Rule change could restore some school funding

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Mt. Vernon Superintendent Jack Parker testifies to the House Ways and Means committee earlier this session about funding that is lost when students graduate early. Submitted photo

HANCOCK COUNTY — A rule change introduced by state Rep. Bob Cherry, R-Greenfield, is aiming to reverse a rule that school corporations say penalizes them for doing what they are supposed to do: help students graduate.

The change, included in the state budget, aims to correct a problem Cherry said he sees as an unintended consequence of the introduction, in the 2018-19 school year, of a second “count day” on which the number of students in a school corporation is determined. Because school funding is based on these headcounts, they are critically important.

Previously, the funding for schools was based on a single student count, in September. Now, it is divided by semester, and a second count is taken in February.

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Because of the semester divide, schools receive less money in the second half of the school year if they have high school seniors who graduate early by completing all their requirements in seven semesters. Cherry said he wanted to change the rule that he thinks penalizes schools for something that should be seen as positive. The change would change the formula for the February count so that early graduates are still included, even though they’re no longer enrolled.

Though Cherry introduced the change as a bill, it was rolled into the House version of the state budget bill, which will now be considered by the Senate.

Mt. Vernon schools Superintendent Jack Parker testified in a House committee hearing about the impact the legislation would have.

“I’m delighted to see that (bill) advance to that level,” Parker said.

In his testimony, he said the COVID-19 pandemic has led to an increased number of students studying at their own pace and graduating, with some Mt. Vernon students even graduating at the end of what would typically be their junior year.

In the 2019-20 school year, 41 Mt. Vernon seniors graduated early, leading to a loss of about $129,000 for the school corporation. That number represented about 13% of their graduating class. This year, Parker said, 39 seniors are expected to graduate early.

Parker said the loss of funding presents difficulties in planning the district’s budget. Though early graduation does mean fewer students in the second half of a year, he said, it doesn’t mean the corporation can change its staffing halfway through the school year.

During a time when Gov. Eric Holcomb and other members of Indiana state government have called for raises in teacher pay, Parker said the reduction in funding due to early graduation means Mt. Vernon doesn’t have as much money on the table to offer pay increases as it would otherwise.

“We deducted a proportional amount from our new money when we went to the bargaining table with teachers, thereby providing fewer dollars for raises,” Parker said. “The many superintendents I have asked all did the same when determining the amount of money available for raises in the fall.”

Ironically, Parker said, the corporation is losing money because of something both corporations and students should see as an accomplishment.

“We want our students to graduate early,” he said. “We’re very proud of them.”

Wes Anderson, director of school and community relations at Southern Hancock schools, said Southern Hancock typically graduates about 50-60 students early each school year. Many of them are scholarship athletes who are graduating early so they can begin training for their college sports careers, he said.

That means the corporation is losing out on up to $180,000, enough to pay two teachers’ salaries, “because those kids did what they’re supposed to do, which is graduate,” Anderson said.

With the smallest student population of the county’s four school districts, Eastern Hancock typically has only three to five early graduates in a typical year, Superintendent Dave Pfaff said. Still, the loss of money affects the corporation’s budgeting process.

Pfaff praised Cherry for being responsive to the needs of school corporations by introducing the legislation.

“It’s correcting a problem that schools saw and made Rep. Cherry aware of, and we appreciate him taking the lead on that,” he said.