Indus School residents fight for their school to remain open following 4-2 closure vote

Apr. 6—INDUS, Minn. — As a PreK-12 school located roughly 80 miles north of Northome along the U.S.-Canadian border, Indus operates as "the small school making a big difference."

Living up to its slogan,

Indus School

currently serves around 100 students within the

South Koochiching-Rainy River School District,

which also includes close to 200 students enrolled at Northome School over an hour away.

Despite its humble size, district residents highlight the impact Indus has had on their lives and the potential ramifications should the school ever close down.

This possibility has been considered after the South Koochiching-Rainy River Board of Education voted 4-2 on March 8 to pursue the possible closure of Indus School as a cost-saving measure for the district.

This comes after the district went out for a $5.5 million bond referendum in 2021 that passed 115-95, but had to be thrown out due to voting irregularities.

Board members Scott Mai and Ralph Lewis — both Indus residents — voted against the potential closure while members and Northome residents Bob Stueven, Douglas Jourdan, Malisa Schue and Emily Lindley voted in favor.

Prior to any further action, the board must hold a public hearing on the matter, which took place on Monday, April 3, at Indus School. The board is expected to make a final vote at a future meeting on whether to close the school or pursue other options.

The Pioneer reached out to board members for comment but did not receive responses as of Thursday morning.

According to

information compiled by Superintendent Jeremy Tammi,

the district's general fund will operate on an $856,668 deficit for the 2023 fiscal year. Excluding the remainder of a roofing project that was paid out in the amount of $464,884, the deficit decreases to $391,784.

Tammi noted that current enrollment trends would lead the district to operate in a deficit of roughly $350,000-$400,000 for each upcoming year.

Tammi used numbers from the 2021 fiscal year to show differences in expenditures by school and illustrate the district's current financial situation. Indus School saw total expenditures of $2.6 million while Northome expended $3.6 million.

"I chose to use fiscal year 2021 versus 2022 because ESSER (Elementary and Secondary School Emergency Relief Fund) revenue was much greater in 2022 ($854,344) versus 2021 ($167,168) and does not accurately depict a typical school year of expenditures," Tammi explained.

Using Northome's $3.6 million in expenditures, when divided among the 181 K-12 students enrolled in 2021, Northome expended $19,904.45 per pupil. Dividing Indus' $2.6 million among its 100 students resulted in a per-pupil expenditure of $26,335.90.

The district's audit for the 2021 fiscal year detailed $6.5 million in revenue and according to Tammi, Northome School netted $3,170.55 per student while Indus School lost $3,260.09 per student.

Tammi estimated that Northome School will spend $20,239.92 per pupil this year with Indus spending $28,625.97.

To address the district's fiscal situation, Tammi presented the board with four cost-saving measures at its March 8 meeting.

Option one with estimated savings of $410,000:

* Save $120,000 by reducing district staffing by four paraprofessional positions, two at Indus and two at Northome.

* Save $100,000 by eliminating choir and band programs at Indus and Northome.

* Save $25,000 by sharing a school nurse between Indus and Northome.

* Save $90,000 by eliminating late bus rides at Indus and Northome.

* Save $60,000 by splitting the superintendent position with a neighboring district.

* Save $15,000 by eliminating Northome's German language classes.

Option two with estimated savings of $415,000:

* Save $250,000 by eliminating all athletic programs at Indus and Northome.

* Save $80,000 by eliminating all district revenue-dependent clubs and activities at Indus and Northome.

* Save $60,000 by eliminating two full-time paraprofessional positions, one at Indus and one at Northome.

* Save $25,000 by sharing a school nurse between Indus and Northome.

Option three with estimated net revenue of $517,000 would include the closure of Northome School. Cost savings were not specified.

Option four with estimated savings of $545,000 would include the closure of Indus School.

With the board voting to pursue option four, Indus community members who attended the March 8 meeting cited their concerns over the process of the board's vote and information presented by Tammi.

"There were four items, but it was pretty clear that one of those items was ever truly considered," 1992 Indus graduate Jennifer Hoppenstedt said. "There was no discussion on the other options ... Of the four options, this was the one. It was number four or nothing."

According to 1994 graduate Jake Hasbargen, who also attended the meeting and has a daughter within the district, board member Ralph Lewis moved to allow the board more time to research other options, but the motion never carried.

Neither the meeting minutes nor a video recording of the March 8 board meeting are currently available on the district website.

Hasbargen added that it would be difficult for the board to make a justified decision on the matter based on the financial report that Tammi presented.

"I do not believe that they have a good enough picture to close the school. I don't believe those eight pages were clear enough. They were hard to understand and no one asked any questions about any of the numbers or other avenues to take," Hasbargen said. "It just seemed pretty short-sighted."

Among other concerns about the district's financial management, a budget report from June 30, 2022, shows that the district had to return $850,187 to the Minnesota Department of Education due to oversight by staff when submitting their annual budget.

"The budget for three grants were submitted and approved under the FY 2021 award, but the expenditures were to be incurred in FY 2022," the budget report confirmed. "The District received $588,257 on Dec. 1, 2021, and the District returned the award to the MDE on Aug. 10, 2022.

