School districts avoiding economic ills

 
LOADING
Oct 16, 2008 - 04:06:08 CDT
North Dakota school districts apparently are feeling few effects of the country's financial turmoil.

School districts in other parts of the country are cutting staff, programs and building projects to bridge budget shortfalls. Locally, it's business as usual.

"You're actually in good shape in North Dakota," said Mike Griffith, senior policy analyst with the Education Commission of the States.

The housing market, paired with the state's primary industries, could help it buffer the economic downturn or delay its effects, Griffith said.

North Dakota did not have a unsustainable housing boom like those experienced in other parts of the country. Consequently, property values in North Dakota are not overinflated, Griffith said.

This is good news for school districts that rely on property value to generate part of its revenue. A majority of revenue for North Dakota schools is local property tax collection.

"When we look in general, it is not a huge impact at this point in time," Mandan Superintendent Wilfred Volesky said.

The district is not cutting positions or programs and it recently accepted bids on a $2.1 million addition to Mandan Middle School. The bids came in $250,000 to $300,000 less than it anticipated.

"Was that part of the economy?" Volesky asked. He's not sure if it was. The district received many bids for the work.

The economy did affect the district's decision to take out a school construction loan from the state instead of funding it entirely with general obligation bonds. The rate on the bonds increased, making the state loan more appealing, Volesky said.

The Bismarck School District will continue to move forward on two building projects: an elementary school and a career and technical education center. If building in the private sector slowed, it could put the district in good position to get reasonable construction bids.

"Consequently, contractors need business," Superintendent Paul Johnson said. "I'm not an expert enough to say it will mean lower construction costs, but we could see bids come in lower because they need work."

State aid recently increased to some school districts based on a new state school funding formula. Coupled with local property tax values that showed an increase for the last year, districts are bringing in more revenue compared to previous years to cover increased costs.

If later the districts need to cut their budgets, the goal would be to hold harmless what happens in the classroom. Other services that are provided beyond what the state requires could be reduced or a fee imposed.

Mandan, for example, could charge a fee or eliminate in-town busing because it would be beyond the minimum state requirement for busing. It is not considering either option at this time.

If property values fall, it would take more time for it to affect the school districts than if state revenue decreased, Johnson said.

(Reach reporter Sara Kincaid at 250-8251 or sara.kincaid@;bismarcktribune.com.)

   Printer friendly version
School districts avoiding economic ills
Comments

To kk wrote on Oct 16, 2008 7:47 PM:

" I bet Norm is part of that good ol boys club. "

kk wrote on Oct 16, 2008 6:05 PM:

" to Norm~ I am hardly ignorant~simply stating the facts. Please do not patronize me with how "thrifty"school districts are and how"underfunded" they are. They just do not know how to balance their budget and every time I turn around they are asking for more money~ and not for the students so spare me your rhetoric. "

Think before you speak. wrote on Oct 16, 2008 1:08 PM:

" Rather than making teachers help pay for their insurance perhaps there should be some trimming at the top of the tree on executive salaries in the district and the department heads....People you dont realize that people dont take teaching jobs and government jobs for their fabulous pay, they take it because the paid benefits help to make up the short comings of their salaries. Sure take the health care away, you are just going to have to pay alot more to get the positions filled. "

Grumpy Old Republican wrote on Oct 16, 2008 12:31 PM:

" BabyT, don't be so pessimistic. Get the word out on measures 1 and 2 and what they will do to the future of property taxes and state disbursements. EDUCATE people so they don't go to the voting booth blind. Don't assume they'll pass...it's not too late to educate people on these measures. "

Know your facts wrote on Oct 16, 2008 12:02 PM:

" Hey Constitution: It would probably help if you checked your facts. I pay 300 dollars out of my own pocket for my health insurance each month, so please don't make those kinds of statements unless you have some facts. "

constitution wrote on Oct 16, 2008 10:31 AM:

" The constitution calls for the government to provide an education, not a FREE education. If you are going to live in a lower population area, perhaps you should pay a fee for your children to go to school. I live in a large city and would not have a problem contributing to my kids' schools if the district spent money more wisely. Paul Johnson stated that he was going to build the technology center whether the voters wanted it or not and our dandy school board went along with it. Time to trim the budget - maybe teachers should start paying for part of their health insurance like everyone else. "

Norm wrote on Oct 16, 2008 10:24 AM:

" To kk: Education is not half as expensive as ignorance. I challenge you to point out where individual school districts have been irresponsible in their fiduciary responsibilities. The state of ND has long underfunded its schools and is only recently (thanks to the litigant school districts and the leadership of the Gov. and Lt. Gov) trying to catch up. If the state would fund education at 70% and the feds would live up to their promise of fully funding special education, property taxes could drop dramatically. I sure hope that Measures 1 and 2 fail. Property taxes will soar and education will suffer in the state if either of these measures pass. "

TW wrote on Oct 16, 2008 9:27 AM:

" School funding was drastically increased to the schools who were personally represented on the Governors task force on education, these 7 or 8 schools receive approximately 3/4 of the state money given to schools. This was obviously done at the expense of the smaller schools in the state. I would hope with the input of millions of extra dollars 1 1/2 years ago these schools would still be in good financial condition. It should take longer than 2 school years to pi$$ away that amount of money. I do like the idea of local districts being responsible for anything other than core curriculum. I don't think the smaller districts should have to support the new steel drum band in Bismarck or the swimming pools in Fargo. "

BabyT wrote on Oct 16, 2008 7:34 AM:

" Wait until both measures 1 and 2 pass. The state government will all but stop giving any funding to schools, and expect any school district with less then 400 students or so to be on the chopping block. Property taxes? The current level will be a long and gone distance memory after the school districts have to raise taxes to make up for the lack of state money. "

kk wrote on Oct 16, 2008 6:42 AM:

" and do not use this as an excuse to start asking for more money from the taxpayers~ we cannot do it. You too will be affected by this so do not get too smug BUT do not think about asking for more money. We as citizens are tired of paying out and getting nothing. "

Post Your Own Comment
(optional)
   
All online comments are limited to 350 words total.
Comments are reviewed for taste, tone and language before posting.
Some comments may be used in the Tribune's print edition.
We value and respect your privacy, but The Bismarck Tribune might
disclose certain information to governmental entities if served with subpoena.

Copyright © 2009 Bismarck Tribune, a division of Lee Enterprises.  -PRIVACY POLICY