PENDLETON — The $1.5 million budget shortfall facing South Madison School Corporation may be the catalyst that drives the school board to adopt a new policy. The board is considering allowing non-resident students to attend the district’s schools if those students pass rigorous screening tests. The state would transfer $6,000 into the school system for each student that was accepted.

“I know this is a sensitive issue with our patrons,” said Thomas Warmke, superintendent. “But according to legal counsel we can set standards for the students we want to accept.”

While the board has discussed this issue in past years, the policy was not adopted for fear of bringing problems into the district and diminishing opportunities for students whose families made a commitment to the community by moving into the district.

Patricia Valentine mentioned she would not want non-residential students to be eligible for the honor of valedictorian or salutatorian of the graduating classes. Buck Evans indicated that parents would be upset if local students were unable to play on sports teams because a non-residential student outperformed them.

“If we do this, we need to not treat these kids like second-class citizens,” Mike Gaskill said. “They should be eligible for all activities and opportunities. We have to remember that athletics is a side activity. We are not required to provide athletics opportunities to everyone. We are to provide education to everyone.”

“That money could really come in handy — especially when we are talking about a reduction in force,” Warmke said. “If we were to add 25 students, we could save a teacher’s job.”

“This is a controversial issue, but our revenue is not limited as long as we can bring in more students,” Gaskill said. “We have some empty space at East. I would rather welcome non-residential students with good grades and good discipline records than let teachers go.”

“I know it’s not been the policy in the past, but with a $1.5 million deficit we will have to do things differently than in the past,” Chris Boots said. “Competition is good. This opens up the idea that parents can choose the best schools to enroll their children in.”

“I have always opposed this,” said Valentine, clearly upset by the proposal. “But in these financial times, I’m willing to consider it to save a teacher.”

Amy McGinnis asked about the time line for enacting such a change. Warmke said that it was entirely the board’s decision, but that if they wanted to implement it for the 2009-2010 school year, they would have to act quickly.

Some board members approved putting the first reading of the policy on the agenda for the next meeting, while others said they were not ready.

“If we delay too long on that we will lose the opportunity to save some teacher jobs,” Gaskill said. “The clock is ticking.”

“Even if we move forward with this, there is

no way to know if we will have a large enough response to save any jobs,” said Jon Trippeer, board president.

“I think we will be shocked with the response,” Gaskill said.