind.

Contact Jamee A. Pierson at 641-792-3121 ext. 6534 or jpierson@newtondailynews.com