Ann Arbor school board expected to make final budget decision on Wednesday
Dealing with the 2011-12 budget has been a nerve-wracking experience for Ann Arbor school board trustees.
From initial projections to proposals from the state to proposed budget cuts, there have rarely been any easy choices for trustees while discussing the budget, which is expected to be finalized Wednesday.
The meeting will take place at 7 p.m. at the Ann Arbor District Library’s downtown branch.
School board president Deb Mexicotte said dealing with budget cuts is often like holding onto the edge of a cliff and slowly dropping down. However, she said dealing with this year’s budget has been more of a plunge.
“This is something our community has not really experienced before,” she said. “This is something we as trustees haven’t experienced before.
"We’re seeing a lot of disagreement and discussion around how much money do we really have and how much can we trust that money we have today will be there tomorrow. … The fear is deep.”
The district is looking to fill a budget deficit upwards of $15 million.
Among the potential cuts remaining in the budget are the elimination of 70 full-time teaching positions and the elimination of high school busing.
Those two cuts are the biggest points of contention for many school board members. Trustee Andy Thomas said he was comfortable district administrators have done the best they could given the situation, but is still concerned about the busing cut.
“I don’t think we have time to do it in a careful, thoughtful manner,” Thomas said. “We don’t have a good idea of who’s going to be affected by it and I don’t think we have explored what alternatives people have to busing in terms of getting to school. I’m particularly concerned about the impact it’s going to have on some of our most disadvantaged students.”
District administrators proposed a number of alternate cuts that would allow high school transportation to remain in the budget for next year at a meeting on Friday. Thomas said he will wait to see what is presented by administrators at Wednesday’s meeting before ultimately deciding on voting for the budget or proposing the school board push back the vote until the June 29 meeting. A final budget must be approved by June 30.
Trustee Christine Stead said there are a number of “moving parts” with the 2011-12 budget that she would like to see resolved before a vote.
She said she would like to see a summary of what the district is projecting to spend with new additions like hiring five principals and the Northwest Educational Assessment, which were not in the original budget.
Stead said she wants to see more work done on reducing class sizes, which are projected to rise across the district with the elimination of the 70 teacher positions.
“We don’t have much wiggle room anyway, but if we did I’d like to really think about what we’re doing in the classroom first,” she said.
Trustees are debating amongst themselves about the amount of reserve funds to use in this year’s budget.
Interim superintendent Robert Allen said the reserve fund, or rainy day fund, is expected to be at about $20 million by the end of the 2010-11 school year. It is board policy to have a reserve fund of about 15 percent of the district’s operating budget, which would be about $28 million. Allen is proposing using approximately $1.7 million in reserves for the 2011-12 budget.
Trustee Glenn Nelson said it is time for the district to use more of its reserve than proposed. He said he’s willing to use about $2.5 million in this year’s budget, about $800,000 more than originally proposed.
“Young people everywhere, but especially in Michigan, need all the help we can give them in terms of a good education,” he said. “That’s our job and to me to say that we should add to the reserves and add to the rainy day fund when … it’s not raining out there, we’re in monsoon season.”
Other trustees, like Stead, have said they believe the district needs to build its reserves for an expected $10 million to $14 million deficit next year.
Nelson said his thought process going into Wednesday’s meeting centers around using more reserve funds, lessening the cut to transportation and add whatever extra money is found into reducing the cut to the teaching positions.
He said he would like to see about 27 full-time teaching positions be saved from the proposed budget cuts. He said revenue enhancements of about $1 million, the expected $2.4 million in funding to help with retirement costs from the state and extra reserve funds would help lessen the cut to transportation and put those 27 jobs back into the budget.
“Given the amount of good news we’ve had since the proposed budget was developed, I don’t think we have to cut teachers or increase class size as much as the proposed budget indicates we have to,” he said.
Kyle Feldscher covers K-12 education for AnnArbor.com. He can be reached at kylefeldscher@annarbor.com or you can follow him on Twitter.
Comments
DagnyJ
Thu, Jun 9, 2011 : 11:39 a.m.
Close Community HS. Why do we allow this sacred cow to suck up resources when we are cutting vital services for the majority of students in the district? Oh, and PS: The three big high schools will have small enough enrollment to handle all of CHS's students without a hitch.
snapshot
Thu, Jun 9, 2011 : 4:25 a.m.
Economics 101, don't spend money you don't have. Economics 102, Don't lose track of your core business, classroom performance. Economics 103, Don't consider yourself first in fullfilling 101 and 102. Unions impede all of the above.
TC
Wed, Jun 8, 2011 : 5:06 p.m.
Remember, cuts like these are happening all over Michigan. In fact, A2 is better off than many other districts. We, as voters have decided that awarding tax cuts to business is more important than properly funding education. We made this choice when we elected republicans to power. This is what they do. We have nobody to blame for this but ourselves.
cette
Wed, Jun 8, 2011 : 2:59 p.m.
I think the pickup sites for bringing in kids is the best option for the high schoolers, especially if its a elementary school or middle school, someone can open up the building and let them stay in there while they wait for the bus to leave.
belboz
Wed, Jun 8, 2011 : 2:39 p.m.
