Board addresses questions

Dear Hot Springs Community, September 12, 2024

The Hot Springs School Board would like to take this opportunity to explain what has happened since the May 3, 2024, General Fund Levy election, and to inform and answer some questions. During the election, it came to light that not all absentee ballots had been mailed out. Upon knowledge of this, the board began to try and figure out what had happened and how to proceed in making sure it was a fair and legal election with all registered voters being given the opportunity to cast their vote. It is our understanding that an error in mailing lists occurred. On June 21, 2024, board member Jen Christensen filed in Sanders County district court to have the election overturned. The school did not argue the objection and on July 11, 2024, District Court Judge John Mercer signed an order granting the election be voided and a special election begin within 85 days. This is a RERUN ELECTION. THIS IS NOT ANOTHER ELECTION. This is an all-mail in ballot. Ballots will be sent out Sept. 12 and are due back Oct. 2.

The first thing we’d like to bring to light here is that at no time did the school deny that a mistake was made. At the soonest opportunity, a board member took the legal steps to ensure all registered voters in our community had a chance to vote.

We’ve had many questions asked about how the school came to be in debt in our general fund account. Without listing every dime spent, here are some of the numbers that show how we got to where we are, and why it is necessary at this time for us to ask the taxpayers to pass a levy.

Please note that in the past 13 years, there have been three superintendents, five principals and 13 different board members. Many decisions have been made with many different combinations of people. While we all share the load of decisions made, none has claimed to be perfect.

Student

enrollment State

Revenue Spending per student/year Last general fund levy passed

2020 = 200 2020 $1,627,545 2023 = $19,570 2008 for $40,000

2021 = 202 2021 $1,640,545 2024 = $16,250 Technology levy passed 2015

2022 = 180 2022 $1,640,230 2025 est. = $13,580

2023 = 173 2023 $1,607,183 $20,000 expires 2025

2024 = 169 2024 $1,578,783

Impact Aid funding is based on enrolled students whose parents either live on or work on tribal trust land. This money is used to supplement the general fund account. Prior to 2015, the sitting school board did not spend much if any impact aid money, therefore no matter the expenses, the general fund account ran in the black. This was a misappropriation of federal funds as impact aid funding is meant to be spent each year. Since 2015, the funding has been used properly, therefore showing the gap between funding and expenses. It has recently been used to help decrease our cash deficit and will continue to do so until it is no longer needed in that capacity.

2017 School purchased Pre-K building for $79,275, set up costs $3,361. Paid out of impact aid money, with no other help from local Tribal entities as is done in other school districts on the reservation. Sold building for $30,000. This same year the walk-in freezer needed major repairs, and the heating system began to fail. In addition, the school made some improvements to the playground area.

2018 Heating system repair $330,000. Paid out of impact aid fund account in conjunction with $150,000 bank loan paid at $33,000/year for five years.

2020-2021 we received approx. $1,138,875 in ESSER funds with the requirements that it be spent on the prevention of Covid or other airborne related illnesses. It had a spend by date of 9/30/24. Portions were spent on supplies, curriculum for remote learning, professional development, and salaries for staff, along with HVAC in the new gym lobby and gym, new roof and insulation in the shop, mini splits in the high school and a food service serving counter with a sneeze guard to name a few, many things the school would not have purchased without this

funding.

2024 Early Retirement buyout $36,000 paid out of the impact aid fund.

We are very fortunate to have a very qualified and well-educated teaching staff. We can offer more electives than many neighboring schools. We offer FFA, FCCLA, and graduate certified welders. We are one of very few schools that offer both home economics, shop and agricultural classes taught in person. `

We have very small class sizes benefiting our students with a low teacher to student ratio, but this does not lower the cost of our teaching staff. We need the same number of teachers as a school with 30 students per class, while some of ours are as low as eight per class. While Covid caused a drop in test scores around the country, ours have rebounded nicely and are continuing to improve.

We are down at least eight teachers since the year 2007. We have lost journalism, advanced PE, in class foreign languages, all business classes, in school year drivers ed, band, choir, drama, creative writing, in class AP classes, academic counselor, librarian, cross country, ski club and principal just to name a few.

Of nine neighboring school districts, our starting teacher salary is 3rd from the bottom, and with our now one administrator performing both superintendent and principal duties, that administrator salary is tied for the lowest. We continue to do more with less.

As our enrollment continued to decline, state revenue followed with less than a 3% increase that does not keep up with inflation. While we have lowered our per student expenditure, the state and federal school funding formula does not allow us to continue to offer what we are now without an increase in income.

We do not list these to make excuses, but more to explain the perfect storm that has occurred between the lack of state and federal funding, the proper usage of impact aid monies, the unexpected expense of the heating repair system, the unanticipated failure of the Pre-K program combined with a declining enrollment and increased expenses due to inflation.

It does not go unnoticed that asking for a raise in general fund mills puts a further financial burden on everyone, but the only way public schools are funded is through minimal state funding and local property taxes. If the worst-case scenario were to happen and we must close one of our schools, your tax dollars would follow the students to the next closest district. This would include bussing students and inevitably losing income and stability within our community.

We try our best to make the best decisions for our students, taxpayers and community every day. We trust our school clerk and business administrator and believe that an honest mistake was made during the election and that no malfeasance has occurred nor intentional neglect. We invite you to please attend board meetings and become involved in the education of our youth. An educated community is a strong community, and we appreciate your support.

The 2024-25 Hot Springs School Board,

Chairman, Ricky Depoe

Vice Chairman, Julie White

Trustee, Jen Christensen

Trustee, Lynette Ek

Trustee, Mandy Depoe