Valparaiso Community Schools Superintendent Jim McCall and Chief Finance Officer Jim Holifield are ready to lead the January start of the new year with an approved $100 million 2025 budget that was passed by the Valparaiso City Council unanimously, including 3% salary increases for staff and administration. “Our budget consists of an annual investment from our six tax-supported funds, with only our education fund not supported by property taxes but by sales tax,” Holifield explained to the council members, three of whom are new to their elected seats and approval of the school budget. “The education fund, operations fund, operating referendum, capital referendum, pension debt and debt services comprise our budget. Teachers’ salaries and benefits comprise more than half of what is included in our annual education fund.” The 2022 Valparaiso Community Schools budget was $86 million, an increase from the advertised 2021 Valparaiso Community Schools budget which was $79.4 million, with the actual realized budget being slightly less for taxpayers at $79.3 million. The 2023 Valparaiso Community Schools budget was $93 million, and, in 2024, it rose to $99 million. The 2025 Valparaiso Community Schools budget is just shy of $101 million. McCall said the deliberation and agreement for the new teachers’ contract was “a strong process involving shared goals, collaboration, and trust.” He said all veteran VCS teachers will receive $2,000 to their base pay, capping at $90,500. Any teachers at the previous top of the scale will receive $1,000 to their base and the remaining $1,000 in a stipend. “We will be raising the base pay for beginning teachers by $1,200 from $53,100 to $54,300, which should keep us near the top in Northwest Indiana and throughout the state,” McCall said. “The $2,000 for the veteran base pay represents a 3.1% increase for our teachers on average. In the past four years, we’ve now been able to provide almost $14,000 in base increases to the veteran teachers, and we have increased beginning teacher salaries over $11,000 across the same amount of time. It is also important to note that all veteran teachers will receive a 1% referendum-funded retention stipend at the end of this first semester.” McCall said there are also “minor changes” to the extracurricular account positions. “We are implementing middle school assistant wrestling coaches and VHS assistant Hope Club sponsors due to the increased participation in those programs, as well as adding an extra coach to the boys and girls high school basketball programs. We are also increasing the stipends for Science Olympiad at all three secondary schools.” McCall said he hopes a new incentive formula folded into the finances will help increase teacher retention “and reward consistency and attendance.” “We’ve added a layer of benefits for those teachers who have not been covered by severance or 401 provisions in the contract, whereby now, teachers who have accumulated more than 90 days of sick leave and are not in an aforementioned covered group will be able to exchange those excess days for deposit into a VEBA account in the amount of $91 per day,” McCall said. “This beta model is designed as a defined limited liability for the district and is being funded through the investment returns we’ve received this year. These mentioned changes are what was made to the master contract through the negotiation process.” Since Valparaiso Community Schools has an appointed school board consisting of trustees determined by the Valparaiso City Council and the Center Township Advisory Board, rather than elected school board members, the school budget and public hearing process are only before the city council for a vote of approval, as opposed to being voted and passed for adoption by the school board. McCall said the most recent student enrollment reports, including the Average Daily Membership (ADM) audit, remain crucial since those numbers drive revenue and allow determination from the state through the basic grants allocated to the education fund. He said this school year, Valparaiso Community Schools registered 6,359 students, a decrease of 111 students from the previous year. However, he also noted Valparaiso High School graduated “one of its largest classes ever,” with 550 students in the class of 2024, a contrast to the kindergarten classes this year which were smaller than average, comprising only 430 students and accounting for most of the decline in ADM figures in recent recall. McCall said the decrease in enrollment is due more to a declining student population and less of a factor of students transferring to other schools. “While parents have the option to enroll their children in different schools for various reasons, the declining birth rate over the past few years has resulted in smaller student cohorts,” McCall said. “Additionally, the economy has led to less mobility within the community, as many people choose to stay in place due to higher interest rates.” Holifield added that many school corporations are experiencing declining student numbers unless they enroll out-of-district students to compensate for the losses. “The Valparaiso Community Schools education fund remains healthy despite the drop in enrollment, thanks to increased revenue from the state’s boost in the basic grant fund due to higher per-pupil funding,” Holifield added. Philip Potempa is a freelance reporter for the Post-Tribune.