Not too long ago, administrators were warning us tough financial times were ahead for the school district. That time came sooner than expected.
State officials have already announced that more than $130 million will have to be cut from the school aid budget. Much of this aid depends on the state’s collection of sales tax which has taken a major hit due to the slow economy.
According to LO School Superintendent Dr. Craig Younkman, the school district will lose close to $400,000 in its per pupil payments and that “could double before the year is done.”
Eighty percent of the district’s revenues rely on state funding.
At the Feb. 19 school board meeting, school board members made public $392,163 of probable reductions in the current budget and $3,946,646 in possible cuts for the 2004 school year.
And more cutbacks may be coming says LO Financial Director Jillynn Keppler. “Although Granholm said there will be no more reductions this year, our lobbyists are telling us otherwise,” she added.
If the state cuts further, Orion officials may have to chop another $1.5 million from next year’s budget and they may not know the true amount until September.
LO School Board President Leeann Bartley called the state’s uncertainties “frustrating.” To add to the funding problems, Bartley said all of the school district’s contracts are up for negotiation this year.
School board member Bob Gritzinger pointed out Orion was lucky in one respect. “Many districts are just starting this (reductions). We started working on it in December.”
Board members said deciding on what cuts to make wasn’t easy. They looked at approximately 175 suggestions made by school district staff and the public.
“A lot of things weren’t black and white,” board member Lori Penman said.
The biggest reduction in this year’s budget will be in the maintenance and operations budget. The reduction amount is $273,000 — the majority from savings in utilities. Other reductions will come out of the transportation (purchased services and parts), technology (hardware and software purchases), computer department (hardware and software purchases).
The board office’s receptionist will be eliminated and the work hours of the high school parking lot attendant will be cut in half.
Offering several groups of administrators a severance package similar to the one given to teachers this past year ($65,000 paid out over an eight year period) is a major component of the 2004 budget.
Employees, if eligible, who could take advantage of this package include principals, assistant principals, athletic director, director of departments such as transportation, buildings and grounds, food service, computers, human resources, technology.
Administrators in the central office aren’t being offered this severance deal. EPC, the same company that handled the teacher’s package, is supervising this one.
The company has estimated that five people will probably take advantage of this package. At least two of those would have to be in positions that won’t be replaced or the offer will be withdrawn.
Overall savings could be $545,000.
Buying out high level salaried teachers will save the school district $748,500.
The superintendent and assistant superintendents have offered to donate back to the school district their 2004 salary increases ($10,600).
Members of the union will be hit hard with layoffs. Twenty five positions (custodians, paraeducators, staff assistants) will be eliminated.
“We took the hardest cuts,” Gail Sornson, union president said.
Here’s an incomplete list of other proposed changes.
n Reducing the athletic budget ($70,000)
n Dropping 5th grade instrumental music ($45,588)
n Community Services program to become self-supporting ($136,118)
n Pool fee increases ($3,000)
n 10 percent across the board cut to all non-employee budget lines ($600,000)
n Phasing out the OSMTech program ($12,000)
n Reduce budget and transportation at the nature center ($40,000)
n Eliminate Headstart program transportation ($40,000)
n Consolidate mail and service delivery into one position ($30,588).
n Reduce summer help in the computer department ($22,500)
At the school board meeting, current students and parents asked board members to reconsider phasing out the school district’s participation in the OSMTech program.
No freshman will attend the school in Clarkston next year.
Students said that going to the school is an inspiration for math and science students and they are able to learn problem solving skills. They described OSMTech as a “unique atmosphere.”
“I know $12,000 doesn’t look like much, but that’s because we’re phasing it out,” Bartley said. “The following year we’ll save $24,000 and so on. We could have just yanked them (students) out of there.”
According to LO Assistant Superintendent Dave Beiter, Lake Orion High School’s math and science courses are now matched up to OSMTech’s.
“When it was implemented, OSMTech was designed to set an example of instruction. The real mission now is to instill that back into the high school. We can offer comparable programs at LOHS,” Dr. Younkman said.