School board approves mid-year budget cuts totaling $159,172

By DEB WUETHRICH

The Tecumseh School Board unanimously approved mid-year budget cuts Monday night totaling $159,172. The recommended cuts in the 2009-2010 budget is in response to the continued economic decline and the impact on Tecumseh Public Schools revenue levels for the 2009-2010 school year. The proposed cuts would include staff layoffs of seven early learning facilitators, effective Dec. 22, saving $60,000, and three instructional assistants, saving $19,500. The district also would encourage eligible staff to retire and be re-hired through a third party agency for a savings of $16,172. Other recommended cuts include transportation routing and efficiencies, targeting a cut of approximately $40,000; phone bill analysis, $7,500; cell phone plan changes, $2,500; eliminating district paid mileage, $5,000; removing personal heaters and refrigerators, $1,000; and reducing professional conferences, $1,000.

In a memo to the board, TPS Chief Financial Officer Bill Wright said the district is faced with major reductions in revenue as it moves toward the FY-2011 fiscal year, with a forecast of an additional foundation allowance reduction of an estimated $600 per student next year. In addition, TPS is expected to lose up to 140 students in the coming year. The total projected loss of revenue generated by the state aid formula exceeds $2.7 million for next year. Wright noted that the administration is recommending the mid-year cuts to decrease expenditures for this year and to begin budget preparations for the 2010-2011 school year.

Board members also discussed continuation of a feasibility study for closing the administration building for a move by 2011. The board had discussed the possibility at an earlier meeting, but reconsidered due to difficulties such as moving computer servers housed there without some time to get them up and running again. Technology Director Todd Thieken said plans to address the possibility of a move already are being mapped out, and would include notification of affected vendors including the phone company and TC3net. He said the next real window to make such a change without interrupting student programs would be spring break. The board decided to pass the issue to the Facilities Committee for further study on feasibility of closing the building.

Board member Kevin Packard said that having to address issues such as this is just the start of a process that the board will have to face in the coming months.

“One of the lessons we might take away from this is we can’t afford not to have a sense of urgency about these things. If we’re talking about something that might seem worth looking at to save money that could be better used elsewhere, we have a responsibility amongst ourselves here to not be so tentative and get moving on it,” Packard said. “Budget cuts are never easy, and we’re going to have to get past that and have that sense of urgency about things because it’s not going to get easier. There’s going to be an even greater urgency next year.”

Board president Debbie Johnson-Berges said that she was concerned about the fact that the recently hired Early Learning Facilitator positions had to go. “I hope if we’re able to find some money somewhere that there is a possibility to get these back, because I do think we have seen the value of early learning initiatives in this district.”

On another matter, TPS also will join schools across the state that are pursuing a due diligence process regarding possible grant funding through the federal Race to the Top (RTTT) program. Michigan is one of 37 states that have applied for the federal funds, and if the state receives the funding, Tecumseh could gain approximately $77,000 in ARRA money.

School boards across the state are scrambling to pass resolutions by January 7 in order to remain eligible for the funding, but the process involves asking districts to provide written assurances and commitments to implement a plan that, at this time, remains undefined, as outlined by the Thrun lawfirm in a letter to schools.
“This scenario places school officials on the horns of an extremely difficult dilemma,” the letter states, pointing out that not signing a memorandum of understanding would render schools ineligible to receive the funding, if the state’s application is approved.
Tecumseh School Board members discussed the matter for several minutes on Monday night, with Superintendent Mike McAran saying that a vote in favor of pursuing the investigation would be putting Tecumseh’s “hat in the ring,” but then having to “hold on until the state decides exactly what the legislature is going to say” about the plan and its requirements. RTTT is expected to address core standards and could require changes to the teacher evaluation process, the Michigan Merit curriculum and other areas.

“This is something the state of Michigan still has to win in order to get $400 million and now 37 states have submitted applications,” said Thieken, who attended a special meeting on the topic with McAran in Grand Rapids. “The bottom line is if the state gets this, there will be changes coming down the pike based on this initiative.”

The board voted 4-2 to proceed with the process. Jason Sines was absent, and Kevin Packard and Lou Englund voted against it. “I have more faith in us working this (reform) out as a school district, working with our teacher associations, than in the state working this out for us,” Englund said.

In other business, the school board members:
• Heard a report form Patrick Little, Beach Middle School Principal in Chelsea, regarding the success of teaming at his school, even with the trimester system.
• Passed a resolution to participate in the 2009-2010 Great Start Readiness Program, which makes TPS eligible to receive $54,400 in school aid funding.
• Agreed to participate in a consortium with Adrian Public Schools in order to receive Title III Limited English Proficient funds of $806 for the current school year.