Noblesville Schools is currently in a $3 million spending deficit, due to declining revenue from the State of Indiana, as the state adjusts its budget in the recession. Therefore, Noblesville Schools must cut costs for the 2010-11 school year ($3.9 million) as we did for the 2009-2010 school year ($2.1 million). We will have spent all of our cash savings by the end of calendar year 2010, and are currently looking at ending the year in a deficit, which is unlawful for school corporations in Indiana. We anticipate more cuts in revenue by the state for 2011, and we have to be able to absorb that until the relief from the $5 million referendum becomes available in June and December 2011.

Therefore, Noblesville Schools' Budget Review Committee recommended $3.9 million in cost reductions for the 2010-11 school year, based on the state's citizens' checklist. Of that amount, $2.2 million has to be negotiated with the teachers' union because it involves salaries and benefits. The original proposal to the Noblesville Teachers Forum by the administration, which the forum rejected, would defray $1.9 million dollars, and would allow the return of 20 teachers plus 10 teachers that we would bring back from other savings:

• Changes in insurance	$600,000
• Reduction in VEBA and retirement match	$$340,000
• No incremental raise (salary freeze)	$525,000
* This freeze enables the one-time transfer
of $330,000 from other funds into general fund	$330,000
• Sick Bank changes	$125,000
• 10 release days/year for Forum President	-$750

The final proposal to the Forum, which they also rejected, would save $1.6 million and ensure the return of 16 teachers, but we guaranteed the return of 28 teachers due to savings from other employee groups and cost reductions:

• Changes in insurance	$600,000
• Reduction in VEBA and retirement match	$340,000
• 2% incremental raise	$269,000
* This raise enables the one-time transfer
of $330,000 from other funds into general fund	$330,000
• Sick Bank changes	$125,000
• 10 release days/year for Forum President	-$750

The Forum's final offer saves $960,000:

• Changes in insurance	$600,000
• Reduction in VEBA and retirement match	$340,000
• 2.3-9.8% incremental raises minus $500	$225,693
* This raise does not enables the one-time transfer
of $330,000 from other funds into general fund	-$330,000
• Sick Bank changes	$125,000
• 24 release days/year for Forum President	- $1800

The Forum's proposal does not save us enough money for 2010-11. Teachers would still be receiving a raise when no other employee groups are getting a raise. We could only call back 10 teachers in the savings from the negotiations, and therefore a total of 18 teachers could be called back. The insurance and VEBA/match are the same that all other employees will experience. We are not asking any more of teachers than we are of any other employee, and in fact, in our final offer they would still receive an incremental raise of 1.2-2%, and no other employee will receive any raise.

As an additional point, the Forum did agree to a 2% or less increment (to allow the statutory $330,000 transfer of money into general fund) if the district paid them back for the difference between the $500 they are willing to give up after a full incremental raise and the additional amount they would need to forgo to get increment down to 2%. That payback is not allowable within the statutory guidelines of the transfer statute. The district is not willing to circumvent the law.


Related information:
• The current teacher salary schedule
• The forum's "Community Communiqué"
• The school board's response