By Bill Wright, Chief Financial Officer, Tecumseh Public Schools
Last week, the forecast for the shortfall in the revenue for the Tecumseh Public Schools was highlighted. In the current fiscal year (FY), 2009-2010, TPS will be forced to operate on $1,890,572 (or 8.1%) less formula revenue than the prior fiscal year, 2008-2009. State aid formula revenue is defined as the district foundation allowance (FA) multiplied by the district student enrollment. In FY-2010-2011, the situation is projected to deteriorate as the formula revenue will yield $2,739,476 (or 12.7%) less than the current year. When combined, next year’s (2010-2011) state aid formula will yield $4,630,048 (or 19.8%) less than last year (2008-2009). As we discussed, the shortfall in formula revenue is based on two factors; declining student enrollment and cuts in the state school aid foundation allowance. For next year (2010-2011) the formula revenue is only slightly above (less than $10,000 above) the formula revenue in the 1999-2000 fiscal year, eleven years ago.
With the steep declines in revenue, expenditures have naturally continued to rise. With the majority, or about 85% of the TPS budget allocated to staff salaries and benefits, much of the overall increase in district expenditures can be attributed to those expenditures typically associated with staff costs. Energy and school supply expenditures have also risen significantly over the past several years.
Examples of staff-related cost increases can be seen in the following charts. Monthly costs for the district’s primary health insurance package increased from $706.86 per month in 2000-2001 to $1,300.42 (or 83.8%) this year. Please refer to Chart 1. Some employee groups are currently paying for a portion of their healthcare premiums. Please refer to Table 1.
TPS participates in the Michigan Public School EmployeeRetirement System (MPSERS) and contributes a statutory-based rate on each dollar of earned income for each employee of the district. This year’s rate is 16.94% and has generally increased over the past several years. Please refer to Chart 2. Several employees also contribute a portion of their salary to MPSERS.
Additional financial information will be discussed with the Special Economic Advisory Committee (SEAC) at the group’s first meeting onThursday, December 10, 2009. Subsequent meetings with TPS staff and community groups are scheduled for January, 2010. Also, the TPS website will be updated with current financial information as the district is making additional efforts to update the community and district stake holders regarding the overall and ever-changing position of the school district finances.
Submitted by: Bill Wright, TPS Chief Financial Officer
Freedom, are you serious?
Rotfl, Freedom, c'mon I bet a kindergarten teacher could win two games! Unhappy, you are correct - Untouchable - no matter of seniority. TecResident - you were close, they told us 2.1 Million but I'm betting closer to 2.5 or 3 Million by the time all the underhanded dealings are said and done. Freedom I don't think Mensing has anything to worry about, his contract is probably more iron clad than McAran's. I do disagree somewhat with the "rebuilding" theory, I think every season stands alone, either you use the people you have to their best possible use or you lose, every year you have who you have, some come and some go, you have to be able to use the people you have to win games.
Yes, I was serious
Dave ... assuming that was you in that response, since one can assume any identity on this site, that seems like a rather careless stance for somebody interested in getting on the ballot for School Board!
Are Kindergarten teachers deserving of that belittling statement? Granted each season stands alone, but a quality, winning coach attracts quality, winning 'future' players over time. Parents are likely to relocate to districts that have established, winning programs if their pee-wee football players begin to show real talent. Would you enroll your kids in a losing program if there was a possibility of a full-ride scholarship in their future? Of course there is a rebuilding period, he inherited the previous coach's players, playbook, etc ... wow, I just don't know how to respond, that just didn't sound like the sensible Dave Govro I've gotten to know in this forum.
Merry Christmas to the real Dave.
Gorvo
Come on Dave. Are you saying that the work that goes into coaching anything is easy? What are your vast credentials? All coaches work hard at their sport, not just at Tecumseh but any place. Will we be seeing your name on the ballot for the next Board election? I doubt it. You would rather be a blow hard and be able to organize recall efforts. Plus if they (TPS) called you back to work tomorrow you would be singing a different tune.Hey Mensing won 2 games this year...he was 2-7. You are 0-1 in the recall game this year, his record is better imagine that!! Go find the rock and crawl back under it!!!
Another Residents thoughts
One more item I forgot, I don't know how they handle layoffs with teachers but the football coach and his wife have to be near the bottom of seniorty. However in this district if you coach a sport it looks like you are exempt from getting layed off. Lets keep the gym teacher and lay off the teachers that help the students with reading, match, etc....
Coach
Although I understand your frustration and sympathize with your other thoughts, I can't agree about the football coach. He was contracted to come here and coach football, which is in itself sort of a skilled trade. Just 'anyone' could not fill that position with any degree of success.
I don't know any details about his wife, and don't want to for that matter. I hate the idea of anyone else losing their job, period. I do feel strongly, however, that regardless of the situation he was brought in, we must support this coach and allow him his due time to build a program that could possibly bring back some students. I don't like it, but football is football. That is NOT to justifty ANYTHING this board has done to this town, but we must support the coach and not get into his head with the threat of losing his job.
Another Residents thoughts
This school board has to go! Why give the top administrator like a 6 year extension for getting the schools in this mess. Nobody on the board had any common sense to look into the future before spending 2.1 million on a new football stadium which that money would have saved some jobs. I have 4 children in the school district and to this day there are subjects they have where they can't bring home their books because the school does not have enough. Now the rumor is that Herrick Park school might be shut down and the kids bused next year over to Tecumseh Acres. We can all sit here and complain but we also need to throw our hats into the ring when the board comes up for re-election, otherwise we have nothing to complain about.
As a resident of tecumseh
As a resident of tecumseh the last 10 years, I'm totally unhappy. We moved here with our young children because it truly is a good community. The good old boy networks and political craziness that surrounds this community is unbelievable. When we arrived in Tecumseh, there were 1200 students in the high school. Now, there is 850 students and it is still declining. I heard administration say that the stadium was a good thing for the community and the school. Then why are students leaving, why are families relocating, why is there a huge financial mess???? Next year will see many teachers go and plenty of more unhappiness. All the teachers that were hired within the last 5 years will be gone, at least that is the local gossip. I will hopefully not be around to see it. Enough is enough.
Tecumseh School Shortfall
Wow, so glad we spent how much on a new Sports Facility ?? How much was that again ?? anyone?, anyone?
I thought it was a $2
I thought it was a $2 million project. In any case, it was money foolishly spent... especially when the community was smart enough to realize that things were going to get worse, economically. Our school board has failed our children in a big way.
Wasn't it $1.2 million?
Wasn't it $1.2 million? And the return on that investment? Do the math: $1,200,000 - teacher cuts - program cuts - students leaving because of teacher cuts, program cuts and parents fed up with irresponsible TPS financial decisions = ZERO.