It is time Ann Arbor put a big focus on reducing the number of schools. Elementary distribution is very inefficient. Compared to 1996, Elementary Enrollment has declined 5%. - 7650 down to 7300 In the last 5 years, Middle School enrollment has declined about 6% - 3750 to 3525 High School enrollment is going to follow a similar pattern in the coming years as the kids get older. It is time Ann Arbor realized it does not need 5 High Schools, that Sky Line was a GIGANTIC screw up. | Also, with 50 percent of the costs coming from Salaries, I hope that 50% of the savings comes from Salaries as well. There are still PLENTY of people out there waiting for teaching jobs. It is supply and demand - simple economics. Oh... But they don't teach that in School. My son is too busy taking SPANISH in 5th grade. Maybe if the schools taught the kids what a trade deficit was, about why it is important to support American companies, we'd be keeping more money in the U.S.and states would have the funds to keep the system rolling. Teachers are so good at explaining why THEIR jobs are important to these little one's. Perhaps they could explain why they expect the economy to work as they show up in their VW or Toyota... All of the hot button cuts are a strategic buildup to cut basic services to our kids so they can give the numerous reasons why they need a millages. Do YOUR job and cut the salaries, create a plan that efficiently uses our buildings and close up the waste. Just like any business..
TC
Wed, Jun 8, 2011 : 5:10 p.m.
Just so you know, we no longer do operating millages, haven't since Proposal A passed a long time ago. You're gonna need a new theory.
calmic
Wed, Jun 8, 2011 : 1:53 p.m.
Close down some schools with declining enrollment (such as Northside, which is in any event going down the toilet due to a horrible principal) and consolidate with other schools.
Basic Bob
Wed, Jun 8, 2011 : 4:47 p.m.
Redistricting is only an issue because they have redlined the district so effectively. Why would you care if you were being redistricted into a nicer school with more affluent parents and better teachers and principals? They have taken great effort to keep certain schools as pure as possible, while keeping other schools (Northside, Mitchell, Scarlett) across the tracks. If they want to improve any of these schools, all they need to do is redistrict some kids over from Montgomery Burns Park. The parents will take care of the rest.
local
Wed, Jun 8, 2011 : 2:13 p.m.
That would require redistricting and more busing for those kids being redistricted. I agree that should be an option, like everything else, I just think that takes time and planning. And once again, it is going to anger those living around Northside for example and we will be hearing about it like we are when it comes to busing.
eastsider2
Wed, Jun 8, 2011 : 1:33 p.m.
Spend more of the "rainy day" fund. It is definitely raining on the school district. If there is about $20 million in the fund and they want to make sure we have some to cover budget cuts for future years, why can't we use 2.5 million this year (leaving us with $17.5 million next year?) Even if we spent $2.5 million from the rainy day fund every year and never contributed to it, that gets you 8 years until the fund is at $0. I think we can spare the 2.5 today. Or am I missing something?
Greg Gunner
Wed, Jun 8, 2011 : 12:52 p.m.
Rick Snyder and his wealthy business cronies have a plan to increase their own wealth at the expense of our children and our public employees. I don't see many public school custodians, bus drivers, food service workers, teachers, teacher aides, fireman, police officers, and other public employees driving expensive cars, living in expensive homes, golfing all afternoon while others work, etc. The Republican agenda is perfect when you consider their motives. Students won't need much of an education when all the jobs are minimum wage jobs.
Basic Bob
Wed, Jun 8, 2011 : 4:34 p.m.
The problem is wealthy state government employees - university professors, teachers, city and county administrators. They work less, get paid more, and are set for life! All at the expense of our children's future. Just look at who's driving all the foreign luxury cars. It's certainly not your wealthy business types like Bill Ford.
a2person
Wed, Jun 8, 2011 : 2:31 p.m.
I disagree, Ken. The budget issues are self-imposed. There was enough money in the School Aide Fund to INCREASE per-pupil funding before Rick and his legislators changed the rules. And when you look at where Rick sends his kids to school, with individual attention and hands-on learning and all that is required to help grow the next generation of innovators and creators, it costs $18,000 per pupil per year. More than double what Rick wants to spend on the rest of us.
Ken Boyd
Wed, Jun 8, 2011 : 2:14 p.m.
Greg, your comments are not constuctive nor are they realistic. I can understand the frustration that many feel regarding this situation,but we are in a financial crisis and stern measures are needed. I have always felt that one of the biggest problems in public education is excessive admin. costs. Hopefully, the cost of admin. payroll is being closely monitored. The problem in the United States is not that we do not spend enough on education; the problem in the United States is that the money is not efficiently used. We must be smarter with the use of public money.
squidlover
Wed, Jun 8, 2011 : 12:19 p.m.
If it saves that many teaching positions, then yes, it is time to dig a little deeper into the reserve fund. Class sizes are too big already. Over the past couple of years, I've seen too many students who cannot keep up with the other students. Without a supportive home environment (for some of these students), more active in-class volunteers and the district's apprehension to hold back students, these students are just being filed through the system.
DonBee
Wed, Jun 8, 2011 : 12:04 p.m.
