Whether Oxford Schools? upcoming millage request passes or fails will mean the difference between approximately $600,000 and $1.3 million in budget cuts.
School officials last week unveiled two plans calling for numerous cuts aimed at producing a balanced budget for 2005-06 ? one plan if the millage passes, one if it fails.
On May 3, school district voters will go to the polls to decide the fate of a two-year, 2.3549-mill increase on non-homestead property.
Non-homestead property includes businesses, commercial properties, second homes, vacation homes and rental properties. Excluded are principal residential and qualified agricultural properties.
Currently, the district is levying 15.6451 mills on non-homestead properties due to property tax rate rollbacks caused by the Headlee Amendment. State law allows districts to levy up to 18 mills for operating purposes.
The millage proposal is particularly important for the district considering it’s facing an anticipated budget shortfall or deficit of $3,493,937 for the next school year. Next year’s projected expenditures for the district total $36,211,712 while revenues total $32,717,775.
‘The bottom line is when the money coming in stays the same and the cost of doing business goes up you have a gap,? said Superintendent Virginia Brennan-Kyro.
Some of the largest expenditure increases contributing to this anticipated $3.5 million shortfall include an additional $705,305 for health insurance; a $984,171 increase in employee salaries due to contractual obligations; a $403,935 increase for the state-mandated retirement system for school employees; plus another $58,256 in gas increases to heat the district’s buildings.
Add to those increased expenditures a projected $712,000 in ‘lost? revenue due to the state’s false assumption the district consistently levies 18 mills on non-homestead property annually.
When the state allocates its per-pupil foundation grant money to the district, it assumes the maximum 18 mills is being levied every year, according to Assistant Superintendent Ron Franey.
But because of Headlee rollbacks this is not the case, resulting in a gap between what the state doles out and what’s actually being collected in non-homestead property taxes, Franey said.
For instance, for the 2004-05 school year, the state assumed the district was levying 18 mills on $262,159,442 worth of non-homestead property, resulting in a collection of $4,718,870 in taxes.
But in reality, 15.6451 mills was levied, resulting in an actual tax collection of $4,101,511. The state calculated the district’s per-pupil foundation grant based on the 18-mill collection figure, resulting in a $617,359 funding shortfall for 2004-05.
Franey explained that when the state touts the fact Oxford School received $6,958 per student in funding in 2004-05, that figure is actually a combination of state money and non-homestead tax dollars.
When the full 18 mills is not levied or collected by the district, the difference is not made up by an increase in state funds, so that money is ‘lost,? Franey said.
That loss is too much for Oxford to continue absorbing, according to school officials.
To help close the impending $3.5 million budgetary gap, the district is expecting an additional $470,800 from the enrollment of 90 new students plus another $175 per pupil from the state, resulting in another $715,575 for the district.
Gov. Jennifer Granholm promised schools the additional $175 per pupil, however, its has not been approved by the state Legislature.
‘We’re hoping it’s true,? said Brennan-Kyro of the governor’s funding promise. ‘It’s not law yet, but we’re counting on it.?
Locally, the district is planning to use $675,000 from its fund equity or fund balance to help offset the shortfall.
However, Brennan-Kyro said it’s ‘not a good systemic practice to use (fund equity) for operational costs.? She said the money is really meant to be a ‘rainy day fund? for the district to deal with emergencies such as a collapsed roof in need of repair or a broken building boiler that needs replacement.
During the 2004-05 school year, Brennan-Kyro said the district had to use $1,044,893 from its $4,480,172 fund equity to balance the budget.
As of June 30, the fund balance for start of the 2005-06 school year will be $3,435,279, but if the $675,000 is used that amount will fall to $2,760,279.
This is not a lot to hold in reserve considering the district’s approximately $745,000 payroll (paid out every other week) could ‘wipe it out? in less than two months, according to Gail Enekes, of the Central Office Business Department.
In addition to using anticipated revenue increases from the state and local fund equity dollars, the district is also asking voters to approve the non-homestead millage increase, which will result in approximately $700,000 of additional revenue.
But all these revenue sources still won’t be enough to close the gap.
‘For four years we’ve said this is our shortfall, but every year I’ve been able to close the gap,? Brennan-yro said. ‘But this year the gap is too big and I can’t close it without these cuts.?
That’s why school officials have proposed two plans calling for significant budget cuts to balance out the rest of the projected $3.5 million deficit.
