During the last several school board meetings, school officials were often met with ‘No’s? and snickering from the audience while the board discussed next year’s budget.
Not last week.
At the March 24 meeting, the audience burst into applause and even cheers while boardmembers discussed putting all the budget puzzle pieces back in the box, shaking it up and tossing them back on the table.
At the end of the meeting, the group’s finance committee ? made of Boardmembers Jim Weidman, Janet Wolverton and Bob Gritzinger ? left with instructions to completely revamp the administration’s budget recommendation by being less conservative in their predictions and not cutting programming.
Mary Jo Burchart’s advice to the finance committee was echoed by other boardmembers when she said, ‘I really don’t want to cut programming for kids. If there is a way ? any way, I don’t care what way ? that’s what I want to do.?
According to the board, the administration’s assumptions ? or ‘crystal ball? predictions, a term coined by Assistant Superintendent Jillynn Keppler ? were too conservative.
Those predictions included a $300 reduction in foundation allowance (per student funding from the state) for the coming year, with a higher cut meaning more items sliced from the budget. The administration’s recommendation also kept fund balance (‘rainy day funds?) at 15 percent of the district’s yearly expenditures.
‘Certainly in the past, the philosophy was to be as conservative as possible,? said Burchart of the district’s predicted foundation allowance cuts, ‘but more recently we have made a concerted effort to get things more in line because it has been a frustration on our part, as well as everyone else’s, when we make cuts for the next school year and at the end of this school year we’re putting money into fund equity. It wasn’t the intent ? it’s how it played out.?
That’s why Board President Bill Walters says he proposed using a figure closer to $275 when predicting foundation allowance cuts instead of a ‘conservative? $300.
Boardmembers like Bob Gritzinger, Janet Wolverton and Tiffany Weber-Phillips said they’d consider an even lower number. According to Keppler, a $25 cut per student is around a $200,000 hit for Lake Orion Community Schools.
Wolverton said she’d go as low as $250, noting ‘I think it would behoove us to start at a low number, and for every $200,000 have a back-up plan, a tiered plan, and start to plan for any number between $250 and $400.?
‘I certainly don’t want to be putting money away at the end of the year. You’ve heard about the trust level in the community,? said Gritzinger, who preferred $268.
As for fund balance’s spot in the puzzle, Keppler said she still recommends keeping 15 percent, but noted a 12 percent level kept the district from having to borrow in the past.
‘Somewhere right in there ? that’s our tipping point. If we’re looking at having to borrow even half of what our fund balance would be, you get into the millions pretty quickly and we’re talking about $50,000 [in interest] per million. That’s where we want to be careful,? she said.
Wolverton said she’s not a fan of borrowing and would be ‘ok? with keeping fund balance at 12 percent.
‘But if it meant saving a program, I could be persuaded that way, I could go down to 10,? she said.
Gritzinger elicited applause and cheers from the audience when he said, ‘The reason we have the money [in fund balance] is to maintain the programs as long as you possibly can, rather than maintaining a savings account as long as you possibly can.?
When discussion turned to cutting staff salaries and benefits, Wolverton got applause for suggesting a ‘tiered? rate, with top salaries taking bigger cuts.
‘I’m not sure I agree with that philosophy,? she said of cutting the same percentage for all staff. ‘I’m not sure that the higher salaries shouldn’t have a tiered percentage. I’m not sure that some of our collaborative groups ? who have made concessions and have worked with us and make a lesser amount ? should take the same rate as everybody. I’m not sure that I’m comfortable taking a blanket percentage across the board with so many different salaries.?
The board’s finance committee is expected to present budget reduction options at the board’s next meeting, April 14. According to school officials, any budgetary decisions affecting union staff have to be made before the end of April.