Lake Orion schools are setting their sights on the long-reaching arms of the economic recession.
‘We’re going to have to change the way we look at things,? said Assistant Superintendent of Administrative Services Jillynn Keppler.
Since schools receive funding from the state through property and income tax, the economy’s decline is seriously impacting school budgets across the country and in Michigan especially.
Right now, Orion’s district is using $2.5 million from fund balance to operate, meaning its operating at a deficit. Next year it’s expecting to use another $4.2 million, making the two-year loss $6.7 million.
‘The important part to note is that we’re going to have to tighten things up again. The biggest fear is that there isn’t any relief in sight,? said Keppler.
What’s even more worrisome is the stimulus funds are only available this year. They’re currently evening out the loss from state funding. Next year, though, is a different story. The district stands to lose several hundred thousand dollars.
‘We’re going to take a full broadside hit financially,? said Boardmember Jim Weidman.
Logically, funding for some school programs will either be cut down or nixed from the budget completely, but it’s uncertain where the blows will fall.
‘There are too many unknowns,? said Superintendent Ken Gutman about cuts in programming. ‘This time of year we write in pencil with a big eraser because we don’t have all the information.?
In determining the budget, board members and administrators will have to consider more potential state funding cuts, rising utility costs, staff contracts, many of which are expiring this year, and a forecasted drop in student numbers and the money they bring in.
Recently, the district utilized two consulting firms to estimate student enrollment over the next five years and the results are unnerving. The firms based numbers on Oakland County birthrates and student return rate from kindergarten to first grade and by 2013 they predicted a total loss of 265 students.
Lake Orion schools receives over $7,000 per student from the state.
‘If we don’t have more students and we don’t have more money, but our costs still go up, the money goes away very quickly,? Gutman said.
One route many districts opt to take is opening their schools to students from other districts utilizing a program called schools of choice. Oxford schools, for example, are open to ‘choicing? in students from other districts. They recently paid $25,000 to be included in a 30-minute ‘Best Schools in Michigan? infomercial on WXYZ-TV in an attempt to attract outside students. And at $7,500 per student in state funding, the investment could be easily returnable.
But Orion schools have steered clear from schools of choice. Under their current policy, students are allowed to leave but the district isn’t allowing any outside students in.
‘Lake Orion Community Schools is for the Lake Orion community. (We’ve) made a commitment to not open schools of choice,? Gutman said. He added one of the biggest reasons Orion is against bringing in outside students is the time and effort staff are forced to give in acclimating those students to a new curriculum. Some students also come in with disciplinary problems, so for now, the district deems schools of choice not worth the effort.
So where does that leave the budget?
‘We need to take it one step at a time and see where we’re going to be,? Keppler said.