East district would struggle, Granite says
"Because revenues were overestimated and taxes cannot be sufficiently increased for operational functions, the new district would either need to close schools or reduce the funding level for programs and services," says the district's "preliminary analysis" of a preliminary financial feasibility study commissioned by Salt Lake County, Holladay and South Salt Lake, which are considering breaking off from Granite.
The information adds a twist to the issue. The cities started examining a break-off after the Granite Board of Education closed east-side schools. The feasibility study by Wikstrom Economic & Planning Consultants, released last month, showed the east side would have enough money to maintain programs and schools, while the remaining district in the growing west side would struggle to raise enough money to maintain its programs.
District leaders want the public to have the information they mined, and hope cities get it to them before town hall meetings about the feasibility study are over.
An east district "can't do business as usual without making cuts," Granite Superintendent Stephen Ronnenkamp said. "People ought to know what this is going to do for them or to them."
Wikstrom President Karen Wikstrom, who met with district officials May 10 about their concerns, has not seen Granite's analysis. But, she said, when she re-ran some numbers in question, the outcome was not changed.
"What we looked at, there was no need to look at increasing the operating budget (in a new school district)," though building repairs would cost money. And in terms of capital, there's "definitely headroom" in the tax structure to get the job done, she said.
Salt Lake County Mayor Peter Corroon and Holladay Mayor Dennis Webb noted the feasibility study is billed as preliminary and that a final study will come soon.
"We have hoped that the district would respond to this preliminary study and that if there are inaccuracies, or we haven't gotten the right information, then we're anxious to get that, whatever is correct," Webb said. "Our purpose ... is to get the accurate data as best we can get and put it in a report and let the citizens decide."
The proposed new district would encompass areas east of the Jordan River and include Holladay, South Salt Lake and East Millcreek township.
Another movement to split the Jordan School District also is under way.
The Wikstrom study shows Granite's east side has 24 percent of the students, yet brings in 47 percent of the district's tax base. That said, a proposed east-side district would have more money per student than the current Granite District. While the area's buildings would need about $258 million in repairs, the new district could handle it, the Wikstrom study says.
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