"I received a draft of the funding formula, which is based on what the governor's proposal has determined," Schroeder said.
The basic grant given to CCSC by the state funds most of the general fund and is budgeted to allow for employees salaries and benefits. In 2009, the basic grant was $27,787,112. With changes made in the proposal by the governor, the 2010 grant would be $27,388,191 with a loss of $398,921. In 2011, with the continuation of the proposal, the amount would be $27,030,082, a loss of $757,030 compared to 2009.
"Over the course of two years (CCSC) would lose a total of $1,155,951 in the basic grant," Schroeder said.
The governor has proposed the school corporations to use stimulus money in an effort to make up for the difference in funding.
If stimulus money is used to make up the difference in 2010, there will be $331,578 in increases, which means the amount would go up $28,118,690 instead of the $27,787,112 and in 2011, the amount will be $27,760,581.
Over the course of two years, with the use of only the basic grant, CCSC will lose $1,155,951. With the stimulus proposal, there is an addition of $305,047 during the course of the two years.
CCSC will rank 21st in the state of Indiana with the loss of dollars, while Indianapolis Public Schools will rank first.
"Through all the communication we have received, we have been told not to spend the stimulus money on recurring benefits," Schroeder said. "So, I'm a little confused to be told that we shouldn't be using this money for continuing expenses and yet they add this money into the formula for the basic grant that is used for continuing expenses."
The proposal talks about a 2 percent average increase across the state of Indiana, which means not all corporations will see that much of an increase.
"From the information we received previously on stimulus money, superintendent's believed we would be seeing that increase in the basic grant without the aid of stimulus dollars," he said. "There is a real problem in communication at the state level, at the governor's office, that is filtering down to the schools."
Schroeder said CCSC must have the first budget advertisement by Aug. 2 in order to meet the deadline, and a budget will need to be put together before knowing what the government plans to do with the money.
The federal government regulates what stimulus money can be spent on, and the money cannot be supplanted, only supplemented.
"We need to be careful on additional expenditures, because if we are going to lose money from one year to the next, it's going to be very hard to recommend any increases in programs that would be beneficial to kids unless we gain stimulus or grant money," Schroeder said. "If we lose this amount of dollars, then we will have to look next year at cutting costs anyway we can. We are OK this year, we have a structural surplus, but if it is used up, it is going to be very difficult in the future."
In other business during Thursday's meeting, board members:
* Approved 6-0 to declare the modular classrooms at Meridian and East Side Elementary obsolete and to be sold or discarded. Board member Dottie King was not present,
* Accepted 6-0 food service bids for bread and bun products, milk and dairy products for the period of Aug. 1, 2009-July 31, 2010, and
* Approved 6-0 the transfer of $422,500 from the school bus replacement fund to the rainy day fund, which can be combined with the $550,000 already transferred to the rainy day fund to purchase a bus garage if the board decides to at a later date.