Brennan-Kyro said these cuts are based on her two philosophies ? ‘No sacred cows, no sacrificial lambs? and ‘Keep cuts as far away from the classroom as possible.?
The first plan proposes $592,562 in cuts to the district budget if the millage passes. Brennan-Kyro said this plan represents the ‘best case scenario.?
Plan A calls for the following ?
n A 10 percent reduction in district supplies.
n A reduction in supplies and materials for operations and maintenance.
n The combination of the special education director and Crossroads for Youth education administrator into one position. Jerry Oermann, the current special education director, would divide his time between the two jobs. The current Crossroads administrator, Dr. Glenda Williams, would replace the retiring Patricia Richardson and become an assistant principal at Oxford High School.
n Central Office Business Department employee Gail Enekes is retiring in October after nearly 30 years. Rather than replace her, Assistant Superintendent Ron Franey would take on her duties.
n The director of communications position, currently held by Edie Paradowski, would be eliminated.
n The Athletics Department would face a reduction in supplies along with the elimination of Boys? and Girls? Varsity and Junior Varsity Golf (see story on page 1) plus the elimination of middle school cross country.
n The elimination of one computer technician for the district.
n The elimination of between five and seven of the district’s paraprofessionals. Brennan-Kyro said these cuts will ‘directly? affect students because para-pros, who are primarily at the elementary level, work with students in small groups and on a ‘one-on-one? basis. ‘They are very valuable,? she said.
n A reduction in clubs and sponsors at all three levels of schools: Elementary ? All extra curricular clubs, plus science and art fairs; Middle School ? Band co-director, newspaper, Spanish Club, Stand, Art Club, Computer Club, Math Club, Science Fair; High School ? Environmental Club, Equestrian Club, Math Club, SADD (Students Against Destructive Decisions), Spanish Club, Writer’s Club, Disc Golf, Academic Team.
Brennan-Kyro explained she asked the principal of each school to list all their clubs, the number of students who participate in each and the costs associated with them. The principals, along with their staffs, were then asked to prioritize the clubs on those lists according to participation and relative impact, she said.
n Increased class sizes ? Brennan-Kyro said aside from employing three new teachers to replace three retiring veterans, the district is ‘holding the line on new hires.? Which means schools will be staffed with the same number of teachers, despite a projected enrollment increase of 90 students. Brennan-Kyro noted the high school alone is gaining 36 new students next year.
The second plan proposes $1,292,562 in cuts to the district budget if the millage fails.
Plan B calls for the same cuts outlined in Plan A with increased reductions to some areas already mentioned (such as paraprofessionals, computer technicians, school clubs, etc.) plus additional cuts in other areas.
Plan B calls for the following ?
n The elimination of the executive director of curriculum position, currently held by Karen Eckert, who’s retiring at the end of the year. Brenna-Kyro said Eckert’s duties would be divided up between herself and the building principals in order to ‘limp by for one year.?
n The elimination of one ‘receptionist-type? position from the central office support staff.
n Elimination of freshman sports ? basketball, baseball, softball, football and volleyball.
Brennan-Kyro explained it’s better to cut the freshman sports program than middle school sports program because other districts who have eliminated the latter find that by the time students get to high school ‘they’re really out of shape? and it adversely affects their junior varsity and varsity sports.
She said the idea is to keep the kids ‘engaged? in the sixth through eighth grades so when they get to the high school as freshmen, those with adequate skills can still play junior varsity and varsity sports.
Freshmen who ‘sit out? for a year ? as opposed to three years in middle school ? will stay in shape thanks to the weight room, swimming pool, running and general conditioning, Brennan-Kyro said.
n Elimination of a school counselor at either the middle school or high school levels, or a combination of the two. This will be done through ‘attrition,? said Brennan-Kyro, noting longtime high school counselor Lew Wilson is retiring at the end of the school year.
n Elimination of a media specialist somewhere between kindergarten and 12th grade.
n Elimination of three out of 4? elementary reading teachers.
n Elimination of two computer technicians.
n Elimination of between 10 and 12 of the district’s 61 paraprofessionals.
n Converting kindergarten from half-day classes, five days a week to ‘all day, every other day? classes. Elimination of the midday transportation would save ‘quite a bit of money,? Brennan-Kyro said.
n Further reductions in clubs and sponsors. All the clubs included in Plan A plus: Middle School ? Drama Club; High School ? Adventure Club, Auto Club, DECA Club, Drama Club and Dance.