Teachers go bu bye, administrators get a pass. Busing goes bu bye, sports gets a pass. Setting up for a milage vote next year I wonder? Let's see how many parents we can make angry enough to vote for a milage increase per chance? The district over spends on administration by over $4 million a year. Sports another $3.2 million, sports facilities $800,000 plus. Then there are all the new consultants following the new administrators around - $100 an hour to copy and paste parent manuals? Really a good use of school funds? 3 Athletic Directors (not in the sports budget). Taking Special Education money to pay for the new behavior program in the schools? I would think the BOE would do a zero based budget, but they TRUST the administration.
jns131
Wed, Jun 8, 2011 : 1 p.m.
Don't forget about the custodians. They took a huge hit last year and are still reeling from it. I would not be surprised that when their contract comes up for renewal? They too will be privatized, if not sooner. Great comment though.
Lac Court Orilles
Wed, Jun 8, 2011 : 11:54 a.m.
Why aren't people as MAD as I am about the actions of Republicans Rick Olson, Randy Richardville, and Rick Snyder? They artificially caused all of this harm to a once excellent school system. I just don't understand why others are not up in arms and out in the community eagerly distributing recall petitions to their neighbors. These guys aren't the model citizens of our society that they would like everyone to believe. Are we just going to lie down and get run over by these thugs?
TC
Wed, Jun 8, 2011 : 5:19 p.m.
I'm mad as heck - but the real problem is in Lansing. That is where the important economic decisions are being made. What local districts is akin to rearranging the deck chairs on a sinking ship. I don't mean to minimize the efforts of the school board but they can only play the hand they are dealt.
a2person
Wed, Jun 8, 2011 : 2 p.m.
People ARE up in arms, and they ARE circulating recall petitions!
snoopdog
Wed, Jun 8, 2011 : 12:41 p.m.
You cannot be serious, this has got to be a joke ! Good Day
Basic Bob
Wed, Jun 8, 2011 : 12:31 p.m.
The 3 Richards did not make this poor excuse for a budget. Blame must be laid at the feet of Deb Mexicotte and the rest of the board for serving only the Montgomery Burns Park elite.
Stephen Lange Ranzini
Wed, Jun 8, 2011 : 11:51 a.m.
Comments in the previous story about eliminating high school bus service attributed to members of the school board, management and commenters on AnnArbor.com indicate to me that many policies of the board which impact spending and academic standards aren't being followed. For example, the school board's policy is that bus stops are a half mile apart. However, this was being routinely violated and some stops were just 100 feet apart, which increased costs substantially. One employee noted anonymously that numerous policies aren't followed. This is an indication of a poor "control" environment and that there is a need for better internal audit. If there is not effective internal audit, employees and managers who violate the rules know they will not be caught. This must be fixed immediately and expenditure in this area will certainly bring substantial dividends in both academic excellence and the bottom line. Trust but Verify!
Stephen Lange Ranzini
Wed, Jun 8, 2011 : 1:25 p.m.
The need for a strong internal audit control system is not a joke and no large organization can be run effectively or safely without it. Reports from the internal auditor as well as their audit program and the scope of each internal audit should be public documents. Without a strong internal audit function none of the board, management, taxpayers or voters can have any assurance that what they think should happen, does happen. Trust, but VERIFY!
jns131
Wed, Jun 8, 2011 : 12:58 p.m.
Uh huh. And who is going to over see this one? Another board member. This is a total joke to over see and over haul when Ann Arbor is in the hole as it is. Been there done that lets move on with something new.
CincoDeMayo
Wed, Jun 8, 2011 : 12:35 p.m.
Stephen Ranzini for Mayor!
Carole
Wed, Jun 8, 2011 : 12:07 p.m.
Agree wholeheartedly -- first an audit that showed a large number of individuals receiving insurance when they should not be, and now the bus situation. Maybe a deep look into what is going on in the administration of AAPS should be taken.
local
Wed, Jun 8, 2011 : 11:07 a.m.
I am guessing getting rid of Instrumental Music in 5th grade could save 500,000 a year. Doing a better job of allowing families with unique situations into Ann Arbor using school of choice could have gained more revenue. Still wonder about number of principals at high school level. I understand kids need guidance/discipline, but if a few can't handle it, then get others involved to help (counselors/social worker/etc...) No busing to athletic events? All these decisions are going to be tough and are going to anger someone or some group of people. More and more the Snyder cuts to education, even though they are lower then he originally planned, are still significant cuts. Because of that, district are all scrambling to figure it out.
jns131
Wed, Jun 8, 2011 : 12:56 p.m.
I could not agree more with this one. They should make it optional, not mandatory. Ours nearly flunked out because ours could not master the violin. Now choir on the other hand is a great idea. 3 years running for us and heading it to hi school. As for athletic events? This might end a few here and there because parents won't be able to get their children to them. As for after school? This will end because parents need busing to get their children home. Ours uses AATA. Much easier on us.
Basic Bob
Wed, Jun 8, 2011 : 10:37 a.m.
Other districts would close some school buildings to save money, or cut some superfluous administrators. I hope they have a plan to get my kid to school on count day.