STREAMING NOW: Watch Now

Vigo County School Corporation has more money in the bank than thought

At 6:20 AM Thursday morning, Bill Riley, Director of Communications for the Vigo County School Corporation sent a statement to media outlets.

Posted: Jan 23, 2020 6:38 AM
Updated: Jan 23, 2020 12:29 PM

TERRE HAUTE, Ind (WTHI) - We're following breaking news from the Vigo County School Corporation.

We're working to confirm some information we received Wednesday night. It involves how much money the corporation has in the bank. And how much money it said it had when the superintendent was campaigning for a referendum.

LINK | VIGO COUNTY SCHOOL BOARD PASSES REFERENDUM FOR SCHOOL

There were two anonymous letters sent to us Wednesday night, one came from a source with ties to the corporation. it reads as a statement from Superintendent Rob Haworth.

It also reports that the corporation ended last year with a higher cash balance than first reported.

LINK | BRUCE PERRY OUT AS CHIEF FINANCIAL OFFICER FOR THE VIGO COUNTY SCHOOL CORPORATION

You were told about $13 million last December, now the corporation is reporting a cash balance of $16 million and it has now reached a new agreement with the teachers association.

The second anonymous letter appears to be written by representatives from the teachers association.

We've not been able to confirm this, as our calls and messages to teachers association leaders have not been returned. we will continue to reach out to our sources.

LINK | THE SCHOOL REFERENDUM QUESTION: WHAT WOULD IT COST YOU, AND WHAT WOULD THE BENEFIT BE TO VIGO COUNTY KIDS?

Haworth crunched some of these numbers for us. He wanted to explain the error in a way that is as transparent as possible.

Haworth also wants the public to know teachers will now receive pay-raises retroactively to the beginning of the school year.

That's something the teachers association wanted to begin with.

"If we would have known this cash balance over this cash balance...we would not have questioned retroactive pay. I think everybody knows we want to see compensation as a part of our referendum. So, when we saw the opportunity to do the right thing...our board supported it and it is going to allow us to do the right thing," Haworth told us.

The board should approve this additional pay raise at Monday night's meeting. After that, Haworth said the administration will figure out how to get these raises paid to teachers.

The board should also address Haworth's spending cut and revenue enhancement plan on Monday as well.

On Thursday morning, Bill Riley, Director of Communications for the Vigo County School Corporation released the following statement: 

DR. HAWORTH STATEMENT ON TEACHER COMPENSATION, CASH BALANCE

"Vigo County School Corporation teachers and staff are committed, passionate professionals. But our teachers, like their colleagues across the state of Indiana, often have to take on second jobs to make ends meet. Teacher pay is tied to funding from the state sales tax, and teachers across Indiana are not paid what they are truly worth. We have a teacher shortage across our state and here at home, and pay is certainly part of the problem. We must continue to find ways to improve teacher pay.

As 2019 came to an end, and as we were negotiating a contract, I was concerned that by providing retroactive pay, the cash balance would fall below $13.5 million. As we closed out the 2019 calendar year, it became evident that we could, in fact, provide retroactive pay to our teachers. In reaching out to Vigo County Teachers Association leadership, we sought to reintroduce retroactive pay. Last evening, we reached a tentative agreement that must be approved by the school board to do that, as well as improve the minimum salary of teachers with at least one year of experience.

As we close out the 2019 fiscal year, our cash balance ended at $13,031,773. If you include the Rainy Day fund, that total rises to $14,610,247.

Over the last 10 years there have been continual changes in the state statutes regulating education in order to protect the amount of property taxes assigned to the Debt Service Fund. In 2019 the VCSC qualified for the protected tax waiver in the Debt Service Fund. In essence, this would allow the school corporation to transfer these funds from the Debt Service Fund to the Operating or Education Fund. Due to the December 2019 collections, the protected tax funds arrived at $1,629,300. Originally, we projected this income to be $1.2 million. Adding the protected tax waiver funds to our cash balance makes it $16,239,547.

Tonight’s agreement with the VCTA is an estimated package of $1.1 million dollars. When combined with outstanding bills of $710,687 from the 2019 calendar year, our adjusted estimated cash balance is $14,428,861.

The Vigo County School Corporation is committed to maintaining a cash balance of 13.5 million dollars, which will protect our bond rating. A favorable bond rating is key to bringing important advancements to our schools. This week, when we discovered our adjusted estimated cash balance would be above $13.5 million, we sought to improve teacher contracts for 2019-20 because it’s quite simply the right thing to do.

Throughout our community conversations regarding the referendum, we reminded the community that we would need at least $8 million of spending cuts if the referendum did not pass. In 2019, we spent more than $7.2 million than we brought in from federal, state, and local resources, however when adjusted to include retroactive pay and 2019 outstanding bills, it exceeded the $8 million mark we spoke of in our community meetings. We are thankful for the passage of the 2019 referendum, however, as these numbers indicate, the referendum dollars must work in tandem with reduced spending to create a balanced budget.

Reducing our spending is a long-term strategy, and we must face the reality of declining enrollment. Spending cuts proposed in October 2019 will right-size our budget for our enrollment. In the meantime, we must continue to retain and attract the quality teachers we have come to expect in Vigo County, and it is my hope that revisiting 2019-20 compensation in light of a better-than-projected cash balance will help meet that important goal.

Decreasing enrollment continues to be the major issue for the district. Vigo County School Corporation enrollment fell by more than 200 students in 2019-20 and the total number of school-aged children living in Vigo County fell by more than 300 students. Vigo Virtual Success Academy has been successful at slowing our enrollment decline. However, unless we see a change in the state funding formula, our projected increase in “new” money for 2021 will once again be less than 2%."

