Brandon Twp.- The Brandon School District may receive $600,000 in federal stimulus money this year, but the funds won’t solve a looming budget crisis.
School officials are facing a list of unknowns as they plan to approve a budget following a public hearing planned for 6 p.m., June 8, in the Board of Education room, 1025 S. Ortonville Road. Superintendent Lorrie McMahon is expecting to receive $200,000 in Title I funds as well as $400,000 from the federal stimulus package. However, there are strings attached. The Title I funds can only be used at Oakwood Elementary, the sole district building that qualifies based on the number of economically disadvantaged students, and the funds can’t be used to pay for teachers or programs that already exist. The $400,000 expected from the federal stimulus package also has limitations? it must be used for special education.
‘Both these monies will help the budget, but they won’t save us from problems because of the restrictions,? said McMahon. ‘They don’t remove concerns about declining enrollment and declining dollars from the state. We will be tightening up the budget and making reductions.?
Some reductions have already begun. A sixth grade teacher at Brandon Fletcher Intermediate School has retired and will not be replaced, a counselor at the high school will be moved to a position at BFIS that has been open since January, and a high school music instructor, with the district for one year, has been laid off.
Other plans for saving money including reducing building use during non-school hours to save energy and custodial costs. Other possible cuts include paraprofessionals, the school liaison officer, a previously planned bus purchase, overtime, and wages for employees.
The school board is looking at a budget shortfall of about $1,113,743 in 2009, with expenses of $31,484,302, outpacing projected revenue of $30,370,559.
In a worst case scenario, in 2010, the board could be facing $3,119,471 in deficits including the prior deficit, less revenue, and projected increases in expenses including inflation (3 percent); contractual salary steps (3 percent); retirement (.04 percent); energy costs (10 percent); and health costs (8 percent).
During a board study session May 18, Executive Director of Fiscal Affairs Jamie Cowan said the current fiscal year has been impacted by the district’s pay-to-play program, which has fallen short of revenue expectations. Board President Beth Nuccio said the fee was lowered because the board felt it was a hardship and would result in fewer participants.
Cowan urged the board to revisit the issue.
‘Pay-to-play is not sufficient to cover expenses,? she said.
‘I think you should strongly consider looking into this. It has caused an unexpected drain on the general fund.?