By DAWN PARKER dlparker@lsj.com
EAST LANSING — As area school districts begin their budgeting process for the 2011-12 school year, the cutting continues. School board and administrators who already prepared for the necessity of some budgetary reductions found out further slicing would be likely as a result of Gov. Rick Snyder’s proposed budget. The proposed $470 per pupil cut in the state’s student aid allowance would only be the beginning, however, as losses in various other sources of funding and a 3.8 percent increase in the retirement rate may push the figure close to $700 per student. “We can’t keep cutting our children’s education – the stakes are just too high,” House Democratic Leader Richard E. Hammel (D-Mt. Morris Township) said in a recent statement. “Education is vital to creating jobs and growing our economy. Michigan needs businesses that create jobs, and those businesses need a highly educated workforce. This budget jeopardizes our schools’ ability to deliver the top-notch workforce we need to put people back on the job.”
News in brief Taco dinner April 9 to benefit food banks
Proposed cuts have East Lansing administrators projecting a deficit in the $3 million range. Finance director Richard Pugh said recommendations have yet to be made to the full board. Recommendations are due to the board’s finance committee by Friday, April 15, with plans to present to the full board at its regular meeting on Monday, April 25. By state law, districts must pass a budget prior to the beginning of the new fiscal year on July 1. While Snyder has told lawmakers he wants a state budget finalized by May 31, by law they have until Sept. 30 to avoid a government
shutdown. Pugh said it’s likely a recommendation will be made to dip into the fund balance to close the gap. The fund balance stands around $3 million, or 9 percent of expenditures. There’s risk in doing that, however. Pugh said using any portion of the fund balance will likely make it necessary for the district to have to borrow to meet cash-flow needs – something they have been able to avoid in the past. The fund balance was as high as 24.7 percent in 1998-99 and dipped to 7.8 percent in 2001-02. It rebounded to 12.8 percent in 2005-06, but has declined nearly every year since then.
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It’s recommended that “We want to educate our districts maintain their fund employees on what the numbalance at between 10 and bers mean in a mode of edu15 percent. cating as many stakeholders as we possibly can,” Clark said. Possible cuts Finding $5.3 million in Pugh said suggested and cuts would mean not using recommended cuts are being any of the district’s $1.8 mildeveloped, including staff- lion fund balance. ing cuts. Administrators are Okemos has already had meeting with building prin- two community forums in cipals to discuss staffing lev- November and January. els. Whether a third community “We will obviously be forum will take place is up looking at class sizes,” he to the school board, Clark added. said. With nearly all the conHaslett’s projected defitracts with bargaining units cit of between $2.6 and $2.8 – including the teachers – set million is “too huge a numto expire June 30, Okemos ber without some type of director of finance Bob Clark changes,” director of finance hopes closing a projected Steve Cook said. $5.3 million deficit will be a Administrators will likely joint effort. begin assembling a staffing
plan for 2011-12 the week of April 11. If layoffs are needed, Cook said those notices will begin going out in early May, and layoffs would be finalized by the time the budget is passed in late June. Negotiations are also open with all employee groups, which Cook said gives the district an “open door” to address financial issues. “We’ve explained to them that we’re going to need your help to navigate through this,” he added. “We’ve always had good relations with our employee groups. We’ve always been able to come to the table and work things out, and I hope we can do it again this year.”
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A taco dinner with all the trimmings plus homemade cookies will be held Saturday, April 9, from 4-6:30 p.m. at the Okemos Masonic Center, 2175 Hamilton Road, Okemos. All proceeds will benefit the Okemos, Williamston and Haslett food banks. Cost: Adults, $7; children 5-12, $4. For more information, contact Karen Cook at (517) 468-3316.
Local deficit
Towne Courier
Area school districts discuss possible cuts
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