HSE OKs budget and hopes voters OK referendum

Tania E. Lopez

Nov. 5, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- There's going to be some more belt tightening at Hamilton Southeastern Schools.

The School Board on Oct. 26 voted unanimously to approve a $177.5 million budget for 2010.

The budget includes the $5.5 million in funding that officials hope voters will approve in a Nov. 10 referendum.

The district's capital projects fund in the budget has decreased significantly -- money used to purchase classroom computers, make roof repairs and fund building maintenance.

HSE has budgeted $14.7 million in 2010 for the fund, down from $17.8 million in 2009.

HSE's chief financial officer, Mike Reuter, blames the state's property tax caps for the decrease and said a bigger impact will be felt in 2010.

In 2009 alone, Reuter said HSE lost 19 percent of assessed valuation in the district due to the tax caps -- about $2.8 million.

Those dollars are funneled into the capital projects fund. In addition, the district's assessed valuation has not kept up with student growth.

In 2009, Hamilton Southeastern saw a 6 percent increase in its student population while the assessed valuation dropped 19 percent.

Reuter estimates HSE would lose more than $800,000 in capital projects funds each year for the next three years. That means there may be more of a lag time in replacing technology and updating classroom computers.

"A few years ago, a replacement cycle for a computer might have been four years. That's been extended to five or six years. We're not really able to add any new technology initiatives or new curriculum initiatives tied to technology. The funds just aren't there," said HSE business manager Cecilie Nunn.

Losing capital projects dollars means the district is down to focusing solely on essential projects at this point.

The technology fund makes up 40 percent of the overall capital projects budget.

The rest goes toward roof repair and replacement, said Nunn.

"It means less dollars for building repair, for mechanical system repair and replacements," she said.

Districts are required by statute to put together a three-year capital projects plan. HSE plans five to six years out.

So right now, said Nunn, the district is addressing the most critical projects first: roof replacements. Those projects will focus on the oldest buildings in the district, which include Fishers Elementary, Fall Creek Elementary and Hamilton Southeastern High School.

Newstex ID: KRTB-0095-39481007