Terre Haute
Cloudy
72° wxIcon
Hi: 69° Lo: 53°
Feels Like: 72°
Robinson
Mostly Cloudy
74° wxIcon
Hi: 74° Lo: 54°
Feels Like: 74°
Indianapolis
Cloudy
60° wxIcon
Hi: 60° Lo: 52°
Feels Like: 60°
Rockville
Cloudy
66° wxIcon
Hi: 64° Lo: 52°
Feels Like: 66°
Casey
Cloudy
71° wxIcon
Hi: 73° Lo: 53°
Feels Like: 71°
Brazil
Cloudy
72° wxIcon
Hi: 67° Lo: 52°
Feels Like: 72°
Marshall
Cloudy
72° wxIcon
Hi: 70° Lo: 53°
Feels Like: 72°
Morning storms, then warm
WTHI Planner
WTHI Temps
WTHI Radar

Latest Video

Image

Sunday: Morning rain, then warm and breezy. High 73°

Image

haunted halls YMCA

Image

Stephanie's Kitchen

Image

Saturday Night: Cloudy, rain showers developing. Low: 50°

Image

ISU Football Victorious on Homecoming

Image

ISU Homecoming Parade

Image

Loogootee Volleyball Falls in the Regional Semi-Finals to Trinity Lutheran

Image

Dedication of Stephanie's Kitchen

Image

Residents cleanup the City of Clinton

Image

Linton Volleyball Advances to Regional Finals, but Comes Up Just Short

WTHI Events

 

Illinois Coronavirus Cases

(Widget updates once daily at 7 p.m. CT)

Cases: 1680908

Reported Deaths: 28023
CountyCasesDeaths
Cook63626111214
DuPage1086211379
Will915681128
Lake802871090
Kane68604874
Winnebago41222561
Madison40178598
St. Clair36326599
McHenry34856331
Champaign27087197
Peoria26991368
Sangamon25818287
McLean23073220
Tazewell20689331
Rock Island18919362
Kankakee17959249
Kendall16268114
Macon15344252
LaSalle15078287
Vermilion14453201
Adams13188152
DeKalb12201134
Williamson12091175
Whiteside8328183
Jackson810494
Boone796583
Coles7918125
Ogle759290
Grundy741386
Franklin7339115
Knox7321169
Clinton7136102
Macoupin6988106
Marion6935144
Henry666177
Effingham6639100
Jefferson6573143
Livingston599498
Stephenson587893
Woodford578492
Randolph5563100
Christian536682
Fulton527977
Monroe5258103
Morgan5088100
Logan495675
Montgomery492882
Lee479760
Bureau444291
Saline436169
Perry433975
Fayette432464
Iroquois422577
McDonough374861
Shelby349848
Jersey336953
Lawrence335533
Crawford333730
Douglas328437
Union307748
Wayne304863
White280833
Richland280157
Hancock274435
Clark266940
Cass266531
Pike265658
Edgar260649
Clay259854
Bond257525
Ford246059
Warren244866
Carroll237138
Moultrie236333
Johnson229732
Wabash217319
Jo Daviess216629
Massac216551
Mason214452
Washington212928
De Witt206530
Greene205640
Mercer205036
Piatt202814
Cumberland190126
Menard172513
Jasper161621
Marshall141721
Hamilton134222
Schuyler108810
Brown106610
Pulaski104612
Edwards104118
Stark81828
Gallatin7939
Alexander73212
Scott7126
Henderson70914
Calhoun6932
Hardin60916
Putnam5674
Pope5566
Unassigned1342433
Out of IL140

Indiana Coronavirus Cases

(Widget updates once daily at 8 p.m. ET)

Cases: 1007681

Reported Deaths: 16470
CountyCasesDeaths
Marion1355212121
Lake664101166
Allen57993801
Hamilton46350465
St. Joseph44397615
Elkhart35949510
Vanderburgh32251480
Tippecanoe27933260
Johnson25107445
Hendricks23897359
Porter22929365
Madison18748409
Clark18557252
Vigo17479303
Monroe15263200
LaPorte15173250
Delaware15073263
Howard14748290
Kosciusko12348148
Hancock11728176
Bartholomew11639180
Warrick11292189
Floyd11108215
Wayne10986253
Grant10082220
Morgan9472176
Boone8926115
Dubois8271131
Henry8229152
Dearborn822393
Noble8031106
Marshall7939135
Cass7546121
Lawrence7457171
Shelby7189119
Jackson698289
Gibson6597115
Harrison649192
Knox6421106
Huntington6395100
DeKalb632399
Montgomery6264111
Miami593398
Putnam581278
Clinton576171
Whitley565755
Steuben562576
Wabash5332104
Jasper532079
Jefferson511297
Ripley500586
Adams482576
Daviess4677114
Scott438974
Greene425196
Wells424888
Clay423360
White418764
Decatur4169102
Fayette406587
Jennings387361
Posey376644
Washington359151
LaGrange359078
Randolph3452100
Spencer340243
Fountain335760
Sullivan329452
Starke317171
Owen314771
Fulton312667
Orange293664
Jay284645
Franklin265643
Perry265452
Rush262432
Carroll261934
Vermillion258654
Parke231426
Pike229243
Tipton228159
Blackford193142
Pulaski183757
Crawford159823
Newton158348
Benton150617
Brown146747
Martin138719
Switzerland135011
Warren121116
Union107016
Ohio84613
Unassigned0540