Tipton residents learn about school operations through ambassador program

Feb. 17—TIPTON — If there's one thing school officials wish more people understood, it's school finances.

A group of Tipton residents learned about just that Thursday morning.

They heard from Bob Schultz, former Tipton superintendent and school administrator. As Schultz explained the main funds for schools — education and operations — and what each fund pays for, someone asked about the difference between a building administrator and an administrator.

A building administrator, usually a principal, is paid out of the education fund, which is also where teacher salaries come from. An administrator, like a superintendent, is paid out of the operations fund.

But it wasn't always that way, Schultz noted. Superintendents and other administrators used to be paid out of the education fund, prior to a state legislature change to schools funds.

Operations funds come from property taxes. It's a smaller fund, compared to the education fund, though there are a number of expenses operations covers. It can be a challenge to make the numbers work.

"This is what keeps me awake at night, along with (Superintendent) Ryan (Glaze) and other superintendents," Schultz told the group.

The group is this year's Tipton Academy Ambassador cohort. The annual program by Tipton Community School Corporation invites members of the community to get an inside look at how the school corporation functions through monthly meetings.

A school facilities tour is always included in the program. There's been an extra focus on facilities this year, given the ongoing construction and improvements projects taking place on campus.

Jason Fields, director of the Tipton County Public Library, is part of the Ambassador group this year. He joined after another library staff member participated last year.

"It's been great to learn more about the school system," he said. "I love learning about the community in this setting."

Schools can transfer up to 15% of its education fund to operations. It can be helpful in covering certain expenses; however, schools face a tighter squeeze due to rising costs.

Glaze said utilities and supply costs have doubled.

"It's killing us," he said.

Kiley McQuinn, a parent of five, found the budget presentation and candid conversation informative.

"It's certainly a greater appreciation of what goes on with administration and school boards," she said.

"That was eye opening, to learn what they have to deal with," Fields added.

Schultz also talked about the impacts of tax increment financing and the various ways a school can finance a construction project.

Operations or rainy day fund money are two ways, though it's unlikely either fund enough for a multi-million dollar project, Schultz said.

Schultz is also a former school chief financial officer and regarded as a school finance expert.

Donations and general obligation bonds are two other ways to finance school projects. Tipton's recently finished greenhouse was made possible, in part, by donations from the community.

There's also the use of a building corporation. Composed of taxpayers within the school district, a building corporation technically owns the school property during the construction process and assumes the debt a school takes out to finance the project.

Once the school pays off the debt, the property goes back to the school. It's a legal work around to a state law that limits how much debt a school corporation can have on its books.

The Tipton Ambassador program was started under previous superintendent Kevin Emsweller.

"I think it's a wonderful opportunity for parents and businesses to know more about the community they support," McQuinn said.

Next month, the eight people in the group will learn about student achievement and bus transportation. Covered topics include the number of miles Tipton buses travel. Glaze said transportation is usually an eye-opening learning experience.

"It's kind of interesting what they don't know," he said.

Spencer Durham can be reached at 765-454-8598, by email at spencer.durham@kokomotribune.com or on Twitter at @Durham_KT.