The Milan News-Leader
A Heritage Newspaper
Weekly Publication
District reacts to per-pupil cut
Milan officials say effects will not be felt until the next fiscal year
By Brian Cox, Staff Writer
PUBLISHED: March 29, 2007
While the Republican-led Senate rejected Gov. Jennifer Granholm's plan for a 2 percent sales tax on services, the governor fired right back Friday saying she would never approve of the Senate's budget-cutting plan that would trim $377 million from the School Aid Fund and $255 million from the state general fund.
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Lawmakers on both sides of the aisle say the end result will most likely be a combination of cuts and some kind of revenue-enhancement plan.
School officials in both Saline and Milan were glad to see the governor quickly dismiss cutting $377 million from the schools. The Senate Republican plan called for reducing funding to public schools by $34 per pupil from its current $7,085 minimum per student. The Republicans argued that the $34 is much less than other previous numbers recommended and that most districts have enough revenue to deal with the reduction without the cuts reaching the classrooms.
School officials in Saline and Milan said they would be able to absorb the cuts this year, but would feel the impact next year.
"We wouldn't make any changes this year," said Dee Fleszar, finance director for Milan Area Schools, "but it just adds to our problems next year."
In Saline, a cut of $34 per student would result in a hit of $190,000, while Milan would see about half that, $82,000, taken back.
Tom Wall, assistant superintendent for administrative services in the Saline Area School District, said he planned to prepare next year's budget, which is due in May, based on whatever cut the state decides on.
"We're estimating a flat increase in state aid and flat growth for next year," Wall said, adding he believed the $34 cut was probably the worst-case scenario. Wall expects the governor and the legislature to reach a compromise that will probably be lower sometime in late April.
If necessary, Milan will tap into its fund equity balance to make up for the cuts.
"We do have a fund balance to cover (the cuts)," Fleszar said, "but the fund is dangerously low and that's worrisome to us."
Wall said Saline expects to find the money in savings in utility costs and from the midyear layoffs in November, which saw seven teachers and six paraeducators let go.
"We're running a little bit better on utilities because of the mild winter," he said. "And the midyear cuts in November will help. It was good for us to act early."
State Rep. Pam Byrnes, D- 52nd District, said the Republicans' plan would have drastically hurt Michigan schools.
"It's just not realistic," she said. "It would have hurt our cities, our schools and our public safety. The cuts would have been devastating."
The plan would have meant a $4 million hit for Detroit schools and a $568,884 hit for Ann Arbor schools.
Granholm and the Legislature are close to an agreement on trimming only the first $310 million of the $940 million needed to be cut from the current fiscal year budget.
Wall said he doesn't expect the financial picture for the state or its schools to improve next year.
"We're only a little way down a long road," he said.
--Heritage Newspapers Editor Terry Jacoby contributed to this story
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