Information Norfork School District’s new superintendent Chip Layne learned his first day on the job ultimately led to a special board meeting Tuesday evening. The meeting was needed to take action regarding the school district’s money crunch, including approval of a bank loan to bridge the gap over the next two months to meet expenses.
Layne told KTLO, Classic Hits and The Boot news the board met Tuesday to approve a $50,000 line of credit from the Bank of Izard County. He says he has been advised this is the first time since the 2000-2001 school year the district has had to secure a loan until the bulk of property taxes are paid in October.
Layne assumed the helm of the school district July 1, following the retirement of Mike Seay, and immediately learned the carryover into the new year was not as large as had been anticipated.
He says this marks the third consecutive year the district has experienced a declining balance, putting it at jeopardy of being placed on the state’s fiscal distress list.
Declining balances led the district to successfully push for the passage of a millage increase in March. District residents overwhelmingly voted in favor of a three-mill increase in a special election.
However, Layne says the millage increase doesn’t become effective until 2020, meaning it will not be collected until 2021.
While district officials were gearing up to push for the millage increase, they were unaware efforts were underway that would lead to the legislature approving the governor’s push for an increase in the minimum salary for teachers.
Over the next four years, the minimum teacher salary will increase by $4,000, taking it to $36,000 by the 2022-2023 academic year.
How the district will ultimately meet the new mandate is unknown. Layne says it’s hoped additional state funding will be made available to meet the requirement.
But for now, Layne says the line of credit has been approved to ensure student needs are met and funds are available for payroll.
While the new superintendent does not have first-hand knowledge of being placed on the state’s fiscal distress list, he’s not waiting to hear from state education officials first.
Instead, he decided to be proactive, reaching out to state officials, who have scheduled a meeting with him Aug. 20. He’s hoping the state will recognize the district has been proactive in addressing its shortfalls, particularly with the passage of the millage increase.
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