It wasn’t easy coming up with a balanced budget for Oxford Schools next year, but lots of good news concerning retirement issues helped make it happen.
‘I think it’s a good budget,? said Tim Loock, the school district’s executive director for business and finance. ‘It’s been a difficult process, but it looks a lot better than it did a few months ago.
The school board is expected to adopt the proposed $37.191 million budget for the 2007-08 school year at its Tuesday, June 26 meeting following a public hearing.
Faced with $1.592 million in spending increases, the district was able to offset these additions with $449,000 in new revenues plus $1.145 million in budget reductions, resulting in a budget surplus of $1,800.
‘We basically have a balanced budget,? Loock said.
The proposed budget represents ‘less than a one percent increase? over this year’s budget and is ‘realistic in terms of revenues and expenses.?
‘We’ve been able to not have our budget grow exponentially,? Loock said.
However, he noted that given the governor and state legislature have yet to work out a budget deal, the district still doesn’t know where it stands in terms of the state foundation allowance it receives, which currently works out to $7,343 per pupil.
As a result, this proposed budget is ‘based on what we know today.?
‘We’re being prudent in our assumptions of what we’ll see next year in terms of revenue and student count,? he said.
Reductions
A large portion of the budget reductions came from the 10 teachers who retired this year.
Their retirements will save the district a net $395,000 factoring in the cost for replacements ? assuming all the positions are refilled ? and the early retirement incentive that was offered.
The fact that retirement costs paid to the state decreased by $171,500 was also a big boost to the budget. Currently, the district pays the Michigan School Employee Retirement System 17.74 cents for every dollar spent on payroll. But next year, that rate is dropping to ‘just under 17 percent,? according to Loock.
‘That was really good news,? he said.
The district is proposing eliminating the equivalent of 4.25 full-time paraprofessionals to save $75,000, but without actually laying anyone off. This would be accomplished by reducing hours.
‘If we have parapros that were working five hours, they might be working four hours next year. Six (hours) they might be working five,? Loock explained. ‘By the end of the process, we probably won’t have anyone that’s laid off, but I can’t guarantee that until it’s all said and done.?
The equivalent of 1.5 full-time elementary teachers to save $82,500 is also being proposed.
Again, this would be accomplished not through layoffs, but by ‘filling classrooms up as much as we can? and not replacing teachers who happen to retire or take a leave of absence.
‘Nobody’s going to be pink-slipped as a result of this,? Loock said.
An elementary media specialist who retired this year won’t be replaced, resulting in a $100,000 savings.
Two central maintenance service workers who left to replace retiring custodians at schools also won’t be replaced netting the district a $50,000 savings.
These central workers used to work all over the district cutting lawns and plowing snow.
‘Now, we’re contracting with outside companies to take care of those services,? Loock said.
Other budget reductions include $60,000 in energy conservation savings generated by installing more efficient heating and cooling systems plus lighting and water fixtures.
The schools are also expecting to save $50,000 on natural gas next year.
‘That market has softened a little bit,? Loock said. ‘If we don’t have any bad hurricanes in the next several weeks, we feel we’ll be able to purchase natural gas at a lower cost than we have.?
New revenues
The majority of new revenues projected in next year’s proposed budget are being derived from an additional $375,000 in tax monies collected by the intermediate school district via a special education millage approved by voters in September 2001.
A projected $50,000 from the district’s rental of school facilities to outside groups coupled with an additional $24,000 generated by higher pay-to-participate sports? fees (which are increasing $50 per athlete) make up the rest of the new revenues.
Loock said the proposed budget is ‘not assuming any increase? in the state foundation allowance, which for Oxford currently equals $7,343 per pupil, or the number of students enrolled in the district.
‘If we get more students that would be good news, but with the poor economy and our own projections indicating things are pretty flat in the student growth area right now, we’re being conservative and assuming no new kids,? he explained.
Increases
A majority of the budget increases for next year revolved around wage increases for staff and the rising cost of employee benefits.
The contracts currently in place for teachers and administrative staff have $213,500 in wage increases built into them, according to Loock.
Increases on the step system for eligible employees will result in an additional $338,400 in wages.
As a result of increased wages, the school district must pay an additional $43,600 in Federal Insurance Contributions Act tax, which pays for Social Security and Medicare.
The rising cost of employee benefits will result in the district paying $385,000 more next year.
An agreement offered to teachers a few years ago as an incentive for early retirement will result in a onetime cost of $241,500 next year.
The district must honor its agreement to pay these retirees for their accumulated sick days. The employees had previously agreed to delay payment.
Tuition costs to send special education students outside the district to receive services Oxford can’t provide will add another $153,400 to the budget.
Operations costs such as repairs and maintenance are expected to increase by $40,000 while the cost of supplies (custodial, transportation, etc.) goes up by $40,000 and diesel fuel by $35,000.

Proposed 2007-08 school budget highlights
New revenues
Facility rentals ? $50,000
Pay to Participate (sports) ?$24,000
Special Education County Taxes ? $375,000
Total ? $449,000

Budget Reductions (non-staff)
Energy Conservation ? $60,000
Utility Purchases (Natural Gas) ? $50,000
International Academy Tuition ? $20,000
Contracted Staff Savings ? $69,000
Frameworks ? $28,000
Decrease in Retirement Costs ? $171,500
Total ? $398,500

Budget Reductions (staff)
Teacher Retirements (10) ? $395,000
Paraprofessionals (4.25) ? $75,000
Elementary Media Specialist (1) ? $100,000
Central Maintenance Services (2) ? $50,000
Special Education Staff (0.8) ? $44,000
Elementary Teachers (1.5) ? $82,500
Total ? $746,500

Budget Increases
High School Teachers (0.6) ? $33,000
One-on-one Paraprofessionals (1.5) ? $23,800
Negotiated Wage Increases ? $213,500
Steps of Eligible Staff ? $338,400
FICA Costs ? $43,600
Employee Benefits ? $385,000
Prior-year Teacher Early Retirements ? $241,500
Repairs and Maintenance ? $40,000
PowerSchool Loan ? $27,000
Special Education Costs ? $153,400
Supplies (custodial, transportation, etc.) ? $40,000
Diesel Fuel ? $35,000
Total ? $1,592,200