School district gets $2.1 million

LAFAYETTE, Ind. (WLFI) - An area school district approved its budget and received notice that it was getting over $2 million from the state.

The Tippecanoe School Corporation (TSC) board of trustees approved the budget for 2011 and discussed the possibilities the district has with the stimulus money during a board meeting Wednesday evening.

The TSC was notified last week it would be receiving over $2.1 million in stimulus money, however the district can't use the money until November. The district plans to hold onto the money. State Superintendent Tony Bennett is advising corporations to keep the cash until the 2011-2012 school year.

"There are enough uncertainties that we are faced with in the next 12 months that it is a wise idea to hold off until the 2011 school year. That way if there further reductions, it will help give us a little bit of a cush," explained TSC chief financial officer Kim Fox.

School districts can't use the stimulus cash for administration.

"Our focus is going to be to preserve jobs and to be in the position where we may weather a future cut, should that come from the state," explained TSC superintendent Scott Hanback.

How the stimulus money works is the district spends the money and then the state will reimburse the amount.

The stimulus money isn't included in the TSC's 2011 budget, which was advertised at $118 million and the tax rate at $1.19, but Fox said she expects the budget to be between $108 million to $109 million and the tax rate to go down towards $1.05. She said she calculated the budget on the assumption there wouldn't be any more cuts coming down from the state.

"It was a challenge trying to do the 2011 budget because there are so many unanswered questions that will have a huge impact on our 2011 budget, such as 'Will the state reduce funding again in January like they did this past January?'" Fox said.