Schools face increased costs

INDIANAPOLIS -- Public schools will need at least $164 million in new money next year to sustain present programs and meet salary increase obligations for teachers and staff, according to a statewide survey by three school lobbying organizations.\nThe survey showed that schools face at least a 3.1 percent increase in unavoidable costs because of rising enrollments, incremental increases in salaries, and rising costs for utilities and health and property insurance.\nThe survey was answered by 267 of Indiana's 293 school districts and predicts the impact each will face if they received no increase in state funding for basic operations and had money for transportation and other programs cut.\nGov. Frank O'Bannon proposed such a scenario in a two-year budget plan he presented last month to legislators.\nIt was only a starting point to budget negotiations, administration officials said, but schools have taken the possibility of flat state funding seriously.\nSen. Luke Kenley, R-Noblesville, said rising insurance and utility costs were justifiable needs beyond the control of school districts and that the state should try to provide the money to meet them.\nBut schools do have control over rising salaries, Kenley said.