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The dollar crunch: schools prepare to bite the bullet

There may be about 30 fewer teachers in Journal area public schools next year, a survey of area school officials indicates.

Some of the loss will be accounted for by retirements and resignations, and much of it simply by not renewing contracts next year, mostly for non-tenured first-year teachers.

Responses by officials indicate that many of the cuts in teaching staff-primarily those in the elementary grades-are due to declining enrollments.

OTHERS, HOWEVER, are due to budget deficit problems. That is, many schools’ disbursements are exceeding revenue and the schools are handcuffed by state levy limitations in their abilities to raise the necessary additional money.

Statewide, the number of schools that will be staring at total accrued deficits by June 30 will number about 75,according to Bill Wettergren, executive secretary of the Minnesota School Boards Association.

In explaining how the situation evolved, Wettergren blames past legislative decision.

“In 1971 it seemed to be the philosophy of both political parties that local elected officials didn’t have the capabilities to handle their own financial situations,” he said. “So they put on levy limitations and put the screws harder into the school districts than the municipalities.”

While receiving tax money back from the state on a per-pupil-unit basis, the student enrollments at most schools are declining.

With the decline goes a corresponding drop in state money-at the same time the inflation rate increases and the districts are taxing at the maximum level set by the state.

“THE PROBLEM is going to get greater in the next year or two because of levy limitations,” said Glencoe Supt. Verdie Ellingson. An increase in the levy limitation “seems to be essential,” he added. “Otherwise, we’ll be hurting.”

Glencoe, with its close proximity to the Twin Cities, however, is well off compared with most schools in rural areas.

“It appears the greatest growth is just outside the so-called suburban areas,” Ellingson said. “We’re finding we have quite a few people in Glencoe working in the western suburbs of the Twin Cities.”

“We’ve had a net decrease of 10 students in the past five years whereas Fairmont has had about a 250-student decrease.”

Glencoe will end this year with a slight deficit on this year’s budget and no staff reductions will be made.

IN CONTRAST, Wabasso School will be in the red by about $140,000 this June, Supt. Melvin Salmela said. That places the Redwood County school in a class with the much-publicized Nicollet School deficit situation.

About $80,000 has been cut from next year’s Wabasso budget, including salaries for three teachers-one by retirement and two by shifts to federal programs.

Despite the cuts, next year’s deficit may hit $160,000, the superintendent forecasted bringing the total to $300,000.

At Nicollet, four teachers have been cut, the deficit may top $250,000 by June 30,and the district’s voters will decide May 18whether to pay an additional eight mills of property tax to help bail out the school.

Taxation beyond state-imposed limits is only allowable with passage of a referendum.

WETTERGREN ATTRIBUTED the growth of financial problems to three factors:

-The “mandates” of collective bargaining by teachers.

-Inflation.

–“The number of school boards and administrators who just didn’t bite the bullet quickly enough. They didn’t see the declining enrollments coming and the cuts that would be needed.”

New Ulm Daily Journal

April 6, 1975

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