Superintendent warns of tight funds, outlines plan to leave special-education coop in 2027

Superintendent John told the West Noble School Corporation board that the district remains "in the black" but is running tighter than he wants and must take steps to avoid ending the year with dangerously low cash in the education fund.

"The good news is we're in the black in every fund," John said in his superintendent's report, and noted a recent bond reimbursement that will add roughly $169,000 to the rainy-day fund. But he warned that the district is overspending the education fund: "Just two months in, we've spent 19% of that appropriation. Almost, almost 20%. That's at about 16%." He said staffing costs are the primary driver of the overrun.

Why it matters: John said the district's February count showed 2,100 students compared with 2,500 in 2013 — a loss of about 400 students and roughly 84% of the 2013 enrollment. With the district's revenues tied to student counts, that decline has reduced per-student revenue and left less flexibility to absorb rising costs.

John laid out specific stress points. The education fund began the year at roughly $2.1 million; if current spending continues the fund could end the year under $1 million, he said, placing it near 5% of cash balance when a healthy target would be around 15%–17%. "If we would transfer all that money [to operations], we would end the year under 0, underwater," he said, referring to a planned $1 million transfer the budget assumed.

Special-education bills were a central concern. John told the board the district paid a roughly $230,000 special-education bill in December and expects an estimated $320,000 bill in June, together about $550,000 charged to the coop. "This is why this is too much in my opinion for the service that we're getting," he said, and described work with neighboring superintendents to pursue either a restructured cooperative or to bring services in-house.

John said the district filed notice and is planning to leave the cooperative on 2027-06-30 unless the coop agrees to a major restructuring that reduces cost and improves service. He framed the move as a financial priority: "We saved $50,000 when we didn't coop for that service [school psychologists] and we have them every day," he said, arguing that some services can be delivered more efficiently in-house.

Board response and next steps: Board members asked for additional detail and asked John and the business manager to run models. John said he is not asking for a decision at the meeting but recommended pausing or reducing transfers from the education fund to the operations fund for much of the year. He also said he will meet with principals to work on staffing and expects retirements and resignations to factor into rightsizing the staff.

Other factors John cited included: changing local tax policies (he referenced a state action delaying a local income-tax change until 2029), national declines in birthrates and immigration, and some families choosing Amish or private schooling. He stressed plans to boost enrollment through programming and by emphasizing facility improvements funded through separate building projects.

What comes next: The superintendent said he will provide additional budget models and consult principals and the board. He asked board members to complete his performance evaluation this month, noting the process will affect his three-year contract renewal. No formal vote on budget transfers or coop withdrawal occurred at the meeting; the board approved routine consent and personnel agendas by voice vote.

Sources: Superintendent remarks and board discussion at the West Noble School Corporation board meeting (superintendent report and Q&A).