The Cambridge School District is likely to end up with $200,000 less in state aid this year, but that isn’t the worst of it.
“The bigger concern school districts are talking about is what are we going to do or what are we not going to get next year,” Supt. Tom Akers told the school board Tuesday night, Feb. 23.
Akers said after looking at a four-page summary of the thoughts of school superintendents from around the state, he concluded Cambridge could receive 10 percent less in state aid next year, or a $212,300 loss on a $4.9 million budget with a $3.7 million education fund.
He said the state is unfairly forcing school districts to issue working cash warrants and pay for them with local property taxes.
“The question is, who is being asked to be the bad guy?” he said.
Noting Cambridge is asking taxpayers who are “strapped enough” to cover bonds for the grade school’s geothermal heating project, he said he was “very hesitant” to tax them for any more.
He said next year’s budget is nearly done, but there’s a $56,290 deficit even after certain savings measures. Three-and-a-half teachers are retiring, and Cambridge won’t replace 1 1/2 positions at all. There will be a cap on travel, and the school now has a “zero growth” supply policy.
He noted another option is to cut people.
“I think we are pretty thin the way it is, but if it comes to that, it has to happen,” he said. Akers recalled the 1970s and 1980s when interest rates were 10 percent and above and the school district was able to build up reserve funds.
“The reason I give that little history lesson is that we built reserves because you guys were fiscally responsible. We can tap into that and use that,” he said, adding it’s like a family spending from savings to repair a car. “But the funds will not last forever, guys,” he added.
The school district has $1,644,418 in cash reserves in all funds, or nearly a three-month supply of cash on hand, including $840,954 in the education fund which covers salaries. Akers notes the amount fluctuates and will rise when the first half of property taxes are received.
He asked for the board members’ suggestions in coming weeks.
The board also:
• Congratulated the high school girls’ basketball team on going to state.
• Authorized the issuance of $1 million in health life-safety bonds for the grade school geothermal project at $78,000 to $79,000 per year through 2029, at a fixed rate of 4.69 percent including the cost of issuance.
• Approved leasing two school buses from Midwest Transit at $10,072 each.
• Approved three-month fuel bids for $2.5820 for gas and $2.7220 for diesel.
