Low tax collections leave Munster schools facing staff cuts
MUNSTER, Ind. (AP) - A sharp drop-off in tax collections has been "catastrophic" for a northwestern Indiana school district already battling an $8 million deficit and will require staff cuts, officials say.
Munster school Superintendent Jeff Hendrix told The Times (http://bit.ly/1BkKRg2 ) that reduced tax collections in December left the district about $2.2 million short of the money it expected to receive. That shortfall is compounding an $8 million deficit the district has been struggling with in recent years.
The district typically collects 96 percent to 98 percent of the taxes levied. But because of appeals, some of which dated back a decade, and unpaid taxes, the collection rate dropped to about 44 percent.
"This was done with no warning from Lake County," Hendrix said. "The same impact occurred across all municipal bodies in Munster, as well as other cities and towns in the county. With our significant deficit and tight cash flow, a shortage of nearly $2.229 million was catastrophic for our district, rendering us unable to meet all of our obligations."
Hendrix said the district obtained an emergency loan from American Community Bank of Indiana and the Munster Civic Foundation allowing it to pay a $1.76 million bond that was due Jan. 5. But tough decisions are ahead, including reductions in staffing.
The superintendent said cuts will begin with non-certified staff members. He said School Town of Munster officials have worked to identify cuts that will have the least impact on classrooms.
Hendrix said the state's school funding formula is largely to blame for the crisis. The state provides an average of about $5,800 per pupil, but high-performing districts like Munster that have small numbers of students in poverty often receive less.
House Speaker Brian Bosma has said the current system is unfair because some districts receive more than $2,000 more in per-student support than others. That's left many fast-growing suburban districts scrounging for cash, while poorer - and often shrinking - districts in many urban and rural areas get more money to serve students in poverty and those learning English.
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Information from: The Times, http://www.thetimesonline.com