By Meg Peters
Review Staff Writer
In an attempt to balance the budget, which has a $1.3 million shortfall, the Lake Orion School Board of Education announced plans to layoff 14 teachers for the 2015-16 year.
This action will reduce ‘only half the problem,? Assistant Superintendent of Human Resources Bill Putney said.
Action was taken at the regular school board meeting Wednesday, April 29, and letters were delivered to the nine elementary teachers, three high school teachers and middle school teacher the following day.
The 2015-16 budget projection accounts for 11 of the 14 positions, however, guaranteeing three teachers to be re-staffed with certainty.
‘At this point for next year we laid off 14 to give us a little more flexibility at the elementary level,? Putney said.
‘If no reductions were made in projected’expenses based on anticipated revenue, then we would be in deficit. That is not going to happen,? Superintendent Marion Ginopolis said.
The budget must be adjusted before June 30.
Once staffing at the elementary level is determined, and the district has a better grasp of next year’s enrollment, Ginopolis hopes to bring back as many teachers as possible.
The 11-teacher reduction restores about $600,000 to the budget. Additionally, two family school coordinators, and one secretarial position were eliminated for the following year, saving an additional $150,000 in reductions.
Total non-teacher layoffs must exceed $300,000, Putney said.
The history
In 2014, the district laid off 11 teachers to help cover a $1.5 million deficit, of which six were called back. In 2013, 26 teachers got the slip to curb an almost $4.2 million deficit.
‘As of today, all of those (26) positions have either been recalled or have taken positions elsewhere,? Putney said.
While three teachers will be called back with certainty for next year, additional callbacks require more enrollment information, student population data in the elementary levels, and a finalized budget from the state.
Current cash flow
At the close of March the district’s general fund contained about $5.6 million of the $78 million budget. Equity will increase to about $7million at the close of the current fiscal year.
‘These cash balance figures are based on this year’s operations and fluctuate mainly based on the number of payrolls per month. ‘Some months have three, most have two pays in them,? Assistant Superintendent of Business and Finance John Fitzgerald said.
The District is also expecting about $11 million in two state aid payments attributable to fiscal year 2015, however it is already wrapped up into this year’s budget.
In a different light, the governor’s proposed budget cuts $25 per student of operational funds and another $26 in At-Risk funds.
‘I’m hoping this gets changed,? Fitzgerald said.
More options
Even after teacher layoffs, the district still must create $400,000 in reductions by July 1, the start of the next fiscal year.
The Schools of Choice program, which invites out-of-district students to enroll at Lake Orion, is one source of additional money.
SOC could bring in a total of 106 students, or about $800,000 in school aid fund. To play it safe, the district budgeted for 70 of the 106 students, which would offset a predicted 60 resident-student loss. A net gain of 10 students would bring the district an additional $75,000, according to a predicted $7,500 foundation allowance per student. The SOC enrollment window closes May 12.
But, it won’t offset everything.
‘We are meeting with each of our employee groups to negotiate what else we can do to trim budgets,? Putney said.
By late June more information will be available regarding negotiations between the district’s American Federation of State, County & Municipal Employees (AFSCME), the Lake Orion Education Association (LOEA), at-will employees and the secretarial group.
‘We’ve been blessed with the willingness of our groups to help us,? he added.
LOEA President Jeff Faber encourages taxpayers and supporters to continue pushing Governor Rick Snyder, and local elected officials Sen. Jim Marleau and Rep. Brad Jacobsen, to step up their efforts in protecting the district’s future funding.
‘Many thanks to the school board and administrators for their thoughtfulness and compassion for our affected employees,? he said. ‘I truly appreciate the efforts that they continually make advocating for our community school district.?
The light at the end
If any good news can come from the teacher reduction, it is that the curriculum won’t be reduced, it will be increased.
‘That’s one of the significant, most important things, that even as awful and ugly as it is, will still keep the instructional program in tact for Lake Orion Schools, and that’s essential,? Putney said.
In addition to maintaining the current instructional program, the district is able to add a $215,000 world language program for all sixth graders next year.
The goal will be to extend the world language program to all grades when the funds are available.