"The District also received $261,930 on Dec. 22, 2021, of which the District returned $113,627 on July 13, 2022, because the District was not able to receive the bus in FY 2022," the report continues. "(And) $148,303 was also returned on Sept. 22, 2022, for being entered into the incorrect fiscal year."

MDE recommended that the district implement procedures to ensure the budget and expenditures are reported in the correct year and that expenditures are only drawn once the district has incurred expenses, which the district agreed to.

MDE also provided the district's expenditure report for the 2022 fiscal year, which reported a $745,000 building acquisition cost.

Addressing a room filled with concerned citizens, board member Scott Mai spoke at

Monday's public hearing

regarding the budget projections and potential effects of closing the school.

"You say 'projected', Mr. (Jeremy) Tammi," Mai said, "assuming, guessing. That's not concrete. You're putting a lot of lives on the line for assuming and guessing and projecting."

Mai also asserted that closing Indus would disincentivize people from moving into the area.

Jill Hasbargen, who has worked at Indus for over 20 years, urged the school board to keep Indus in mind when making decisions for the whole district and emphasized the opportunities that next year's seniors would lose if the school were to close.

"Do the four Northome board members not realize that we are part of the same district? Do our kids not matter because you don't know them? Do we as parents honestly not matter?" she said. "It is true that Indus only has 25% of our students that live within the district, but the other 75% of our student body choose to come to Indus because it's a better school for them and that should speak volumes."

Indus junior Abbi Hasbargen spoke about the ramifications Indus' closure would have on her senior year. She plays volleyball and softball and per rules by the

Minnesota State High School League,

a transfer student in ninth grade or above is ineligible to play varsity-level sports for one year at their new school.

If Abbi opted to attend school in a different district, she would be ineligible to play sports in her senior year, which could affect her chances of being awarded athletic scholarships and being recruited by colleges. She also expressed concern about taking away a starting line-up position from a player at Northome if she remained in the district.

Abbi added that Indus' closure could cause her class to miss out on experiencing several senior-year milestones together.

"I would've been the fourth generation of my family to graduate from Indus," Abbi said. "I will miss out on numerous academic scholarships that are specific to the Indus School. I will miss out on my senior prom, my last prom with all of my friends that have become my family after all of these years.

"If you close Indus, you will be breaking up a family," Abbi continued. "Closing the Indus School is not necessary nor practical for my class, my peers and myself. So, please reconsider the decision to ruin my senior year."

Should the school close, students would be able to open-enroll in other districts including International Falls. As it stands right now, an 80-student majority attending Indus is open-enrolled with 24 students living within Indus' district boundaries. Of Northome's student body, 103 live within the district with 95 students open-enrolled.

If a student opted to remain within the South Koochiching-Rainy River School District, Northome would be the only school to attend and lead to lengthy commutes for Indus students.

"When you have kids who will have to face a two-and-a-half hour trip, 123 miles one way every single day, it is undoable and it's not in the best interest of the kids or the best interest of the community of Indus," Hoppenstedt added.

Aside from burdensome transportation routes, the idea of losing the school that serves as a resource for many rural families did not sit well with Hoppenstedt and other community members who decided to take action.

Part of this action involved organizing a

GoFundMe campaign

to fund efforts fighting the potential closure of the Indus School and rally support to keep it open.

"I saw the reaction of my family, of my nieces (who attend the district) and just couldn't let this go without supporting the school and doing what I could to help the community and the students who'd be left behind (if the school closed)," Hoppenstedt said.

Along with the campaign, a

"Save Indus" website lists several testimonials

from Indus graduates and their families. Common themes from commenters include Indus' unique educational offerings and experiences, acceptance of all students and a close-knit sense of community.

"Closing Indus would separate friends. It would put kids back into other schools where they were bullied before. It would close hopes and dreams. Closing Indus would shut down kids who wish to learn," 2016 graduate Emily Kriske said. "Indus is home, Indus is acceptance, and Indus needs to stay open for all of us outsiders who need a home."

Letters of support have flooded in

from Koochiching County Commissioners, Lake of the Woods County Commissioners and the Littlefork City Council.

A letter submitted to the school board by District 3 State Senator Grant Hauschild, DFL-Hermantown, and District 3A State Representative Roger Skraba, R-Ely, detailed current considerations of a 5% increase in the basic education formula allowance for school districts this year and another 5% next year.

They noted that this would increase the per-pupil allowance from the current $6,863 for 2023 to $7,206 per pupil in 2024 and $7,566 in 2025. They are also considering a $1.6 billion appropriation to bridge a funding gap on special education services, which school districts are mandated to provide.

"This would provide substantial state resources to our local school districts who currently rely on their general fund operations to fund ever-increasing special education needs," the letter said. "It is our hope that with these additional resources, (the district) may have the resources necessary to keep the Indus School open."

In the midst of uncertainty, Jake Hasbargen hopes for a fruitful resolve that keeps the district intact.

"We share a lot of stuff in common (with Northome) and I hope that this isn't something that breaks our community apart," he added. "We've worked really well together for years and we've had our disagreements, but I'm hoping that this doesn't pit our community against each other."

With a final vote upcoming, Hoppenstedt emphasized the role a school district plays with regard to its students.

"A district is supposed to educate its students and advocate for its students," Hoppenstedt said. "The superintendent and school board are supposed to be keeping the interests of students in mind. Not just for one school, but both."