They still have ‘soft numbers? and not enough details, but Clarkston school officials have adopted a ‘conceptual plan? to save $1.9 million in the 2004-2005 budget.
The Monday school board vote was not unanimous, as Trustee Tony Miller opposed ‘pay-to-participate? athletics and a yet-to-be-finalized proposal to privatize custodial services.
The success of the plan will depend, in part, on getting at least 20 top level teachers to agree to a severance plan intended to cut personnel costs.
The administrative package was a revision of plans floated at a Jan. 19 workshop, at which officials said there could be a $2.5 million deficit in the 2004-2005 budget.
With state aid and enrollment uncertainties, officials are assuming no increase in the per pupil ‘foundation grant? and an enrollment increase of 100 for next school year.
The board has already endorsed use of fund equity to balance the current year’s school budget after state aid cuts, lower-than-projected enrollment and higher-than-projected expenses. In the 2004-2005 year, officials want to protect enough fund equity to ensure operational funds for new facilities scheduled to open in fall 2005 and to prevent fall cashflow borrowing.
In the former category, officials changed their estimate from $1.8 million to $1.4 million. Also changed was an estimate of the effective reduction of 7.1 teachers from the K-12 program down to ‘about three? if the severance package proves successful.
Most of the board debate centered on a proposal for a flat annual fee of $200 per high school athlete and $150 per middle school athlete in 2004-2005. Athletic Director Dan Fife said it is a better option than cutting any individual sport or any level of sports (such as freshman sports or middle school sports).
‘We feel this is the best way to not lose programs or kids,? Fife said.
Miller questioned why the athletic budget was being called upon to find $250,000 is savings, and Deputy Superintendent Dave Reschke said it represents about 10 percent of the overall reduction package.
‘There was no science to it,? Reschke said. ‘That was just the number picked.?
With the athletic budget being cut the past two years, and with the spectre of continued fund-raising to cover already-cut items such as equipment purchases, Miller said more cuts are unfair.
‘We have money in the bank,? Miller said. ‘I think there could be a better way to do this without pushing these budget cuts.?
Miller said there should be a more detailed investigation of the district budget, including ‘company cars and cell phones,? to seek other savings.
‘If we ever had any frivolous costs, they were gone a long time ago,? board Secretary Steve Hyer responded.
As he did at the Jan. 19 workshop, Miller again asked about pay freezes for coaches and other personnel. Administrators said some employees are concerned about retirement benefits, which are computed based on the progression of their pay scales.
‘We’ve already studied salaries,? said John Diliegghio, executive director for middle and high school education. ‘It’s a contract, and part of our master agreement.?
Fife stressed that coaches will work hard to establish scholarship programs to help athletes in financial need.
‘This is not a happy time for Clarkston athletics, but our coaches will find a way to make it happen,? he said. ‘We will make sure these kids will be taken care of. We don’t want kids turned away.?
‘This is temporary,? board President Karen Foyteck said, promising to remove the pay requirement as soon as circumstances warrant. ‘I didn’t like doing it in 1989 and I don’t like doing it in 2004, [but] we have to make plans now.?
‘I don’t want it thought that I don’t believe in academics,? Miller said. ‘I just want to know that the cuts are even and justified.?
Trustee John Koval noted the lack of promised details on the real cost of running the overall athletic program.
‘I’m not convinced that the flat $200 fee is the way to go,? Koval said. ‘I need the rest of that information complete to make a decision on that.?
Others said the pay-to-participate fee will only help cover the expenses currently in the formal athletic budget, and donations from parents, booster groups and fund-raisers will still be needed. Koval eventually voted in favor of the overall package.
Miller also criticized the ongoing budget woes in light of new facilities under construction.
‘We’re adding bricks and mortar to help our kids, but we don’t have enough money to pay for what we have now,? he said. ‘That scares me.?
Board Vice President Ronald Sullivan said the decision to build new buildings came from a voter-approved bond issue. ‘We listened to the community,? he said.
‘Regardless of what we do, we have to house 8,000 kids,? Superintendent Al Roberts said.
Bruce Beamer, executive director for business and financial services, explained the proposed severance plan, developed in-house after consultation with financial planning firms and the district legal counsel.
Teachers, administrators and support staff will be offered the one-time severance package, but all offers will be withdrawn if fewer than 20 teachers accept it. In the teaching category, the offer will be made only to those in the top step of the wage scale.
If at least 20 teachers agree to resign at the end of this school year, they will receive $30,000 in January 2005 and $15,000 in January 2006. The same payment will be offered to administrators, while support staff would receive payments equal to about 73 percent of their base salary in 2005 and about 36 percent in 2006.
If at least 30 teachers accept the offer, the buyout price will be higher, Beamer said.
‘Teachers are getting more dollars, because there’s a bigger variance in their scale,? he said.
If the plan attracts enough participants, Beamer estimates first-year savings to the district of at least $500,000.
Employees have until April 8 to accept the offer, after which the administration will have to decide whether layoffs will be in order for fall 2004.
‘We know we’re going to lose some great experience,? Foyteck said, ‘but that’s part of the package.?
Roberts defended the possibility of ‘outsourcing? custodial services, but said he will not propose it unless it can achieve savings of at least $200,000.
‘We still need to work on that. I don’t see how we can do that without losing positions,? he said. ‘We’re not ready to set this in stone.?
Nonetheless, he asked the board to approve the move as part of the ‘conceptual plan.?
‘We need a completed agreement so we can move forward,? he said.
Koval also asked reconsideration of the proposal to phase out participation in the Oakland Science Math and Technology Academy. By not sending freshman to the cooperative program next year, the district will be able to hold on to a bigger share of those student’s foundation grant.
‘If we pull out of that, I think that program will be gone,? Koval said, noting the financial challenges currently faced by OSMTech.
Roberts sympathized, but said the administration could have proposed a total pullout. He also said other districts have contributed to the problem.
‘This program was more significant when it had five partners,? he said, noting the withdrawal of Waterford from the OSMTech consortium several years ago. The Lake Orion district has also decided not to send freshmen to the program next year.
Trustee Sheila Hughes voiced concern about proposed cuts in textbook purchases. Diliegghio said staff would attempt to accomplish that with alternative plans or with a delay of new curriculum.
‘I don’t want a child without a textbook,? Hughes said.
‘None of us likes anything we’re looking at here,? Sullivan said, but administrators said they are simply doing their best in another year of financial challenges.
‘We’re getting pretty good at this,? Reschke said, ‘and it’s not necessarily a good thing to get good at.?