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Emergency Manager Law; School district option
Topic Started: Jul 1 2011, 09:19 AM (258 Views)
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Northville schools look at Emergency Manager Law
Possible option for district's dire budget situation

5:41 PM, Jun. 29, 2011 |


By Lonnie Huhman

CORRESPONDENT

As the budget deadline approaches for Northville Public Schools, the Board of Education is still exploring options to come to grips with the shaky financial situation.

Board President Joan Wadsworth said at the June 7 meeting the board has a possible option that is made available by the Emergency Manager Law, which was enacted earlier this year by the state of Michigan. She said it bears serious consideration as a potential means for offsetting the cuts impacting students and classrooms.

According to the law, school districts can ask the state to review the district's financial situation. If pursued, the Northville district could enter into a consent agreement with the state, which would then come in and review any aspect of the financial situation.

The board points out a portion of the law that could allow the district to suspend bargaining with unions on changes to employee wages, benefits and other employment conditions. This suspension could hypothetically come 30 days after the district enters into an agreement with the state.

If the board decides to go down this road the possible outcome, if an agreement is not reached with unions, could have the district establishing the wages, benefits and other conditions with the state rather than the unions.

“At this point, we remain hopeful that, working with our employee groups, we can collaboratively address this financial crisis without state involvement,” Wadsworth said.

The school board is currently in negotiations with the unions. Northville Education Association President Ann Cook, who represents the teachers unions, could not be reached for comment.

The board and administration have stated they are taking a two-pronged approach in dealing with the cuts in school funding from the state for the upcoming school year: Continue to advocate with lawmakers in Lansing for legislative relief, and communicate with the employee groups of the need to achieve cost reductions through the collective bargaining process.

The latest from the negotiation table has health insurance as a main obstacle in a final agreement. The board has presented the union with a wage and health insurance proposal. The union has stated its intent to obtain a bid from MESSA for health insurance; however, it is the board's position that the district continue to be the policy holder for its health insurance.

For the upcoming fiscal year, the projected cut from the state will be more than $500 per pupil. And the district indicates this may increase to more than $700 for next year.

A final budget decision was expected at the board meeting June 28. Go to www.hometownlife.com for the story.
http://www.hometownlife.com/article/20110630/NEWS12/106300342/Northville-schools-look-Emergency-Manager-Law?odyssey=mod|mostcom
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