The Shelbyville school board is looking to cut over $600,000 from its operating budget for the 2010-2011 school year and will be looking at additional cuts for the 2011-2012 year.

The State of Illinois has been behind in state aid payments and categorical and program grant funding to all public schools and universities causing districts to take hard steps to keep the schools open.

The State currently owes the Shelbyville school district more than $850,000. The state aid and categorical fundings make up more than 50 percent of the school’s budget. The State paid $1.2 million to the school district from the federal stimulus money this year. That money will not be there next year.

“The state is broke. This is the reality we are faced with in the next few years,” Shelbyville school board president Clay Miller told a standing room only crowd in a special meeting Tuesday evening.

Miller assured the crowd of staff and parents that the board and administrators have been looking at ways the district can “still offer a good well rounded education for the kids and keep the school in good financial standing.”

He noted that the board also has pressing issues to face with the heating system in the Moulton and High School buildings, as well as window replacement at Moulton, and maintenance of the nearly 100 year old Main Street School building.

“Over the past decade the school board has built a financial cushion for a rainy day. The rain has come,” Miller said.

He noted that administrators were all willing to take a pay freeze and that, although the board is in negotiations with the teachers union for a new contract, the teachers have also agreed to take a pay freeze.

The proposed cuts include reduction in staff, transportation, and extra-curricular expenses, saving the district over $623,000.

“These are not set in stone,” Miller said. He added that the board will need to make a decision on the proposals at next week’s regular school board meeting.

But the main concern of the evening focused on the proposed elimination of the STARS pre-school program, which is funded by a state grant. That $100,000 grant is part of the State’s cuts and will no longer be available.

STARS is a program working with pre-school children, who may or may not be “at risk”, to prepare them for Kindergarten. There is also a separate preschool program designed specifically for at-risk, special education identified children. That at-risk program is funded by the school district and will continue.

Several parents told the board how the STARS program has helped their children and asked the board to find a way to save the program.

One parent voiced her willingness to pay a tuition fee to have her child in the program.

Verdun noted that there are already a number of families who qualify for free or reduced lunches and that charging a tuition would probably keep children who need it most out of the program.

“While we could charge some, we would not be able to charge others. That would not be enough to pay for the program,” Verdun said.

He added that both Pana and Effingham have completely cut their preschool programs.

“We want to keep the program, but the money has got to come from somewhere,” Miller said.

When asked about using the reserves, the board admitted they had $4 million.

“Four million sounds like an astonomical amount of money but once you start dipping into it, it can go extremely quickly,” Miller said. “We’re already almost $1 million behind. That’s a big chunk gone.”

“We’re trying to make it least painful now and not get into the reserves,” said board member Larry Durbin. “We have to look far enough ahead.”

Board member Scott West reflected when he was on the board at a time when the district went bankrupt.

“That was a really tough time and we don’t want to go through that again,” he said. “It’s our job as board members to keep the district strong.”

“This is phase one. If the State doesn’t get its act together, phase two will be worse,” board member Mike Wheeler warned.

Wheeler added that as a district, local tax caps, the TIF district, and the State financial crisis are all working against them.

“We are looking for help,” said board member Matt Beyers. “We want to hear your suggestions and ideas. We need people to step up.”

Shelbyville Boosters president Tammy Bosgraaf offered the Boosters’ help with the cost of new uniforms and transportation expenses for extra curricular activities.

“We have raised $10 - 12,000 in the past to help pay for extra curricular - lately paying for extras. But now it’s back to being a need. We hope the board will let us help contribute,” Bosgraaf said.

The board emphasized that cuts made now could be reinstated as finances permit and urged the community to support them.

“All districts are having to do the same thing. I urge people to contact their state representatives, senators, and the governor’s office. Make your voices heard,” said board member Rob Bosgraaf.