Shelbyville Daily Union

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October 25, 2013

Pana considers closing Middle School building

Pana School District is facing a decision about one of its buildings in light of a continuing deficit budget.

Superintendent Dr. David Lett presented to the school board Monday evening the possibility of closing Jefferson Middle School in Tower Hill as a cost saving measure at the end of this school year. A final decision on the matter will be made at the November meeting.

Jefferson currently houses fifth and sixth grade students.

“It’s been 10 years since the annexation of Tower Hill into the school district. It (the building) has served us,” Dr. Lett said.

The revenue began its decline in 2012 with proration of general state aid. The district has tried to hold expenses steady, but expenses have exceeded the revenue since fiscal year 2012 and the district has been running in deficit spending the past two years.

“We have more than $1 million is lost revenue since 2011,” Lett said. “It’s the frustrating part for all schools in the state.”

“If we had simply gotten what we were entitled to over the past three years, we would not be having to make this decision. It’s a revenue problem, not an expenditure problem,” Lee continued.

Lett noted that the Pana district population grew nearly 200 students with the Tower Hill annexation in 2003. With that came an increase in state aid revenue, which continued through the 2011 fiscal year. However, student population has declined steadily since 2005.

“We’ve also been losing students over the past nine years. Mobility is a big factor in the district. We’ve been losing students fairly steadily almost to the point of pre-annexation level,” Lett said.

In addition to the possible school closing, which is projected to save $800,000, the district is projecting a $450,000 savings by not replacing five certified staff throughout the district at the end of the year.

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