Scenario: Beginning fund balances after consolidation

JOHN DAY The Grant School District No. 3 ad hoc financial committee has voiced a reluctant recommendation: close Mt. Vernon Middle School.

 Closing the campus would allow the district to stave off a financial crisis, due largely to declining enrollment and state funding.  Students in grade 6 would move to Humbolt Elementary School, and grades 7-8 would move to the Grant Union High School campus in John Day.

 Superintendent Mark Witty is scheduled to present the committees recommendation to the school board for possible approval Wednesday, Jan. 12, at its regular 7 p.m. meeting.

 The committee met Tuesday, Jan. 4, to consider the districts options. Members weighed in on various ideas for saving money over the next several years a period in which continuing drops in enrollment are expected to drastically decrease funding from the state.

 The group looked at cutting cafeterias, athletics and other options. However, in light of the local, state and federal economies, consolidation of grades into fewer sites appears to be the most effective way to keep the district in the black, Witty told the group.

 Unsure if consolidation would be enough, committee members also suggested that other cost-cutting measures be taken.

 The committee was made up of parents, community, staff, school principals and board members.

 Witty showed a projection of what the budget would look like at the beginning of each school year after all current bills are paid and if no action is taken.

 The beginning fund balance projection (see top chart on Page A10) shows that at the beginning of next school year, there would be $814,335 to run the district substantially lower than this years unaudited starting figure of $1,259,145. The number decreases over the next few years to minus-$1,416,686 in 2015-2016.

 Looking at the scenarios for closing school cafeterias, eliminating athletics, reducing program offerings by one or two electives, the group could still see the district dropping into the red in between three and five years.

 With consolidation, the district could stay in the black for next five years with beginning balance projections that erode, but not into the minus territory, from  $814,335, to $45,314.

 The fixed costs of the Mt. Vernon building would be reduced, although there also would be expenses in consolidation, said Witty. The district would need to move middle school modular buildings to John Day, and also adhere to various contracts.

 Witty said he already is seeking to reduce staffing through retirement and attrition, although a reduction in force cant be ruled out.

 This (consolidation) isnt something we desire to do, but we also have to be responsible. Our programs revolve around 800 kids, not 650, he said.

 Enrollment figures for December were 260 at Humbolt Elementary, 124 at Mt. Vernon Middle School, and 211 at Grant Union High School.

 We need to substantially pull away from the (Mt. Vernon Middle School) site to maximize spending on kids, Witty said.

 Each year, fixed costs for the building are about $60,000.

 Our goal is to save 60 percent of that (by consolidation) at first and we can eventually save all of that, he said of those fixed costs.

 The committee saw no easy answers.

 Even with consolidation, the financial picture doesnt look rosy, said King Williams, a community member of the committee. He and other suggested that every expense be reviewed.

 Ive spoken to people in the community. Theyre wondering if it (consolidation) is enough, said parent Levi Manitsas.

 Witty agreed that every department should be looked at, from the district office down.

 We need to be able to save enough in the next few years to give us room to maneuver (and weather any big drops), he said. We will continue to look at ways to do things differently.

 Consolidation gives us more options, said Kathy Smith, Grant County treasurer and member of the committee.

 I dont like any of it, but based on the current financial situation in the state, all options need to be considered, said teacher Didgette McCracken, certified employees representative.

 Community representative Ray Stegman suggested looking at raising participation fees for athletics, with the option of a scholarship program based on need. Currently, the athletics fees are $100 for a high school student and $50 for a middle schooler.

 Witty said he was hesitant to increase the fees. Although districts in other parts of the state charge more, he said he didnt think it would be good to do to families in the area.

 We need to find the balance of being able to provide as many programs as we can, said Witty, speaking of the situation overall.

 Classified employees representative Gordon Beil recommended consolidation, and elective cuts if necessary. He was strongly opposed to cutting athletics.

 If you cut the athletics, a lot of kids could go to Prairie City and Dayville. Sports are their heart and soul. They build the community, he said.

 This is really tough, were talking about lots of lives and livelihoods. I dont see how we can do quick Band-Aid fixes without a consolidation, said Grant Union High School principal Curt Shelley. We will need to take whats best about Mt. Vernon and bring it to the new campuses.

 MVMS principal Monty Nash was one of the last to comment.

 This is not at all what I prefer. There is a lot of anxiety, he said, referring to his staff, concerned about the potential ramifications. Nash suggested the consolidation, if it must be done, be handled the sooner the better. I dont see how we can do anything else.

 However, he also sounded a positive note.

 Ive been here 14 years and the community is very resilient to change, Nash said.

 School board member Greg Jackle echoed that, saying consolidation is the way to go, unfortunately.

 A separate middle school environment is much better, but we have to look at the situation as a positive, and it can be positive, he said.

 Witty said in a later interview that if the board decides to go ahead with consolidation, the change at the campuses would take place this summer.

 This may not be easy. Theres going to be adjustments, he said.

 Witty said community members with questions are encouraged to call him at the district office, 541-575-1280.