Gibboney urges caution in approaching 2021 GCSC budget

With an emphasis on the uncertainty surrounding budget variables, Greencastle Community Schools Supt. Jeff Gibboney presented the proposed 2021 budget Monday evening.

The superintendent noted the administration’s caution in approaching the coming 18 months and beyond for GCSC.

“When we’re looking at our revenue forecast, we always want to be conservative and that helps protect you in case there’s a shortfall,” Gibboney said. “If you overproject your revenue and then you overspend, then you’re really going to have to dig yourself out of a deep hole.”

This approach applies to both the Education Fund, which is funded through state tuition support based on average daily membership (ADM) as well as the Operations, Debt Service and Pension Bond funds, which are funded by the local property tax levy.

Money for the education fund always comes with some uncertainty, as factors that affect it include ADM counts in September and February, the number of students receiving various honors diplomas, various special education variables and a number of variables related to career and technical education.

The number of students attending school virtually during the COVID-19 pandemic has only further complicated the matter. State leaders including Gov. Eric Holcomb, Supt. of Public Instruction Jennifer McCormick and General Assembly leaders say they want to fund schools fully, rather than the 85 percent per virtual student.

However, no solid plan has emerged from Holcomb or legislators, who would ultimately have to make the decision.

“The most recent thing you’ve probably heard in the news is Gov. Holcomb talking about potentially moving our September count day to later in December,” Gibboney said. “That doesn’t guarantee anything for our school district in terms of funding. I think we have shared and Dr. McCormick has shared that during this crisis and during this pandemic, schools should be funded at 100 percent.

“The legislature and the governor himself haven’t taken any action to make that possible. All they have done is talk about it,” Gibboney added. “The only thing to fully protect our funding that we receive through tuition support, through our student count, is for the General Assembly to convene and take action and pass a law.”

Based on the assumption that each of GCSC’s 1,727 students will be funded fully, the corporation is budgeting for $12,409,004 in tuition support, a projected loss of $6,353 from last year.

Gibboney noted that funding per student has increased slightly, but GCSC currently has 63 fewer students than the fall 2019 ADM, accounting for the reduction in funds.

Per state statute, Gibboney requested and was granted permission to advertise the 2021 tax rate and levy, which apply to funds that fall outside the education fund.

At a rate of $1.8582 per $100,000 of assessed value, the advertised tax levy for 2021 will be $7,116,742.

Gibboney emphasized that the final numbers will not match these perfectly, as the Department of Local Government Finance advises entities to make estimates based on 85 percent of assessed value in the district.

This means that while the assessed value for the GCSC district is in the neighborhood of $450 million, the rate was determined based on approximately $383 million.

When the AV almost inevitably comes in higher, the tax rate will, in turn, be lower.

The board approved advertising the 2021 budget.

The final budget is not actually approved by the Greencastle School Board, due to it being an appointed board.

Instead, Gibboney and Treasurer Kellie Romer will have to go before the Putnam County Council on Sept. 15 for a public hearing regarding the budget, with final approval from the County Council set for Oct. 13.

Additionally, the school board itself will have to conduct a public hearing on the Capital Projects and Bus Replacement funds during its Sept. 28 meeting, with final approval of these coming Oct. 26.

These plans technically no longer exist, having been rolled into the Operations Fund, but state law still requires schools to develop a plan for each.

Throughout the budget discussion, Gibboney urged caution in approaching the budget for 2021 and beyond.

“We’re not in a dire situation at the moment but if we’re not careful, we will be because we don’t have a heavy cash reserve,” Gibboney said, noting that should there be a shortfall or delayed payment from the state, it would force GCSC to dip into its Rainy Day Fund or borrow money.

“The good thing is, we have time and we have a plan,” he said. “It’s going to take time but we will dig ourselves out of the situation we were in to be in a more effective situation later on.”