At least 255 fewer students are attending Henry County schools this year.

New Castle, Blue River Valley and South Henry school officials say families are moving out of their districts in search of new jobs. When large classes of students graduate, they're replaced with smaller elementary classes.

New Castle reported its largest decrease in years, with a projected loss of about 172 students even though about 50 new students transferred into the district. Blue River Valley has 33 fewer students, and South Henry took a hit of approximately 64 students.

The plunging numbers mean the school districts will get hundreds of thousands of dollars less to pay salaries and benefits. School officials have not decided how to cut their budgets but will consider not replacing some teachers who retire and trying to save energy.

New Castle Schools Supt. Steve Fisher said he felt numb as the numbers rolled into his office on Friday. School officials have done everything they could to track down each missing student and make sure all possible students are attending class.

Now, they'll have to make the necessary budget cuts and keep trying to improve their schools, he said. He expects New Castle to squeak by on savings from 26 retirements last year and possible changes to staff health insurance.

"We just go on," he said. "We just move forward."

The school districts took their official head counts on Friday and will report them to the state. When the state finalizes its numbers, with kindergarten students counting as one-half, each district will get about $6,000, more or less, per student to go in its general fund.

In the past, smaller school districts could count on grants and guarantees to avoid major cash shortfalls. But new state laws did away with those guarantees. Every dollar a school district gets in its general fund depends on how many students go there.

On Friday, Charles A. Beard was the only Henry County district to draw more students, with an increase of 15 students. Earlier this year, the state had projected the Knightstown district to lose 29 students based on past trends.

Information was not available from Shenandoah or Nettle Creek schools on Friday.

The downward enrollment trend is nothing new for Henry County schools. Since 2009, New Castle has lost about 255 students and $1.6 million in funding as a result. South Henry and Blue River Valley have also seen steady declines.

The problem is families are staying in rural areas after their children graduate, while fewer young families are moving in, South Henry Supt. Wesley Hammond said.

"It's an aging population," he said. "People don't move out of these communities. If there aren't jobs there, families don't move in."

Hammond had counted on losing about 43 students, but the 64.5 drop means South Henry will get about $156,000 less than expected. No cuts, including staff layoffs, have been ruled out, but he hopes retirements and other savings will allow the district to avoid more drastic measures.

Blue River Valley Supt. Steve Welsh will review the district's budget at the end of the year to see how the $181,000 loss will affect the bottom line. The 33.5 students who either moved or transferred to another school will mean Welsh must review every retirement or resignation before deciding to replace anyone.
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