Willow Run Schools projects balanced $21 million budget
For only the second time in the last decade, Willow Run Community Schools is projecting a balanced budget.
The school board approved a budget Thursday night with $20,854,000 in projected revenues and $20,820,000 in expenditures - a difference of $34,000 - for the fiscal year ending in 2011.
The district still faces a roughly $3 million budget shortfall and is working through a deficit elimination plan, which has it on course to be in the black on July 1, 2014.
Although the district has lost students for each of the last 10 years, the projections are based on the assumption that enrollment will rise by 50 students. Bert Emerson, a financial consultant for the district who provided a presentation on the budget, said that figure came from talking to the district’s principals and adding up their expectations.
Trustee Clifford Smith underscored the importance of seeing the district's student population increase.
The Willow Run school district is working to boost enrollment.
File photo
“Sometimes you can’t cut your way out of these situations, you have to grow out of them,” he said.
The budget also assumes no further changes in state per-pupil funding, which has already taken a significant toll on the district. Even if Willow Run retains the same number of students, it will receive $1.4 million less in state funding, Emerson said.
“That is a good deal of the problem and, of course, it’s the same problem every other district has had,” he said.
Emerson also said the district would only spend $51,000 more than it received in revenues in fiscal year 2010. That figure is down from $2.5 million, which is what the district projected when Emerson began working for the district in December.
The district was able to realize its most significant savings in a 4-percent wage cut recently accepted by the Willow Run Education Association.
Emerson applauded the union for its cooperation.
“We couldn’t have done it without their concessions,” he said.
Board President Sheri Washington said she's pleased to see the progress, and said the board felt like it had a clear presentation and understanding of where it stood.
“Knowing from where we came, and knowing where we’re telling the state where we’re going through our deficit elimination plan, I feel a lot more comfortable about our strategic planning efforts,” she said.
Tom Perkins is a freelance writer for AnnArbor.com. Reach the news desk at news@annarbor.com or 734-623-2530.
Comments
Brian Kuehn
Sat, Jun 26, 2010 : 4:19 p.m.
@Val Losse: Unfortunately, most school taxes come from Lansing via the Sales Tax and a State-fixed amount per student. No money or almost no money for Willow Run comes from property taxes. I believe it would take an amendment to the State constitution to directly allocate a fixed percentage of money from the State income tax to schools. Certainly no City income tax will be allowed to support a school district without some major legislative changes.
Val Losse
Fri, Jun 25, 2010 : 2:58 p.m.
Most if not all of the money comes from property taxes. The assessor certainly can help balance the budget by increasing the value of all property in Ypsi. This can happen in any community. All school boards depend on the value of the property in their community instead of the ability of people to pay their fair share to support the schools. Many foreclosures happen because people cannot pay their property taxes or a factory leaves the community. A fair tax is an income tax based on people's ability to pay because they are working. That means also that the schools are supported by a larger number of people and not just the property owners. Also no government agency should have the right to take your home because you cannot pay your property tax because you are not working.
rouzer
Fri, Jun 25, 2010 : 9:55 a.m.
Poor ole Clifford...he's been saying the same thing (we've got to grow the district to balance our budget) for over 10 years. Wonder when he'll finally 'get it?' Or come up with a new idea? Time to get off the school board, Clifford.
ILJ
Fri, Jun 25, 2010 : 9:03 a.m.
"Even if Willow Run retains the same number of students, it will receive $1.4 million less in state funding." This strikes me as utterly insane. How can our schools possibly succeed when the number of students to educate remains the same and the funding drops by $1.4 million in a single year? Talk about being set up to fail...
oldrustynail
Fri, Jun 25, 2010 : 5:34 a.m.
With a history of ten years of losing student population, what does Trustee Clifford Smith based his predication of increased enrollment? Area job growth? Return of the auto factories? Pulling students from school districts with higher MEAP scores and graduation rates? Once Willow Run was the third largest school district in the county, based on the manufacturing jobs around the area. Those days are gone. I think it is time to enter discussions with surrounding districts and consolidate.