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The Cape Henlopen School District could generate about $10 million for additional capital projects maintaining the current tax rate for debt service on the new school project.
But so far the school board has not decided whether to lower the tax rate, effectively returning the money to taxpayers, or to go back to the voters and ask to use the funds for other projects.
It appears, however, the board is no longer considering building a pool, but the idea to install a second artificial turf field is still alive.
Some board members also advocate asking taxpayers’ permission to use the money to meet the district’s operating needs, mitigating expected state budget cuts.
“I’ve always been a big supporter of a pool, since 1973. But in reality, this is not the time for a pool,” said board member Gary Wray. “I’m not going to see one teacher go out the door for a pool,” he said.
Even with last Thursday’s legislation cutting the amount of money school districts may have to return to the state from $80 million to $30 million, board members say in uncertain economic times, the conversation should turn away from building a multi-million-dollar pool.
Board member Allan Redden also recommended removing the pool from the discussion. “I’d like to have the pool, but it’s not the right time. In the long run, the second turf field is probably better,” he said.
The money would be best spent on teachers, said board member Spencer Brittingham. He pointed out that the district would need more teachers once the new high school is completed and opened. “More students will be coming in because of the new school,” said Brittingham, driving a need for more staff.
District director of business operations Oliver Gumbs recommended the board ask to move the debt service tax rate to current operations in order to help the district cope with an impending state financial crisis at the Thursday, April 24 board meeting. District Superintendent George Stone said moving part of the debt service money into current operations would generate about $800,000 a year.
Debt service is tax collected so the district can pay interest and principal on bonds for projects such as new construction, and it must be approved by referendum. Because the interest rate on bonds for construction of the new high school turned out lower than estimated, the tax rate for debt service is higher than what the district needs to pay for principal and interest, said Stone. The district must go to taxpayers to ask if the money collected at the current rate can be used for additional projects or moved into another part of the budget, such as operating costs, or if the taxpayers want the rate lowered or the money given back.
Current operations is also funded by taxes and supports the local portion of teachers’ salaries as well as energy and supplies. That rate can only be raised or lowered through referendum, said Stone.
Dr. Pete Coveleski said the district should try to build the second turf field. Having a second field would help alleviate scheduling problems on the high school’s one turf field, he said. It would also attract sporting events such as tournaments to Cape. “It is really important to finish off this project as it was seen. That should be addressed immediately,” Coveleski said.
Brittingham said a second field would prolong the life of the first field. Redden noted that artificial turf fields cost significantly less to maintain than grass turf fields. The rest of the money should go toward contingency for the funding problems the district is anticipating, said Coveleski.
Wray agreed the second turf field should be a priority. And, he says, he supports the idea of moving funds from debt service into current operations, if the taxpayers agree.
State cuts budget cuts
The legislation that slowed budget cuts to schools led districts across the state to breathe a sigh of relief, said Wray. Since Cape’s school board went through budget cuts last year, Wray said the district is in a good position for this year. It is next year he says he is concerned about.
“Other districts will have to look at letting people go. They’ll have to go through the process we went through last year. We have money in our accounts to weather the financial storm,” Wray said of this year.
Stone said his next meeting with the secretary of education would give him a better idea of how much flexibility the district will have in making cuts. Moving debt service money into current operations will further help the district avoid losing teachers. He said he is optimistic the district can work around cutting teachers, possibly by cutting funding to some school programs.
Sen. Gary Simpson, R-Milford, said, “Even $30 million from schools is a lot of money, but at least it isn’t impacting jobs, so that’s a good thing.” School districts have to notify teachers by May 15 if they will not be employed next year. The state’s budget isn’t finished until the end of June.
Rep. Gerald Hocker, R-Ocean View, said the state had to ensure school districts didn’t notify teachers unnecessarily that they were losing their jobs, only to learn the state could fund teachers who had found employment elsewhere.
The resolution shows the state has some hard decisions to make, said Rep. Pete Schwartzkopf, D-Rehoboth Beach. Across the state, over a thousand teachers could have lost their jobs, he said. Laying off people should be the state’s last resort, Schwartzkopf said.
Hocker agreed. “We owe it to our kids to give them the best education possible, and you can’t do that by cutting teachers and increasing class sizes,” he said.
Sen. George Bunting, Bethany Beach, called the resolution “an absolute must.” Schwartzkopf said as far as raising revenue, all options are still on the table. Rep. Joe Booth, R-Georgetown, serves on the Joint Finance Committee. Of the $80 million cut school districts were facing, Booth said, “It would have had devastating effects on education for years.”
But the state still has to make up the difference, Booth said, and that means other departments in the state are looking at cuts of 10.5 percent, not 8 percent, because of the adjustments made to education. While the Legislature has taken steps to preserve teachers, some in government feel the education system is top-heavy in administration, Booth said. Examining the Department of Education and administrations in districts across the state is not off the table, he said.
Contact Leah Hoenen at leah@capegazette.com
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