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The Cape Henlopen School District is getting set to go back to the voters over funding approved for the new high school, set to open in 2010. The board wants to transfer part of the tax rate already approved for the new school into its operating budget. If approved, school district officials say the funds could act as an “insurance policy” for the district in the face of the state’s money woes.
The referendum would also seek taxpayer approval to use money already collected to construct a second artificial turf field at the new high school.
The school board is holding a special meeting at 4 p.m., Thursday, May 15, at the district office to decide whether to go forward with that referendum.
In 2006, voters approved a 45-cent per $100 tax increase to build a new high school and make improvements at district elementary schools. But, because the district received better-than-expected rates on its bonds, that tax increase has produced more revenues than needed for the school.
If board members approve a referendum, it would ask taxpayers to essentially move 8 cents of the debt-service tax rate into current operations. There would be no increase taxes because the rate for debt service would be reduced by 8 cents per $100 of assessed property value while the operations tax would go up by the same amount. Because the taxes collected are local funds, the board has complete discretion over spending it.
The district could also simply lower the tax rate by 8 cents.
The Department of Education plans to cut $30 million from the budget for next year. Those cuts might affect a number of school programs, although district Superintendent George Stone said there are no plans to lay anyone off in the district. Temporary positions and vacancies will be held until June 30 when the state announces what it will do. “Our biggest concern is that nothing will be decided until 11:45 p.m. June 30,” Stone said. That is the last day before the next fiscal year begins.
Stone said he believes all Cape’s positions will be funded. “We believe we’ll be staffed next year the same as this year,” he said.
Because the state’s budget isn’t finalized until the end of June, the district has to prepare for the cuts without knowing precisely what the cuts will be. Stone said at the board’s May 8 meeting he anticipates fewer cuts to personnel areas but more cuts to programs. It is possible, he said, that the district’s block grants – which fund discipline and cadre positions – could be hit hard. Stone said the district currently has $825,000 in block grants but could lose $400,000 to $500,000 of that money.
Summer school and outreach programs could be feeling the pinch as well.
The district reduced staff last year to improve its finances, so it now has money in reserves. “The money we have in reserves are one-time monies we have set aside,” Stone said. He said the district will tap into those funds only when absolutely necessary.
Board members said keeping programs, such as after-school homework help, up and running should take precedence over holding onto reserves.
“We have $1.2 million in reserves. The programs we’re talking about affect kids in Cape Henlopen. Rather than sit on half a million for technology, I’d like to see us keep these programs going,” said board member Gary Wray.
Board President Stell Parker Selby agreed. “I don’t want to see our students suffer,” she said.
Each penny of tax rate brings the district approximately $95,000, Stone said. If approved by taxpayers, this referendum would put about $800,000 a year into operations funds, he said.
“We need to see what the state is going to do. Where they cut is where we’ll want to fund, if we deem the programs are necessary,” said board member Allan Redden.
With the fiscal year coming to a close, the district now has to decide what to do with the debt service tax rate. The district’s options are to ask taxpayers’ permission to use the money for a different purpose other than that for which it was collected, or to give it back to the taxpayers through a reduction in tax rate, said board member Camilla Conlon.
She’s in favor of seeking this referendum.
“When the state takes back its $30 million, the district can continue to fund programs that won’t be funded any longer through the state. That’s a great thing,” Conlon said. The district won’t emerge unscathed from the state’s budget problems, but can be buffered against it, she said. “If the taxpayers approve this, we’ll be very fortunate,” she said.
Board member Spencer Brittingham sees good coming from the referendum, if taxpayers approve it. As long as the money goes to children and schools, he says he’s in favor of it. “This could help keep us from cutting programs, paraprofessionals and extra staff to keep our schools running,” said Brittingham.
“If our community will support this, we can probably assure them there will be no teacher cutbacks next year. It will put additional money into our budget so that if the state comes back next year and says it needs millions of dollars back, we’ll have this to fall back on,” he said.
The second turf field, in addition to easing scheduling difficulties on the existing field, would prolong the life of that field, Brittingham said.
The second field would not only extend the life of the first field, said Wray, but could be used for field hockey and soccer as well. “Our field hockey is one of our best sports. Our girls have been great for 35 years and they deserve a first-class field,” he said.
Dr. Pete Coveleski was not in attendance at the May 8 meeting but has been a vocal supporter of a second turf field at the new high school.
The second turf field has been an add-on option for the high school. Wray said if the referendum passes and supports the use of $1.6 million in tax dollars already collected to construct the field, the district could use any leftover construction money for furnishing the new high school instead of improving athletic facilities.
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