Jan. 15--MT. VERNON -- District 80 will receive flat funding from the federal government for Head Start next year, but notification from the U.S. Department of Education that Teacher Retirement System pay backs are increasing will hit the district budget in all federal grant areas.

"What that requires us to do is pay back a percentage of any salaries that come from federal grant money," Superintendent Kevin Settle reported to the district board on Wednesday. "It's like a tax for using their money to hire people."

Settle said the rub lies in where the money goes that is paid back to the Department of Education.

"It doesn't go to TRS," Settle said. "We don't know where it goes and no one seems to be able to get that answer for us."

According to Assistant Superintendent Tyler Brown, the TRS pay back was at 7 percent three years ago, was raised to 13 percent two years ago, raised to 17 percent last year and will be at 23 percent this year. Settle explained that means from the percentage of money spent in teacher and staff salaries paid from federal grant funds -- which affects Head Start, special education, the after school program and all No Child Left Behind grants -- 23 percent of the money spent on those salaries is given back to the federal government.

"It means we take a great reduction in the grant funding," Settle said. "For example, with Head Start, of $1.3 million in total funding, $1 million is spent in salaries, that takes $40,000 of budgeted money they say, okay, now send it back."

Head Start will be funded at a flat level again this year at $1.36 million, however, costs of providing the program within federal guidelines -- which include the number of teachers and staff -- have put the District 80 program in budget trouble.

"Unfortunately, funding has not kept up with the increasing costs of the program," Settle said. "It's an important program for the district and we've been subsidizing it quite a bit this year."

Letters have been written to both U.S. Representative John Shimkus and U.S. Senator Dick Durbin asking for explanations of where the money goes after it is returned and why the grant funding is being hit by such large increases in the pay back, which not only affects schools in Illinois, but across the United States.

Settle told board members one of the ways to "play the game" is to pay fewer salaries from federal funds and use state funds instead.

Settle has asked staff to "start thinking about what we have to do to survive."

"It's a real puzzle, but we have time to work on it and try to find a way to make it work," Settle said.

In other business, the board:

Heard an enrollment update that included information the district had lost 14 students since the beginning of the school year;

Were told the presenters for Friday's full-day teacher inservice are Gretchen Wilson and Associates which will train teachers on reading instruction and how to meet the Response to Intervention requirements;

Approved a response to minor findings in an IIllinois State Board of Edcuation grant audit from May 2008;

Approved Settle's participation in the American Association of School Administrators Ready by 21 project. Settle and four other Superintendents of the Year have been asked to participate in the peer working group; and

Gave approval to allow Settle to pursue information about purchasing electricity from an energy marketer, an idea which was initiated by district business manager Nancy Herzing.

-----

To see more of Mt. Vernon Register-News or to subscribe to the newspaper, go to http://www.register-news.com/.

Copyright (c) 2009, Mt. Vernon Register-News, Ill.

Distributed by McClatchy-Tribune Information Services.

For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

A service of YellowBrix, Inc.