Superintendent Jim Ruse highlighted once again his concerns with the state’s new funding formula during the regular meeting of the Gallatin R-5 Board of Education held Nov. 16.
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“The financial situation is something we have to find an answer to,” he said. “It will cause major changes for schools our size if it is not improved, or if something else doesn’t occur,” he said. “Revenue simply will not carry us the way the new formula is set up.”
Mr. Ruse cites his concerns by the following example: In the previous year, the school received new money in the amount of $100,000 from the formula. This year the school drew $85,000. Money projected to be received for next year (2007-08) is a negative number, -$24,000.
He said it would take the school five years in the seven year formula to get back to where it is this year.
Next year the school will pay off a bond and use the revenue to get through yet one more year.
“That will get us two years into the new formula,” Mr. Ruse said. “The next five years, we’ll have to face reality and that will mean cuts.”
Gallatin is not alone, other schools including Trenton, Princeton, East Buchanan, Mid Buchanan, West Platte and North Platte, are in like situations.
While various other factors, like student growth and free and reduced lunches, are also considered in the new formula, it is the school’s population and its geography that play the most important roles as far as funding.
School districts with a student body of 350 or below have a special formula to help out. Schools may also benefit from a metropolitan dollar value modifier. The Hamilton School District, for instance, has students from Clinton County, within the range of Cameron, a metropolis, which allows the dollar value modifier por- tion of the formula to kick in.
School like Gallatin, which are above the cut-off in population, and which don’t sit next to a metropolitan area, are simply left out of the formula.
“Schools that don’t have those things going on, and that don’t receive other benefit factors that could make a difference, are simply allowed to fall through the cracks,” said Mr. Ruse.
Mr. Ruse and the board have made several attempts in the past to bring the matter to the attention of Missouri legislators. As part of that ongoing effort, Sen. Brad Lager will visit with Mr. Ruse in his office on Dec. 12.
“Senator Lager was instrumental on writing small schools grant,” said Mr. Ruse. “He doesn’t want to see any of his schools go away. But he can’t do it alone. He has to have help from the metropolitan areas.”
During old business at the meeting, the board heard an update regarding Spectrum Clear- wire. A contract has been signed to lease four radio waves to the company and awaits approval by the FEC.
If the agreement comes about, the first payment to the school will be around $134,000, then about $1,500 a month after that for the next 30 years, including cost-of-living increases should the company continue to succeed and prosper.
The federal government made the frequencies available to schools for licensing in 1992. Many schools did not keep their licenses up to date and had their frequencies withdrawn. Some schools, including Gallatin and Winston in Daviess County, did keep up their licenses.
Gallatin leased its licenses once before in association with a tower that went up at Maysville; however, that company dissolved. Nevertheless, the school has received around $90,000 over the past 10 years from leasing the radio waves.
Superintendent Jim Ruse said it was an unusual project for the school to be involved with in the first place. “We’ve kept it up since it started,” he said. “Now demand for the frequencies has exploded, with more air waves needed for cell phones, cameras and computers.”
The total 30-year-package involving Spectrum Clearwire is somewhere over a million dollars. But the school is projecting that demand for the frequencies will last only 10 years.
Bills in the amount $320,154 were paid as presented. The board went over the ledger and reviewed year-to-date expenditures.
The board set a long-range planning workshop for January 15. Members have been working off and on since August to outline new goals for the school.
A couple of items, such as monitoring heating and cooling of foods, were noted for improvement after the kitchen inspection.
Superintendent Ruse presented a comprehensive budget to the board. The two-year comparison allowed board members to compare this year’s financial condition to last year’s with audit in hand.
Mr. Ruse told the board about arrangements being made to purchase another bus. Two busses will be purchased this year, then a year will be skipped. The purchase is to avoid the new engine exhaust emissions control requirements on the 2007 buses.
The board discussed payoff of the 1996 bonds on the elementary addition; and whether to renovate or replace completely the football field bleachers. Mr. Ruse reported that the music room at the elementary has been completed. The room was added in order to make room for a fourth grade class. The music room is now located on the stage with a soundproof wall. The high school building roof received a rubberized spraying over valleys and edges.
In order to expand the elementary art program, they are expected to receive an additional kiln for baking pottery.
The board heard a report on property insurance due in December. There was no increase for insurance. There was an increase of around $60,000 for workman’s compensation to keep pace with increases in salaries.