RC school budget down to the ?nitty gritty?

by Peter Jakey– Managing Editor

In recent years, the dust just doesn?t seem to settle when figuring out school budgets ? this year in particular. By law, school districts have to approve a budget before the end of their fiscal year. That?s easier said than done with the condition of the state economy and school districts not knowing how much money will be coming from Lansing. Information changes by the week, day, and even the hour. Monday was no different, as school officials from the Rogers City Area Schools received a letter from the Department of Management & Budget (DMB) in Lansing regarding the Michigan Public School Employees? Retirement System on the very day they were set to approve the 2007-08 budget. House Bill 4530 of 2007 was signed by the Governor reducing employer contributions required for 2007-08. The DMB sent a letter dated June 6, confirming an $82,347 credit.

School officials believe the move will offset lower state aid payments expected through the summer. Ultimately, there will be a savings of about $50,000 to the district. Superintendent Paul Mancine, who was attending his last regular board meeting, said the budget is preliminary and based on ?assumptions to the best of our ability.? A budget hearing was conducted prior to a general fund budget, with $4,737,900 revenue and $4,911,125 expenditures, being approved on a 5-1 vote.

MANCINE STARTED off the hearing by discussing the fund balance, which was 15.79 percent June 9, but could possibly go up to 17 percent by July 1, or about $798,019. That factors in the $50,000 savings from the retirement fund and reduced expenditures with three retiring teachers not being replaced. The three retiring teachers, with a combined 100 years of service in Rogers City, reduces the amount of expenditures for teachers? wages and benefits by $256,000. The district is operating with seven less teachers than it did two years ago. Mancine said the fund balance is projected to be 12.7 percent at the end of June 2008. He still believes it will be closer to the 15 percent many board members are adamant about keeping in the savings account.

?We are down the nitty-gritty,? said Mancine. ?(Principal) Deb Jones has done a good job to facilitate the absorption of these three positions. ?I give the board credit. I give the past administration credit for having the luxury of having a savings account, to be able to have these healthy discussions, in order for long term planning to take place.?

ARMAND LOISELLE, chairman of the planning and finance committee, said the group met twice before coming up with the final recommendation. If costs are reduced further, the committee talked about different areas that could be cut. ?If you want to further reduce costs, you?re going to talk about services, you are talking about bus routes, you are talking about charging parents and kids to ride transportation for athletics, or pay to play. Maybe no school nurse (or) farm out or privatize positions,? said Mancine. Loiselle said the student count was strong at 601.

The projected student count is at 592, and that?s what is being budgeted. The blended count, which is the number Rogers City will be allowed to submit to the state to receive the $7,085 per student foundation grant, is 608. The student count could change before the beginning of the school year, for the good or the bad. Board member Scott McLennan, who also was attending his last regular meeting, was concerned that there was no money for any major expenditures in the budget, such as the purchase of a new bus or a driver?s education vehicle.

BUILDING, GROUNDS, and transportation supervisor Pat Lamb said the newest bus in the fleet is a 2003 model. He added that the buses are in good shape, with one bus needing a transmission, but a new bus is something that needs to be addressed next year. The oldest operating bus is a 1998 model. The budget hearing was adjourned, and after convening to the regular meeting, the first item on the agenda was approval of the 2007-08 budget. McLennan was the only dissenting vote. In another motion, the board approved the reduction of the support staff personnel by one fulltime equivalency due to decreased needs in the special education area at Rogers City Elementary School. The name of the person will not be released until next month. Also, the funding for the school success worker has been reduced, resulting in the reduction of the position held by Amy Nadolsky.

IN OTHER business:

? Overall fees for driver education went from $265 to $340. A motion approved by the board sets segment I fees at $300, while segment I

I will be $40.

Jones checked with other districts and told the board the new rate is ?very reasonable.? ? Principal Jones said the next committee meeting regarding the proposal to close the campus for the next school year is June 28 at 7 p.m. There were about 12 people at the last meeting, which consisted of staff and parents. Jones said most of the comments she has heard about closing the campus have been positive. By having the meeting late in June, they were hoping to start receiving input from new superintendent Daniel Byrne. His wife is expecting a child about the same time, so that may not be possible.

President Mike Marx expects Byrne to be on board July 2. The committee is hoping to report back to the full board by July 9.

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