VIGO COUNTY, Ind – The Vigo County School board voted on two important financial plans.

The board voted unanimously to approve a three phase cost cutting plan submitted by Superintendent Rob Haworth.

Phase one is projected to save a little more than $4.6 million and will include a reduction of six administrators. Superintendent Rob Haworth will see his pay cut by $20,000.

A committee of teachers, administrators, staff and citizens will be formed to look at which three elementary schools will eventually be closed but no buildings will be closed until after the next academic year according to Communications Director Bill Riley.

The School Corporation CFO Bruce Perry is no longer with the system, but Riley had no comment on when or if that position would be filled.

The school board also approved a change in the collective bargaining agreement with teachers.  The board approved the teacher raises because the district discovered it had $4 million more its rainy-day fund than it had originally thought. The board worked out a deal with the teacher’s union to use 1.1 million of that for giving teachers a retroactive pay raise. That retroactive pay raise has been a part of every new contract agreement in recent memory.

After it was announced that there was extra money that had been found, it was announced that former CFO Bruce Perry was no longer with the system. It was not made clear if he resigned or was fired.

When asked if there was a search on for a new CFO, we were told that there was no comment.

As for the recent $3 million that was recently discovered officials say that they are confident that the current financial information is correct and don’t see the need for an outside audit to take a look at the corporation’s finances.

 

 

Below is a summary of the actions taken and provided by the Vigo County School Corporation:

 

 

Board Meeting Highlights for Monday, January 27

TERRE HAUTE, IN—Two major actions happened at the Vigo County School Board meeting on Monday, January 6.

1. The school board approved the proposed budget cuts. These cuts are in response to VCSC’s deficit spending, which totaled $7.2 million in 2019. They are similar to the cuts proposed in October. One change includes removing a 4.75% pay reduction for central administrative staff, instead adding the reduction of two further administrators—6 total. The VCSC can realize deeper, long-term savings by reducing the overall number of administrators, and those responsibilities will be absorbed by current staff. A reduction of $20,000 in the superintendent compensation package is still a feature of the plan. We also anticipate the cost savings of a one-year pause in bus replacement at $1.7 million, rather than a previous estimate of $1.5 million.

Phase 1: $4.165 million

Phase 2: $1.69 million (covers the cost of re-starting bus replacement plan)

Phase 3: $1.555 million

Key spending cuts include: REDUCTION OF ADMINISTRATIVE COSTS

· $20,000 cut for superintendent compensation

· Reduction of administrative positions through retirement/resignation

ELEMENTARY SCHOOL CONSOLIDATION

· Phase 1 of the plan calls for a task force comprised of teachers, administrators, staff, and citizens.

· In phase 2, the task force will identify a consolidation plan to reduce the number of elementary schools from 18 to 16.

· In phase 3, the task force will identify a consolidation plan to reduce the number of elementary schools from 16 to 15.

ALTERNATIVE EDUCATION REDESIGN

· Booker T. Washington High School and Vigo Virtual Success Academy hosts future alternative education programs

· McLean Education Center staff will not lose their jobs—they will fill open positions, including new positions at Booker T. Washington, and in special education classrooms at traditional high schools

· McLean repurposed for IT, vacated space potentially used for office space, for-profit daycare, other uses as identified by board

BUS REPLACEMENT

· One-year pause in bus replacement, saving $1,700,000.

FOCUS ON RETIREMENT/RESIGNATION

· Goal is to consolidate positions based on retirements and resignations, rather than layoffs. Every position will be scrutinized upon retirement/resignation.

2. The school board approved a revised teacher contract for 2019-20 that now includes retroactive pay, a feature of all teacher contracts in recent memory. The package for retroactive pay is estimated at $1.1 million and is in response to the 2019 cash balance coming in at higher than the $13.5 million that the VCSC needs to protect moving forward. We must continue to retain and attract top-quality teachers to the VCSC.