Editor's Note: Newsmakers '09 explores the stories that made headlines in northwestern Michigan in 2009. Past articles in this series can be read online at record-eagle.com/newsmakers.
TRAVERSE CITY -- Local school administrators have tried to stave off budget deficits all year; they've drawn down fund balances and cut as many extras as possible.
But they believe the 2010-11 school year could be worse if the state continues to reduce per-student amounts awarded to districts.
The state's Senate Fiscal Agency issued an economic outlook report last week that indicates per-student funding levels could be cut $215 next year. The figure, while higher than the $165 per student taken this year, is less than the $400 to $500 initially discussed.
Gov. Jennifer Granholm had said another $127 would be taken this month, but later suspended the plan. The Senate Fiscal Agency now reports that a midyear cut may not be necessary.
State lawmakers will participate in a revenue conference Jan. 11.
"In any other context, this is really, really bad news," said Paul Soma, chief financial officer for Traverse City Area Public Schools. "Somehow, that's coming across as good news."
Administrators place next year's shortfall between $6 million and $11 million, and Soma said the new information could mean a deficit near the lower end. This year's budget is about $90 million.
A $215-per-student cut would mean a loss of roughly $2.15 million in revenues for TCAPS.
With all the talk about next year, it's easy to forget that Traverse City school board members in March shaved about $2.4 million from the district's general fund.
But the scope almost certainly will be greater in 2010-11.
"I don't think there are a whole lot of really popular cuts in there, but I think it's a really good place to start," said Megan Crandall, a school board member and co-chairwoman of the district's recent budget committee. "We need to meet immediately."
Kingsley Area Schools reduced expenses by roughly $115,000, Superintendent Lynn Gullekson said, and ended a state-funded preschool program to use the money in the general fund.
This year's budget is about $12 million.
Gullekson also created focus groups to discuss additional budget cuts, with a recommendation due in February. The suggestions thus far total about $1 million.
"I don't think anybody thinks we can make all the reductions in a singular area," he said. "That's not something we think we can do and still operate."
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