School budget cuts were once again the focus of a January Board of Education discussion.
A projected State foundation grant cut for school year 2010-2011 of $268 per student, will result in a loss of $1.7 million to the District based on the current student population. That cut is added to a $165 per student reduction, a $1 million loss in the current 2009-2010 school year.
With mandatory increases in retirement and health care costs for 2010-2011, the District is facing a $3.6 million shortfall even without the additional $1.7 million loss. The District faces further cuts if a new All-Day, Every-Day kindergarten program is started. The additional cost for that program is $500,000.
The discussion at the Thursday, January 21, Board meeting was led by Kevin Rose, Assistant Superintendent of Business and Finance. Information was presented, that led to questions and a productive dialogue at the meeting.
“While extremely unfortunate, Michigan’s economic woes continue and we are faced again with trimming a budget that frankly is already cut to the bone,” said Mr. Rose. “Our efforts, and I include the many sacrifices made by all our employee groups, have positioned us in many ways better than most, but it still leaves us with some hard decisions this year.”
The District has worked ahead of the downward curve to make cuts and preserve a fund balance of about $6.6 million, or about 13 percent of the District’s $52 million budget. The prospects for Michigan’s economy remain bleak for one or more years in the future and the District must continue to guard those funds, while using them carefully to preserve vital academic programs.
Potential retirements and possible federal stimulus funds could lessen the impact on the budget shortfall, but those decisions have not yet been made.
As in past years, the District will review all expenditures and prioritize all its options to trim as much as possible outside the classroom for the 2010-2011 school year.
“Everything is on the table and we will work together with all our employee groups,” said Board President William Laidlaw. “We are going to do this as a team.”
The administration will again meet with all principals, department heads and union groups, who will then work with their respective staff to decide where belts can be tightened to realize savings.
