Just like other schools across the state, Henryetta has been hit by state funding cuts but no teacher layoffs are in the future.
At a special meeting Tuesday night, Nancy McKay said Henryetta has lost $197,319 in state aid from the past year.
In the 2015-16 fiscal year, Henryetta received $4,666,159. This year to date, the state has paid $4,468,840. “For a school district this size, that’s a lot of money,” she said.
She pointed out since the 2012-13 fiscal year, Henryetta has lost $307,038 in state money. “I don’t know where else they can take money,” board member Brandi Brown commented.
“Every time they reduce state funds, we have to take it out of the fund balance,” McKay added. She expressed some pessimism in the legislature. “Our legislators are going to have to find new revenue streams for education.” She pointed out suggested fuel taxes and taxes on services are two ways to gain revenue. “We are the lowest state for taxing oil and gas producers. The tax is three percent. The norm in the United States is seven percent and some tax at 11 percent. If we went to the norm, we would not have these problems.
“We are holding our own,” said superintendent Dwayne Noble. The school started the current fiscal year with a fund balance of $972,216. Projections call for it to dwindle to $975,591 by the end of June.
“We can’t do this forever. The state has to step up some time. I have talked to other superintendents who are looking at RIFS (reduction in force). Our teachers are not affected by the cuts yet.
“None of this is any fault of management,” McKay added. “This is strictly a state issue.”
McKay said the district was hard-hit last year by the downturn in oil and gas production. For the three fiscal years prior to last year, the district received an average of $32,900 in gross production revenue. Last year that fell to $15,455. “This state should never depend on gross production to be a major revenue source. It’s too volatile.”
She said the school district has seen a slight gain in ad valorem tax revenue. Last year the district received $1,022,645. It is projected to fall at $1,048,150 by the end of June.
“The bottom line is, unless the bottom falls out of things, we should be okay,” she told board members.