The Dexter Leader
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State trims another $125 per pupil from budgets
By Edward Freundl, Staff Writer
PUBLISHED: May 3, 2007
As if school officials needed something else to worry about, the state delivered another blow to their budgets this week.
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Gov. Jennifer Granholm on Monday ordered a $125-per-student cut in state aid to schools because of the state's budget deficit.
For Chelsea's 2,798 students that equates to $349,750, according to Teresa Zigman, executive director of business and operations for the Chelsea School District, and the cut is being taken out of the 2006-07 budget year.
"We will not be making any cuts related to this year," Zigman said. "However, we have been preparing for this news as we have been working with all of our staff with regard to purchasing only what is necessary so we can perhaps save some money to offset this loss."
Zigman added that "there are not many frills to begin with," because almost 90 percent of the district budget is related to salaries and fringe benefits.
"At this point we are also not considering shuffling classes and reducing staff for this current year - again, (it's) too late in the year and not good for kids," Zigman said.
Seven Chelsea teachers and one administrator will not be replaced next year, and the district has already trimmed its curriculum and operational budgets, Zigman said.
"It's not a pretty picture," she added.
The cutbacks would take effect in 30 days unless the state comes up with money to avert them.
"I don't think the Legislature wants to cut schools, either, frankly, but they have no choice - we don't have the money," Granholm said Monday.
Dexter's Executive Director of Finance & Business, Sharon Raschke, explained that the reduction, also known as a proration, would be retroactive to July 1, 2006.
"We still have May, June, July and August state aid payments due from the state for the 2006-07 fiscal year, which ends June 30," she said. "The state would equally reduce our funding over the remaining payments."
Chelsea Superintendent David Killips said this has happened three out of the last five years, and may finally force the Legislature to rethink how public schools are financed.
"Our legislators have cut so much in the last 12 years since the inception of Proposal A, they need to look at that whole process," he said. "Just maybe, state financing of school systems isn't working and we have to go back to local control."
Killips absolved local lawmakers from culpability, however.
"Local legislators have always been supportive of our schools, but I'm not sure the state feels the same way," he said.
In Dexter, the $125 cut will result in the lost of approximately $451,000 for its 3,608 students, according to Superintendent Evelynn Shirk, which will be tough to replace at this point in the year.
"We're just about finished with the school year, and there are not many places we can takes this money from other than our reserves," Shirk said.
The Dexter district has about $4 million in cash reserves, and dipping into that is likely the least objectionable among several unpleasant choices.
"One of the options we could do is to end school early, but that's not a good idea," she said. "The reserve is the only reasonable place to cut.
"We're fortunate that many people who were here before me have planned for this."
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