As we are all very aware, from the national level down to the local, current economic conditions are definitely less than positive.  Because of the economic downturn state revenue is nearly a billion dollars short of what was projected for this year.  Since Missouri's constitution requires the state to maintain a balanced budget this means that cuts have to be made in the state's budget.  Most of the money received by school districts from the state comes in the form of the foundation formula.  Earlier this year  the Department of Elementary and Secondary Education (DESE) requested an additional $43 million from the state in order to fully fund the foundation formula.  That request was not included in the governor's supplemental budget proposed to the state legislature.  Without that additional funding, schools will not receive the full amount that they were expecting to get from the state this year.  The outlook for the next fiscal year doesn't get any better.  While Governor Nixon's proposed budget for FY 2011 does include an increase of $18 million for the foundation formula, it is still $88 million short of what would be needed to fully fund the formula.  In addition, some of the money schools receive from the state does not come from the foundation formula.  There will almost certainly be cuts in state funding for programs like transportation, Career Ladder for teachers, summer school, and the Parents as Teachers program.

Roughly 85% of our annual budget is spent on personnel.  So, while we can tighten our belts by being as conservative as possible in spending for things like books, supplies, and equipment, the only way to accomplish significant savings for a school district comes in the form of personnel.  At the present time we are not looking at any layoffs, but we do have to consider not filling positions left open through retirements or people leaving the district for other reasons.  Unfortunately budget cuts, in whatever form they take, impact our students through lessening of services provided and potentially larger class sizes.  We will work diligently to minimize any detrimental impact on students as much as possible.

One proactive step we are already taking to prepare for coming fiscal shortfalls is to save as much as possible in our current budget.  The less we spend in the current year, the more we will have to carry over into the coming lean years.  This is not a pleasant endeavor.  In a district that is highly focused on improvement and meeting the needs of our students, it is heart wrenching to have to say no to teacher requests for materials and equipment that would help them better serve their kids.

In addition to general belt tightening, we are already making plans to significantly scale back our summer school program.  Since funding for summer school is part of the budget for the current school year, money not spent on it will be left over to plug into next year's budget for the regular school year.

One positive factor that should help our district weather these fiscally difficult times exists.  A great deal of effort was made in each of our buildings this year to identify every student who was eligible for free or reduced lunches.  The percentage of a district's students who are eligible for this program is a key number used by DESE in calculating how much the district receives from the foundation formula.  Due to the diligent efforts of our staff this year, the number that will be used for next year's calculation will be nearly 10% higher than last year.  It is estimated that our increased percentage will result in an increase in our district's share of state money of approximately $100,000.  This increase will help offset other anticipated cuts in state money.

As bleak as the financial outlook may be, our community can take comfort in the fact that our school is full of very dedicated people.  Our teachers, support staff, administrators and school board will be working very hard to do more with less to ensure that our students continue to receive the best education we can offer them.

Until next time,

Dr. Dan Vandiver

Superintendent Houston R-I School District

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Phone:  417-967-3024 ext. 6

Fax:  417-967-4887