Oskaloosa.com

October 22, 2009

'Trickle down effect' from statewide cut unknown

By ANDY GOODELL

OSKALOOSA — Where do recent statewide cuts leave Oskaloosa?

The problem is, no one really knows for sure.

After Gov. Chet Culver announced a statewide spending cut of 10 percent for all state agencies earlier this month and 1,300 job cuts among state agencies, Oskaloosa city and school leaders have their concerns.

“I think we’re in the unfortunate position of waiting,” said Oskaloosa City Manager Michael Schrock Jr. “There’s little information about this. At this point, there is speculation as to what the impact could be.”

This uncertainty, along with what Schrock has pointed out as an anticipated $15,000 shortfall in the city’s budget, has left at least one Oskaloosa City Council member on guard for what is to come.

“What’s the trickle down effect that’s going to have on the city of Oskaloosa,” asked Councilman Wesley Wills. “While we don’t see it, it’s in the shadows. Indeed, there is going to be a day when we’re going to have less money needed to get more done. If you see something coming down the pike that we need to deal with, we need to be prepared to make some change in our direction.”

City council member Jimmy Carter is confident in the city’s ability to keep tabs on its checks and balances. City Clerk Marylin Miller also had good news, saying the city’s property taxes are “right on target” despite a low number of building permits and fees, as well as lower interest received.

“I’m thankful for the city staff for keeping us abreast of where we are financially, giving us a line by line breakdown,” said Carter. “If we have issues or concerns, as Wes has expressed, we can bring them up and we can work with them as we go on.”

Interim Oskaloosa Mayor Dave Krutzfeldt also said not much is known about the statewide cut’s impact on the city. Krutzfeldt added, he had been concerned about a large cut such as this for several years. Luckily, there is a glimmer of hope involved, he said.

“The city is not dependent on the state,” said Krutzfeldt Thursday afternoon. “It affects the school in a much bigger way.”

This impact on the Oskaloosa School District was addressed by Superintendent Carolyn McGaughey at a recent school board meeting.

“Education certainly is drastically impacted with those cuts,” said McGaughey earlier this month. “Currently, we’re waiting for more information from the state.”

The cuts will impact both the general state aid funds and “numerous categorical funds,” as well, according to McGaughey. She added, the district will wait for recalculation of those specific funds before any big decisions are made. Once those specifics are known, the school board will begin scheduling work sessions to discuss the district’s plan of action, said McGaughey.

“Certainly, this is the largest cut we’ve seen in at least nine years,” said McGaughey. “It’s going to have an enormous impact on our district.”

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Herald City Editor Andy Goodell can be reached at news2@oskyherald.com