Thursday, February 1, 2007
State cuts could push 20% of school districts into the red
Jennifer Mrozowski / The Detroit News
Nearly one-fifth of Michigan's school districts could be in deficit by the school year's end if the state cuts per-pupil funding by $224, according to a survey by the Michigan School Business Officials.
The statewide organization, which represents more than 1,800 school business officials, surveyed districts this month.
It found that about 120 districts would fall into deficit if cuts are made to address a state shortfall of about $1 billion this year.
"Part of the frustration is that here we are in the middle of the school year, trying to educate kids and now we have to focus on cuts," said Tom White, executive director of the Lansing-based association.
If a district falls into deficit, it has to create a reduction plan outlining how to eliminate the shortfall. Districts in deficit often face teacher lay-offs, higher pay-to-play fees, larger class sizes or less money for programs.
White said his office sent surveys to the state's 524 K-12 public districts and some charters.
Richard Witkowski, superintendent for Garden City Schools, said his district ended the 2005-06 year with a $1.3 million deficit. The 5,400-student district's budget for this year is $46 million.
Since 2001, the school system has closed a middle school, privatized food and custodial services, reduced administrative and clerical staff and cut ninth-grade sports and elementary band.
"Trying to cut back another $1.1 million would be devastating to our district," Witkowski said. <snip>
The survey also found that if there is no increase in the foundation allowance for the 2007-08 year, 28 percent, or 168 districts, would be in deficit. In addition, 53 percent -- 318 districts -- would cut their workforce by five percent or more and 70 percent, or 420 districts, would reduce programs for students.
Hildy Corbett, spokeswoman for Utica Community Schools, said the reduction in per-pupil aid could mean cutting $6 million from the district's $255 million budget.
The school system has been chipping away at its fund equity for the last four years, and has already had a series of layoffs that trimmed more than 60 staff members, including teachers. The 30,000-student system also closed a building that was being used for preschool.
"At this point, we don't have a plan to deal with any additional reductions," Corbett said. "We're still crying the cry that we need stable revenue for districts and children."
The system is weighing all options, she said.
In Detroit Public Schools, the per-pupil reduction could mean a loss of around $20 million, said Dori Freelain, the district's chief financial officer. The system already is trying to eliminate a $200 million deficit.
"We would be in a very severe situation," Freelain said. She could not say what areas the district would cut. But the system doesn't have much leeway with staffing because of employment and labor contracts and because the cuts would not be in response to a greater decline in enrollment, she said.
"It would generally mean we would take a hard look at current spending and place some serious controls on spending patterns and spending levels by year's end," Freelain said.
You can reach Jennifer Mrozowski at (313) 222-2269 or
jmrozowski@detnews.com.
