District's Proposed Budget Includes 26 Teacher Layoffs

The preliminary 2011-12 budget presented at Monday’s Board of Education meeting included several cuts and position eliminations that caused board members to approve an additional meeting to further discuss the budget.

Some of the budget cuts included the layoffs of 26 teachers, eliminating transportation for general education students, eliminating full-day kindergarten classes and eliminating three administrative positions.

The district must adopt a budget by June 30, 2011.

After hearing Superintendent John Savel present the budget, the board expressed concerns and scheduled a budget workshop meeting for 6 p.m. April 5 at the .

Before introducing the budget, Savel mentioned that superintendents from other districts were making similar cuts. 

“We are facing an unprecedented challenge for education in the state of Michigan–all school districts across the state are gearing up for significant cuts to programs and services,” Savel said. “They are fighting for survival.”

Savel gave board members and the many people sitting in the audience a look at the district’s fund balance over the last 10 years. In 2001-02, the fund balance was at about $7 million. The fund balance now, about $1.3 million, is about half of the balance at the start of the school year. By next year that number is projected to be just under $1 million, which is the lowest the fund balance has been in 10 years.

In addition to the reduced fund balance, Savel explained that enrollment has continued to drop since 2001.

“In Michigan, your funding is directly tied to students,” Savel said. “If you have less students, you have less money.”

Savel said the budget was constructed under the assumption that Gov. Rick Snyder’s proposal to cut per pupil funding by $470 is passed. Snyder proposed the cuts in February, but the cuts have not yet been passed.

Assuming the cuts do pass, Savel said he anticipates student enrollment to drop by 80 students for next year. This drop in enrollment translates to a loss of nearly $700,000 to the district.

Savel said there are some that would have the idea that the district should draw down from the fund balance to make up the losses and “hope for the best” in the future. He said the district has tried that approach in the past but it did not work.

With the state projected reductions, the district would be in a deficit of about $3.7 million if cuts were not made. Without reductions, the district still would be in a deficit of about $2.5 million for the 2011-12 school year.

“Even if we use all of our fund balance toward either one of those (projected budgets), we are in deficit if we don’t do anything,” Savel said.

These are the preliminary budget cuts proposed by Savel:

• All-day kindergarten discontinued (unless state funding requires for full funding). Tuition-based K-Care reinstated.
• Athletic subsidy reduced by 25 percent to $306,460.
• Eliminate all general education transportation.
• Eliminate three administrative positions: middle school assistant principal, supervisor of accounting and transportation supervisor.
• Eliminate 26 additional positions by increasing class sizes: 10 teachers at the elementary level, six teachers at the middle school level and 10 teachers at the high school level.
• Eliminate high school behavioral specialist position.
• Reduce maintenance budgeted overtime costs by $19,999.
• Close middle school pool.

The proposed budget reductions would save the district about $3.4 million, leaving the district in a deficit of about $300,000. The remaining deficit would be balanced using money from the general fund balance.

Savel said the assumed ramifications of the cuts would lead to larger class sizes, the elimination of some classes offered at the high school, and all athletic programs would have to raise additional funds in order to exist.