When Dr.

Wednesday, June 13, 2001

When Dr. James A. Hess arrived in Austin two years ago, the school’s finances were in chaos.

Hess inherited a $1.2 million deficit from his predecessor and a new Austin Board of Education wanted action to stop the red ink from flowing.

Two years later, Hess is a hero.

At Monday night’s regular meeting of the school board, Hess reported the district has reached the 99.34 percent mark of its goal to reduce spending by $800.000.

A massive $794,697 in targeted spending reductions have been made.

"My goal has been to get the district to this goal and I am happy to say we have reached that goal," Hess said. "We have definitely turned the district’s finances around from a $1.2 million deficit to where we are today."

The spending reductions are far-ranging, beginning with a $138,600 reduction in administration expenses.

The district will realize a savings of $58,000 from the sale/lease of the administration building along Fourth Avenue NE in downtown Austin, when administrators move to Au2stin High School this summer. The lease savings alone are measured at $40,000.

Another $12,500 in audit cost savings because of increased efficiencies will be realized. Reductions of full-time secretaries at Southgate Elementary School and the Austin Ranch School will realize a total savings of $28,200.

Districtwide, $95,266 in cost reductions will take place.

Custodial substitutes will be reduced, rental fees for school buildings to private users will increase and there will be shared hostings of events by other school districts.

The reduction of two elementary teachers at Banfield and Neveln will save $76,000, while other cost-savings measures at Ellis Middle School will reduce spending there by $155,900.

The savings because of spending reductions at the high school will result in $143,578 in savings, while the area of specialists will reduce spending in this area by $89,920.

A participation activity fee increase – $50 per student – and charging adult admission for baseball and softball games will boost revenues.

The other reductions come in the area of superintendent’s travel, freezing the superintendent’s salary, leasing the administration basement to the Adult Basic Education program, class size reductions and worker’s compensation.

Hess praised the work of Lori Volz, the district’s director of financial services, for helping the financial turn-around. He also said the cutbacks were made where their impact on the delivery of educational services will be the least.

When Hess arrived as Austin’s superintendent, the school district’s finances were in disarray.

Hess praised Al Eckmann, the retired business manager for the district, after a distinguished career as activities director. Hess credited Eckmann with uncovering the financial irregularities and with saying "no" to halt the process that was pushing the district deeper in debt.

The financial irregularities, coming on the heels of a citizen-driven referendum to aid the district’s finances, resulted, in part, with a massive turnover on the Austin school board.

Four incumbents lost their seats on the school board, when four first-timers were elected to the posts.

"The district’s finances are in excellent shape at this point," Hess said. "Lori Volz has done an extraordinary job and with the school board’s support, we can feel very good in the Austin district about our financial situation."

Call Lee Bonorden at 434-2232 or e-mail him at lee.bonorden@austindailyherald.com.