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| Livonia schools taking wait-and-see approach to funding issue; Observer-March 29, 2011 | |
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| Tweet Topic Started: Mar 29 2011, 11:08 PM (1,378 Views) | |
| Deleted User | May 27 2011, 02:24 PM Post #21 |
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Livonia school chief: ‘Getting close to balancing our budget' Instructional programs would be preserved 6:10 AM, May. 26, 2011 | 2 Comments Written by Karen Smith If the state legislature reduces proposed cuts to school funding from $300 to $100 per student, Livonia Public Schools may not have to cut any instructional programs or any teaching staff for next school year. That was the word Monday night from Superintendent Randy Liepa, who updated the Livonia Board of Education on how the latest school funding news from Lansing may affect the district's budget. Earlier this month, Liepa told the board the district faced a deficit of up to $13.6 million for the 2011-12 school year. That figure included the $300 loss in per-pupil funding from the state, along with decreases in revenue from declining enrollment and increases in retirement costs and contractual step increases. Liepa revised the projected deficit for the 2011-12 school year Monday to $5.4 million — if the House and Senate approve the $100 funding cut agreed to by the state leadership and the district meets a $5 million target in revenue enhancement-cost containment. The projected $5.4 million deficit could be made up with the remaining fund balance from this school year's budget, expected to be $3.8 million or more and up to an additional $1.6 million in cuts, Liepa said. “We're getting close to balancing our budget,” he said. However, the district would have no money left in the bank and would have a deficit budget for the 2012-13 school year if it uses up all of its fund balance in 2011-12. Board members need to decide how much of this year's fund balance they want to use next school year, Liepa said. From 5 to 10 percent of a school district's general fund budget is what experts recommend. That would be $7 million to $14 million for LPS. “My recommendation is we spend every dime,” Liepa said. “I don't know what we can cut any more and still walk out into this community and say we have a quality school district.” He acknowledged it would be pushing the problem off until the following school year because revenue continues to lag expenses by $5 million. (Page 2 of 2) But, he said, the district has made $44 million in cuts over the past decade and now that there's a surplus in the school aid fund, lawmakers want to use it for higher education. “It's flat out wrong,” he said. Board Secretary Rob Freeman said he agrees the district should use all of its fund equity to preserve instructional programs and then go into deficit the following year if necessary. “When the state takes us over, they can have nothing,” he said. Options available to the board for enhancing revenue and containing costs by $5 million include concessions through collective bargaining; privatizing transportation, custodial and/or food services; and expanding schools of choice to kindergarten and first-grade general education students for example, Liepa said. Options for budget reductions other than cutting instructional programs include eliminating transportation for secondary students or all general education students and increasing class sizes up to contractual limits. Liepa said the school district will have more information when the state finalizes its budget, possibly as early as next week. The school board must adopt a budget for next school year by June 30. The board must notify teachers of potential layoff by June 6. Depending on retirements and the budget situation, the board may be able to bring all pink-slipped teachers back, Liepa said. ksmith@hometownlife.com | (313) 222-2098 http://www.hometownlife.com/article/20110526/NEWS10/105260626/Livonia-school-chief-8216-Getting-close-to-balancing-our-budget-?odyssey=mod|newswell|text|Livonia|s |
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