Proposed Budget Would Pare Millions from School Coffers

Gov. Rock Snyder’s budget proposal to balance the state's budget was treated like a shot heard around the state by local school districts, including Dearborn Public Schools.

That’s because by the time officials at the 18,500-student district calculated all of the places the budget would be trimmed or cut, the tally came to about $14 million lost for the 2011-12 school year, according to the district’s estimates. In addition, the district will face $4.8 million in pension costs for the same year.

“We were told that (Snyder) was considering about $300 per student,” said Superintendent Brian Whiston. “But when the budget came out, it was so much more worse than we expected. It’s going to be a lot more per student for us when you consider all of the funding that will disappear.”

Funds targeted include not only per-pupil funding–the greatest source of revenue along with local property taxes– but also categorical dollars such as 20J funding, at-risk funding and bilingual education funding. All three affect Dearborn in big ways.

Bob Cipriano, the district’s director of business services, gave a presentation which informed the district how much the cuts would affect the district.

 According to his estimates, the cuts proposed by Snyder’s budget if approved by the state legislature as outlined last week, combined with increasing pension obligations, the impact would equal $18.8 million in the 2011-12 fiscal year, and $22.4 million the following year.

Budget by the Numbers

School Board Trustee Joseph Guido, after listening to Cipriano’s presentation Monday night, asked if the numbers represented the worst of what should be expected for the next two years.

“Is this a worse-case scenario for the district?” he asked.

Cipriano said the numbers are based on what was proposed by the governor, but added that there will be some uncertainty until a final budget is approved by the state legislature.

“(Snyder) has outlined a May 1 deadline for this, and we’re hopeful that they’ll meet that,” he said.

But even if the budget is passed as is, some on the board wondered what the fallout would be if the economy worsens over the short term.

“What if the economy grows, but we have a jobless recovery?” asked Trustee Mary Lane. “That might be good for the banks and business, but wouldn’t be good for us.”

Cipriano said the fact that the budget scraps the Michigan Business Tax, but puts into effect taxes in other areas, could affect the district’s bottom line.

“We get a lot of money from the Michigan business tax,” Cipriano said, adding that the district would be better able to inform the board of potential impacts once a final budget is approved.

Other trustees wondered if the cuts to specific funding cuts at the categorical level would mean programs that programs for students would be put on the block.

“Our at-risk funding is used for reading (supplemental instruction), and since reading is a priority for us, we would have to find money in the general fund,” said Whiston.

However, Whiston added that some programming may have to go.

After the meeting, School Board President James Schoolmaster said he thought the cuts were unfair.

“It’s like if you were expecting to be paid something, than you found out it would be half of that,” he said. “What are you supposed to do then?”

Whiston said the district will have a better idea of how the district will implement the cuts at its facilities once the contract with the 1,200 members of the Dearborn Federation of Teachers is settled, and once a final budget is approved.

By law, the district has to file a balanced budget for 2011-12 by June 30.