Schools face funding crisis

by Richard Lamb, Advance Editor

There were no cuts made to the current Rogers City Area Schools program, but if things stay as they are at the state level, those days are coming. After the state put a possible reduction of $127 per student on hold last Thursday, the district set aside possible cuts and adjustments. But the cliff school districts across Michigan say they are approaching grows closer as state leaders fail to come up with a solution to all the troubled school districts in the state.

According to the governor?s office the decision to ?pause? the reduction of school aid payments is due to school districts spending less than authorized in 2009 and because of an unexpected increase in non-homestead property tax values.

?The unexpected change in the School Aid Fund, which has led us to pause the proration ordered on Oct. 22, provides temporary relief for school districts around the state,? Governor Jennifer Granholm said. ?Throughout these uncertain economic times, our focus has been on giving school districts the most up-to-date information available so they can adjust their budgets accordingly. School districts still face tough decisions about how best to deal with significant funding cuts, but we are pleased that the closing of the books for 2009 has brought some short-term relief.?

ALTHOUGH SCHOOLS may have been granted a temporary reprieve for the moment, prospects for the 2010-2011 school year look grim by any account. And the ?up-to-date? information from the governor?s office came only as Rogers City school leaders, and others across the state, scrambled to find ways to save money.

?It is a very frustrating situation to deal with,? superintendent Jamie Huber told the school board at Monday?s meeting. ?I would encourage everyone that we need to come together on this so something can be done about it, because I don?t want this to happen to our district.?

Huber told the board that he anticipates a funding cut of at least $500, and maybe as much as $800 per student for the next school year. The school already has budgeted to spend some $227,000 more than it takes in for the current year. In addition to that, enrollment is expected to decline in the district next year, so the loss of funding would certainly mean a dramatic cut in programs, beyond those discussed at Monday?s meeting.

?We are looking at a possible $650,000 hole in our budget for next year?and that is conservative,? Huber said. To put some perspective on the projected deficit for next year, not to suggest that certain cuts be made, Huber explained the entire transportation program costs $300,000, while all athletics cost $121,000, Huber said. THE FINANCE committee, consisting of board members Tim Horn, Armand Loiselle and Lee Gapczynski, recommended cutting the art program and teacher, among other cuts, but those cuts were only discussed and not acted on as the district waits for the latest word from the state.

Horn said the ?entire situation stinks.? The finance committee recommended maintaining a 15 percent fund balance, choosing not to dip into the ?reserve? funds to save any programs. Board policy is to keep the balance at 15 percent, roughly enough to fund the entire district for six weeks. Horn said cutting any program is unpleasant, but a necessary chore for the board. ?I don?t want to cut anything, but we are caught between a proverbial rock and a hard spot. It wasn?t anything we did. We tried to manage and spend our money wisely. What has happened from the state is a really bad thing,? Horn said. ?I don?t see any way out of it.?

The state has been fiscally irresponsible and the school districts have to pay the price, Horn said. ?You have got to remember when you go to the polls in November that anyone who is responsible for this doesn?t deserve another term,? Horn said. HUBER EXPLAINED that the finance committee found ways to save about $16,000 by re-assigning some staff, and transferring about $5,000 from the food service program?two moves which would increase ledgers on the revenue side.

The other proposals considered by the finance committee would be to do nothing to the budget and pull funds from the fund balance to support current programs. That would leave fund balance at about 14 percent, Huber said. ?We are already deficit spending this year, and that amount is only going to compound next year because that hole doesn?t get filled next year,? Huber said.

The best options, the finance committee determined, include a voluntary pay reduction of 1.5 percent by Huber, and reduction of ?schedule B? assignments outside of school including payment for the band director outside of school, the drama club advisor, class advisors and voluntary pay reductions for junior varsity winter sports coaches. Also proposed was elimination of funding for junior varsity baseball and softball, the assistant track coach, and middle school track coach, Huber said.

?I would much rather see all of us take a little bit, than see our students lose programs. That also goes with my strong belief that you can?t begin pointing fingers at what else you need to cut, because we all don?t want to be affected by cuts. But if we all are willing to take a little and shoulder the burden, it means a whole lot left for everybody,? Huber said. By far the largest percent of district funds are spent on labor, the majority on teacher?s salaries and benefits.

AT LEAST ONE dozen teachers and as many students and parents were in attendance in support of the art program and teacher Kelly Phelps. The board took no action on the recommendation, choosing to wait and see what happens in the state legislature and governor?s office.

Several spoke at the beginning of the meeting, urging the board to save the art program. The high school library, the meeting place of the board, had many pieces of artwork on display, which was brought in by students in support of their teacher. ?We have great programs, and as you can see by the artwork that is here, there is no question about the program. To be honest with you, it would be a lot easier if we didn?t have great programs, great students and great staff that produce great things. But when it comes down to making decisions like this, it is more than just one program. It is more than just one student. It is the look of our whole district in regard to the upcoming school year,? Huber said.

Everyone should be angered by the situation, Huber said. ?There is nothing fair or good about this but we need to be realistic about it and that means tough decisions,? Huber said. BOARD MEMBER Lori Dix said she was glad the recommendation from the finance committee was not an action item. She would favor to use some of the fund balance to maintain current programming.

?I?m not in favor of spending money we don?t have, but when we can find the money, I am in favor of providing for every kind of student to pursue their talent,? Dix said. ?Lansing is not yet quaking in their boots. They do not sense community outrage at this point. They see education activists as the pesky mosquitoes that they always are but communities have just not reached them at a level where they are compelled to act.? Board chairman Mike Marx said the state of funding for schools in Michigan has him angry.

?It is just a game of politics in Lansing with one ringleader, and we all know who she is. To put our students, our staff and our community out there as a pawn for her political gain is disgusting,? Marx said. ?I don?t know what state of mind that person is in, but she doesn?t belong leading.?

Earlier in the meeting, the board passed a resolution supporting the SOS movement, the statewide movement to ?save our schools, save our students? which rallied in Lansing last month. The resolu

tion ?encourages the governor and legislature to look beyond the immediate revenue shortfall and focus on the perennial and structural deficit that plagues school finance in Michigan.?

In other board matters: ?Huber praised bus driver Mary Fairbanks for her possible life-saving actions in avoiding an accident recently. Police chief Matt Quaine sent the board a letter telling how he observed Fairbanks sound the horn repeatedly to warn a motorist to stop in front of children boarding her bus. The car driver appeared to ignore the flashing lights and the children crossing before Fairbanks sounded the horn.

?Teacher Chad Coolman applied and received funds from the Northeast Michigan Youth Advisory Council to co-sponsor an archery program as a part of the physical education curriculum. ?The annual Christmas dinner is set for Thursday, followed by a musical program to begin at 1 p.m. ?The Christmas program presented by the high school music program is set for Monday at 7:30 p.m. in the high school gymnasium.

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