Plante Moran’s Donna Hanson applauded Lake Orion School District for its fiscal responsibility.
‘As a result of good fiscal management plus containment efforts over the past several years, Lake Orion has been able to build a fund balance position that will give the district a better-than-some-others position to tackle some of these funding uncertainties,? she told the board at their Oct. 28 meeting.
‘Funding uncertainties? include a $2.3 million funding reduction for 2009 due to a $292-per-pupil cut in state aid. There’s also the potential for an additional $300-per-student cut in the spring, and $500 to $800 next fall, according to officials.
Currently, Lake Orion receives $8,203 per student from the state.
‘We’re being told from credible sources, both in legislature and in educational organizations, we could be looking at a reduction over the next year of $1,000 total,? said Superintendent Ken Gutman.
But while these cuts leave some districts reeling, Lake Orion could be in better shape.
‘Next year is what’s being referred to in the state of Michigan as a ‘budget cliff,?? said the superintendent. ‘So many districts will be, to put in laymen’s terms, bankrupt. We’re in a better position, but we’re not far behind.?
So what’s the district doing in preparation for the ‘cliff??
Asking you for ideas.
‘Right now in the process of seeking input from parents and what they think we should be doing to reduce our budget and be fiscally responsible, and also what they value,? Gutman said. ‘What do you value in your schools, what would you hate to see us part with??
Right now, the district is in the process of vetting a plan for early retirement incentives presented by Nick Coccia, a math teacher at Lake Orion High School.
According to Coccia, the district could save nearly $1.4 million per year if it retired 30 teachers with highest seniority.
But administrators say his idea and others might not be an option.
‘Still a lot of things the community is learning about. There are restrictions and requirements that we have that people aren’t necessarily aware of,? said Assistant Superintendent of Administrative Services Jillynn Keppler.
Because the district has fund balance to draw from, administrators say the district doesn’t have to make immediate, wide-spread cuts to balance their budget.
‘This is the best part of the worst situation: we don’t have to have a knee-jerk reaction like most districts,? Gutman said. ‘It was careful planning by the board and the administration to make sure that fund balance was maintained for a rainy day. It’s raining and it’s about to pour. Now is the time to use that fund balance for this year to make informed decisions about next fall.?
Gutman added the district won’t make any major adjustments until next fall.
‘We don’t have a preconceived notion of what’s going to be cut because we really do value community input,? said the superintendent. ‘We want to take their ideas, carefully put together some studies and really spend some time looking at them. We don’t want to overreact.?
Those with budget ideas are encouraged to visit www.lakeorion.k12.mi.us/budget.htm or send an email to budget@lakeorion.k12.mi.us.