Corporation treasurer Laura Boldery delivered some unnerving news Monday night as the Southwestern School Board held a budget session ahead of its regular meeting.

The Department of Local Government and Finance, which reviews school corporation budgets, returned the corporation’s proposed budget with a General Capital Projects Fund amount significantly lower than what Southwestern had asked for, Boldery said. While most funds were granted, the Capital Projects fund was only approved for $548,442 – an amount Boldery said the corporation “cannot survive” on.

Last year’s Capital Project fund was $1.2 million.

Boldery said she requested that the state review actual expenditures from last year’s budget rather than what was appropriated. After that review, the state agreed to raise the fund to $971,286. The $13,808,891 budget proposal has now been returned to the state for final approval. Last year’s budget was $14,002,278.

In other business, student Annabelle Vosmeier, was honored for reaching finalist status as a National Merit Scholar. Vosmeier will find out in March if she is a winner of the national scholarship award.

Superintendent Trevor Jones reported that the schools’ new health clinics were operating smoothly and typically seeing at least one student a day and will now be open to staff.