School board lowers its estimated debt
By D.A. WILKINSON
VINDICATOR SALEM BUREAU
SALEM -- The Salem Board of Education has lowered its estimated debt while the district undergoes two state reviews.
The district had estimated that it would have a $1.3 million deficit by the end of the 2005-06 school year. Fifty-four percent of the district voters rejected in November a 4.3-mill five-year levy that would have covered the deficit.
The board has placed the same issue on the May primary. But it also has eliminated busing for most students and made other cuts.
Superintendent Stephen Larcomb said Friday the estimated debt at the end of the current school year will be about $700,000.
Larcomb said the lower estimate was partly because of revenue transfers made by district Treasurer Alice Gunning. She could not be reached Friday.
Plan rejected
The state placed the district under financial caution in 2005 because of the projected red ink. But Larcomb said the state rejected the district's recovery plan because it did not completely balance.
As a result, a representative from the state auditor's office will review the district's finances to determine if it will remain under a caution or be placed in a more serious category.
The district also is going to be examined by a Blue Ribbon Panel from the state auditor's office. That review will include district staffing levels.
Larcomb said the two reviews should dovetail.
The board is in negotiations with the teachers and nonteaching workers. Nonteaching personnel have rejected the proposed contract. Talks are now in mediation, Larcomb said.
Talks with the Salem Education Association should be wrapped up by May, he added.
The superintendent doesn't think either state examination will be done by May.
He has scheduled meetings at 7 p.m. March 6, 22 and 30 and April 27 at the high school cafeteria to explain the district's finances.
wilkinson@vindy.com