The School City of Hammond is bracing for more financial struggles, as it puts together its 2024 budget. Cash reserves have dropped from $13 million in early 2022 to just over $3 million this summer, with the operations fund taking the biggest hit.
Chief Financial Officer Eric Kurtz told the school board Tuesday that, when it comes to facilities, the district is essentially making only emergency repairs. "We do not have a robust fund to deal with a roof that gets blown off in a storm and those kind of things," Kurtz added.
The proposed capital projects plan contains 185 pages of facilities needs. A building referendum would raise funds to upgrade Morton High School, playgrounds at four elementary schools, and baseball and softball fields at Hammond Central High School.
Similarly, the bus replacement plan calls for the purchase of nine buses in 2024. But Kurtz said the money isn't there to actually buy them, unless the school corporation can get outside grants.
Board member Cindy Murphy called on Kurtz to find a solution. "We have to deal with this," Murphy said. "So along with the budget, we need a plan. When are we going to take care of this? We just can't have this stuff. They drive it out of the lot and then the rear end falls off because it's rusted out."
Meanwhile, the increase in state funding per student is more than offset by the drop in Hammond's enrollment. The preliminary fall count is 10,759 -- a drop of 151 students from February, which translates to $1.2 million less in tuition support.
On top of that, Superintendent Scott Miller said the amount of extra help for schools in poorer communities has decreased over the past decade, with the state directing more funds to wealthier communities. "We used to be able to pay a competitive advantage to recruit staff into Hammond and to urban areas, but because of changing that formula, now you're seeing the result of the most wealthy districts paying the most for their teachers.
And there are more challenges ahead. Federal ESSER money goes away in a year, and the district's operating referendum goes away in 2025, unless voters renew it in November.
"If we don't pass the referendum . . . it will affect the district top to bottom," Miller said. "Top to bottom. Every employee group."
Others argued that cuts should focus on higher-paid administrative positions, rather than teachers.
The proposed 2024 budget totals $157.2 million, including an education fund of $85 million, operations fund of $30 million and operating referendum fund of $16.5 million. However, Kurtz expects some cuts to be made. It'll be up for the school board's approval on October 17.
