By Carol Anders Staff Writer
LAKEVILLE — Union-North United School Corporation Superintendent Larry Phillips spent much of the school board meeting last night explaining how the new state rulings concerning budgets might affect the system.
The board held a public hearing on the bus replacement fund, capital projects fund and the 2009 budget.
Phillips said he is recommending the purchase of two additional buses: “The bus replacement fund is only for the cost of operating buses; not salaries, other equipment, or other personnel.”

The buses that he is suggesting would be 66-passenger at approximately $85,000 per bus.
Phillips said, “We are not taking any of the buses (existing) off line.”
According to Phillips, there are no state dollars for buses and all of the cost comes from local taxes.
Although the board was considering bus replacements at the meeting, Phillips said it would be well over a year before there would be any purchases.
Currently, the corporation owns six 66-passenger buses, four-mid-size buses and one 48-passenger bus.
The corporation will be biding out bus routes in the near future. Phillips said, “There could be 16 or 19 routes bid out between now and March 15 (2009). We don’t know how many bus drivers are going to bid and we have a number of people who could retire.”
Phillips said they also need buses for field trips and sports.
The oldest bus in the fleet now is a 2000 model that is up for replacement next year.
Several patrons in the audience expressed their concern over purchasing new buses. Gary Hall asked, “You want to spend $200,000 in case you might need them?”
The board is asking for $1,293,935 in the Capital Projects Fund. Phillips explained that the state takes an annual pension bond payment of $173,575 off of the top of the Capital Project Fund.
He explained further that the state is taking over the General Fund for next year; however, the school will have to pay both utilities and property/liability insurance from other funds.
Phillips said the state will not be giving schools payments in two-payments as they currently do now. He indicated that the state will be paying in 12 payments. Phillips said, “One of the problem areas will be utilities.” “We’re hoping as schools that they (state) have enough dollars to pay us.”
Phillips said, “The Capital Project Funds is 100 percent funded from the local levy.”
Phillips said schools will have to switch from the current use of the calendar year to the July 1 to June 30 fiscal year used in every other state.
Phillips said, “That’s where they’re coming in the back door at your house. Remember, this is an election year.”
Following a public hearing, the board also unanimously approved an appropriation for transportation. Phillips said, “There will be no additional taxes. “I know that rumor has been out there.”
The appropriation will be for $142,000 from transportation and $235,000 from the General Fund. He said that Indiana goes by appropriations rather than revenue and expenses.
Phillips also explained the make-up and use of JESSE services for children eligible for special education.