School costs shifting to local taxpayers

A recent financial audit of School District 6 shows a revenue shift over the past few years. In fiscal year 2012, the school district received about $10 million in state funding. By 2014, that number had dropped to $9.6 million.

Meanwhile, local property tax revenue increased from $6.3 million in 2012 to $6.6 million in 2014. Property tax revenue increased 4.53 percent over the previous fiscal year.

Falling student enrollment over the years has impacted state funding, which is based primarily on the number of students attending a school district. Student enrollment peaked in 1998 and declined until 2013.

Over the past 15 years, the elementary district lost 279 students or 16 percent, while the high school district lost 230 students or 24 percent. The enrollment drop is a concern for the district, according to Ross Stalcup, the certified public accountant who wrote the report.

“As enrollment declines, so does state funding,” he said. “The savings associated with serving fewer students does not keep up with the decrease in state funding. Every year, the district looks at the student population by classroom to determine if it is possible to reduce (teachers). However, the district is limited with regards to this decision. Not only are classroom sizes mandated by state statute, the district also ensures the sizes are such that they provide students with a quality learning environment.”

Stalcup said decline in enrollment may not justify cutting a teacher position. He criticized the state funding formula for shifting school costs onto local, particularly residential, taxpayers.

“The current funding formula dictates that while enrollment declines, the burden shifts to local taxpayers to maintain funding,” he said.

Since 2009, state funding to School District 6 has dropped by more than $886,000, Stalcup reported. The district made up some of that loss when voters approved a $478,000 tax levy.

“The funds will be used to offset the perpetual reductions to state funding over the past four years,” he noted.

School District 6 had about 2,084 students in grades K-12 at the start of this school year. Total revenues were $22.2 million in fiscal year 2014 and total expenses were $21.9 million, according to the audit.

About $13.2 million in spending went directly to educational programs, $1 million went to student support services, $1 million went to administration, nearly $1 million went to feeding students, nearly $1 million went to transportation, and $2 million went to operating and maintaining buildings.

The audit pegged the market value of the high school district at $1.3 billion with a taxable value of $35.8 million. The estimated population of the district is 14,392. The elementary district has a smaller valuation as it encompass a smaller area.