Clinton Schools face financial trouble after giving away ‘too much money’

Clinton Community Schools is facing a financial challenge for the 2015-2016 school year. Declining enrollment and recent salary increases have Supt. David Pray and Business Manager Carol Wahl concerned.“The budget should have been controlled and was not,” Pray said. “The current deficit was not something that was inevitable. The previous administration gave too much money to people and now we’re paying the cost.”The budget for the district was approved at the June 30 budget hearing for the Board of Education, but it will require the district to borrow $500,000 from the state this year. There is an expected enrollment decrease of 50 students at the start of the school year in September.The district’s fund balance was at 27.85 percent in the 2010-2011 school year, and this year is projected to be only 8.36 percent. During the board meeting, Pray explained that if state legislation had not lowered the percentage from nine percent to five percent to require the action of an Emergency Manager, Clinton Community Schools would be a candidate for state intervention.“Part of the problem for our district is declining enrollment, which everyone is facing,” said Pray. “We’ve been a pretty solvent district. This will be the first time in 12 years we have to borrow from the state to make payroll. The fund balance has taken a significant hit in the past year or so under the direction of the past administration.”With 83 percent of the budget every year dedicated to compensation for employees, which includes not only salaries but also money for FICA, Social Security, and Workers’ Compensation, wages for Clinton Community Schools have increased significantly, according to Pray.Combined with the loss of students, the district finds itself in a difficult position. During the budget hearing, Pray was asked why the district has lost 100 students in two years.His response was Lenawee County has lost nearly 3,000 students in the last ten years, and Clinton Community Schools has created a marketing committee to address ways to market the district.Despite the grim financial forecast, Pray is grateful to the community for providing the district with a sinking fund to assist with maintenance of district buildings. The technology grant Clinton Community Schools received this summer ensures continued growth for students.“We were very fortunate in receiving the $1.1 million grant,” Pray said.The difficulty for Pray and the board is working to reduce personnel costs. As of right now no layoffs are planned for the district, but positions will not always be filled when teachers and staff retire or leave the district.“If eighty-plus percent of your expenses are in personnel you have to address the budget there,” said Pray. “We will look very closely at our personnel needs.”The supportive response of staff has impressed Pray. Two of the unions have agreed to a wage freeze for the time being.“The teachers association has also been very cooperative,” Pray said. “Any increase in salary they receive will be based on the number of students we have in the district. I give everyone working in our district kudos, they are doing a fantastic job.”Aging buildings are another concern for Clinton Community Schools. Although the roofs and heating systems are all in good condition, repairs are always a possibility. Pray is very aware something could happen and the district would face an expensive situation.“The structures are sound. There are things that might go down,” he said. “What if something major happens? We’re very very fortunate in this school district that our community has provided us with a sinking fund. We try to do preventive maintenance. We’re doing a great job as far as utilities go. We face the same kinds of things individuals face. Something could happen. But right now I think we are in solid shape in those areas. We’re doing it appropriately.”Although the budget has raised concerns, Pray is confident that students and families will see no difference on the first day of school.“We’re consciously reevaluating on a regular basis to do what we need to do to provide quality education to the district at a good cost,” said Pray.