Dearborn School Budget Cuts Will be Decided in June

Dearborn Public Schools administrators outlined a challenging budget at their May 23 study session–but employees, parents and other interested individuals will have to wait until June 13 to find out what will be cut as officials try to abate a $3 million deficit.

Bob Cipriano, the director of business services for the district, said his staff has been working on several proposals, and that no layoffs were expected as a result of the budget woes. Program cuts, however, could result in a loss of personnel.

“We’re looking at a lot of things,” he said, adding that the district would also not close any facilities.

The budget that will be up for a vote next month will be $161 million for the $18,500-student district, unless changes occur at the state level, Cipriano said.

That deficit—which was once $18 million until the district with the Dearborn Federation of Teachers earlier this month–could be reduced further pending state budget approval. A would cut less than $100 per-pupil to Michigan schools–instead of the originally proposed $300. Dearborn schools could also benefit if the district meets the "best practices" requirements to collect extra funds to be offered to Michigan districts.

One hundred dollars of that funding would be placed in the general fund, and the other $100 would go toward reducing retirement costs, according to the plan put forth by Gov. Rick Snyder last week. If the district can collect the dollars, it would reduce per-pupil cuts in Dearborn to $1,000 per student from $1,200, according to the governor's numbers.

Dearborn Supt. Brian Whiston said it remains to be seen whether the district is eligible for the increase in funds because health care costs and how insurance is administered are part of the state’s requirements.

“There is a provision that all employees must pay a certain percentage of their own health care, and we can’t meet that,” he said, referring to a pending bill that would require all state and municipal workers to pay at least 20 percent of their health insurance premiums. “Also, we have to administer the insurance policy, and we just transferred teacher health care to the (Dearborn Federation of Teachers) union. So there are legal questions.”

As part of the schools’ labor agreement with the district, the school district will provide a $977 stipend per employee, per month, for health care–meaning that the union must find ways to make the plan work for its members over the life of the contract. The benefit to the district is that the costs are fixed for the life of the contract.

School Board President James Schoolmaster praised state Rep. George Darany (D-Dearborn) for keeping officials abreast of what is happening at the state level, and for advocating for the schools. “He is working for us every day in every way,” Schoolmaster said.