By Carol Anders Correspondent
LAKEVILLE — Reductions in the budget for the Union-North School Corporation need to be in place by Jan. 1, 2010, according to school Superintendent Terry Barker.
At a school board meeting held last week, Barker informed the board members that advertising for the 2010 tax anticipation warrants totaling $988,000 will be used to make the payroll in January.

The board authorized tax anticipation refunding warrants in the amount of $1.45 million for 2009. In order to pay the $1.45 warrants, the corporation intends to use the existing funds for internal borrowing to make payments from existing revenue. Additionally, they plan to use revenues to be received in December from Marshall County.
Barker referred to the budget problems as a “perfect storm,” he said. “I am confident that we will be able to weather this storm, but it will take being able to make some hard decisions that will hopefully have a limited long-term negative impact on programs and staffing.”
Former Superintendent Larry Phillips had advised the board on numerous occasions that the failure of Saint Joseph County to make payments on time could lead to a shortfall. At this time, the Saint Joseph tax revenues for 2008, payable in 2009, have not been received by the school. Barker said he feels fairly confident that the 2008 tax revenues will be received by the Union-North Corporation by Jan. 10, 2010.
Stimulus funds anticipated from the American Recovery and Reinvest-ment Act (ARRA) were used by the state for regular school funding disbursements. Corporation vehicle excise tax and financial institution taxes were also held at the state level.
On Friday, Barker said they are making no budget cuts yet.
Barker said, “I will be putting together a committee. We will be discussing multiple options to balance the budget. In the General Fund, the biggest item is staff. I am not seeking to start a panic — just making people aware.”
He added, “I believe we are doing what is allowable under Indiana statute.”
School patron George Moffett claims borrowing by the school board in connection with the schools proposed $19.6 million building project have caused some of the budget problems.
Moffett said, “When this school board borrowed $2.4 million to keep a project afloat, I don’t have much sympathy.”
A lawsuit filed by Moffett against the DLGF (Depart-ment of Local Government Financing) is still pending. Moffet contends that the DLGF was given false information as to the school’s financial picture at a hearing on the building project that led to allow the project to move forward.
The project is at a stand-still until a ruling by Judge Thomas Fisher is handed down on the matter. Judge Fisher took oral arguments at a hearing in South Bend several weeks ago.
Moffett said, “I commend Dr. Barker for attempting to put the school back on financial footing. The board and previous administration have put them in a bad position. If they can show me that I’m wrong, I’ll back off and apologize.”
A report on the recommendations for budget reduction could be discussed at the next school board meeting Dec. 8.