By Meg Peters
Review Co-Editor
A letter sent to Lake Orion School District families on December 11 informed them of the district’s nearly $1.9 million deficit for the current school year.
Declining enrollment, including a decrease in 80 full time students this year and more than 600 in the past five years, is the main source for the revenue loss.
The deficit, if left unaccounted for, could increase to $5 million for the following 2016-2017 fiscal year.
But, the district has a plan.
To combat the mid-term shortfall, the LOCS school board will be discussing targeted budget reductions in order to maintain a 9.8 percent fund balance of the total budget in the general fund.
Parents and community members are invited to the public budget meeting on December 21 at 6 p.m.’at the Orion Center, 1335 Joslyn Rd. The meeting, which is expected to bring many members of the community, will also be televised on Orion Neighborhood Television’s Public Education Access Channel, Comcast channel 22.
‘So the question to the board is, should we make mid-year cuts?? Superintendent Marion Ginopolis said.
These could include any major operational and instructional reductions. Specific budget cuts have not been officially confirmed.
Part of the meeting will assess recommendations from the school board’s advisory committee, the Long Range Planning Committee, which was established this summer.
The committee was formed to look at both short-term and long-term restructuring for the district, and will make several recommendations’next Monday.
‘My preference is to look at what the Long Range Planning Committee is recommending, and where we are headed in the big picture, and then make the reductions. But there’s no question, we have to reduce. We cannot operate the district and maintain the outstanding programs with less money,? Ginopolis said.
The $1.9 million break-down
In June, when the board adopted the preliminary budget, they anticipated more enrollment.
The district’s proposed budget for the 2015-16 school year reflected a gain of 80 students, the combination of 140 Schools of Choice students it predicted, offset by a net loss of 60 resident area students.
But, enrollment in August didn’t match those predictions.
Because the district lost a total of 180 full time students, and gained 180 SOC students the result was neutral, however, the loss became what the district thought it would gain’the 80 students.
After plugging in per-pupil funding figures, the enrollment shortfall affected the budget by -$750,000.
When state-funding numbers became more concrete this October, the shortfalls added became obvious.
A total of nearly $460,000 in unanticipated healthcare and retirement costs added to the $1.9 million pot.
Another biggie had to do with staffing.
The district had budgeted for a reduction of six staffing positions, which would have created about $650,000 in savings.? The positions could not be eliminated mainly because the district could not combine certain classes or splits it had anticipated.
The district also budgeted for a $449,000 operational deficit at the end of last year, which turned out to be about $772,000, or a $325,000 shortfall.
Throw in some other miscellaneous expenditure changes coming in at -$159,425, the deficit became a reality.
‘Projecting a budget is very difficult, especially in these times when revenue and enrollment are uncertain,? Ginopolis said. ‘If you really think about it, when you’re talking about an $80 million budget, $1.9 million is 2 percent that you’re off. That’s not bad.?
The district has always made its focus in providing the best educational programs available for students, ‘and we can do that. We just have to right-size ourselves.?
Or, resize.
In the interim, however, there is nowhere else to squeeze the lemon so to speak.
Since Ginopolis took office, around 2005 or 2006, the district has made about $30 million in major reductions.
With the general fund balance at 9.8 percent, only a few decimals away from the recommended balance of 10 percent, the district has little room for flexibility.
Reductions, according to the letter, will therefore be ‘significant changes to the district’s footprint and structure.?
Find out more’next Monday, at 6 p.m at the Orion Center, 1335 Joslyn Rd.
‘While this news is unsettling, I am very confident the changes to the district over the next few years will position Lake Orion Community Schools and its students for continued success for many years to come,? Ginopolis said.
Contact the office of the superintendent for additional information at?248-693-5400.