Morenci school board 2011.06.08

Written by David Green.

By DAVID GREEN

Falling enrollment, drastic cuts in state aid, a huge increase in staff retirement rates—put together, the situation could put Morenci schools in a deficit situation next year, with all reserve funds used up.

District finance director Erica Metcalf gave board of education members an update on school finances Monday now that Gov. Rick Snyder has made his state budget final.

Although enrollment numbers can only be estimated, Metcalf is following the trend experienced here and in most Michigan school districts. She expects to see more students leave the district than move here, and she’s using the figure 721 as her guess for fall enrollment—a drop of 24 students since the official count in February.

State aid includes the $170 per pupil cut made this year and the $300 per pupil cut made for the next school year in the governor’s budget.

Those funding cuts along with the drop in enrollment equates to a loss of $338,000.

An increase in retirement rates will cost the district a sum equal to $281 per pupil, for a total drop in revenue of more than $540,000. Increases in insurance costs could result in a budget shortfall of $1.18 million for the 2011-12 school year—a figure that only grows with each succeeding year.

“That’s by far the largest deficit that we’ve faced since I’ve been here,” Metcalf said.

The shortfall equals the cost of the entire teaching staff of the middle school, with the exception of special education teachers and the half guidance counselor position.

Metcalf doesn’t yet know how it can be overcome.

The deficit will be only partially covered by cash reserves that have fallen over the past decade. In the 1997-98 school year, Morenci had a fund balance of $2.1 million. Budget shortfalls caused that amount to shrink to $823,000 in the 2009-10 school year and currently stands at $523,000.

The district has the opportunity to cancel part of the loss through two incentive programs offered by the state.

“The governor’s cuts are bad,” Metcalf said, “but Morenci has an opportunity to capture up to $200 per child back.”

The first $100 would come through a “best practices” program in which districts would be rewarded for meeting four of five requirements by June 30, 2012.

Metcalf says she isn’t ready to bank on that money because districts have yet to see the details. On the surface, Morenci will have no trouble meeting the requirements largely due to past cost-cutting moves.

The other credit—estimated at $100 per student—is tied into the Michigan Public School Employees Retirement System, but details are pending.

Both of the credits are one-time allocations for the 2011-12 school year, Metcalf said.

Although the news is bad, said Superintendent of Schools Michael Osborne, he hopes the public will develop some confidence knowing that the board knows what the issues are and is working to make changes.

“We are going to make it through this, just like this district has for years,” he said. “Our obligation is to the community, to make sure that we have a school here that’s providing the best education possible, and as the economy turns, as it always has, that we’re in a position to take advantage of it.”

RECALLS—Teachers Jamie DeVoe and Kelly Bush were called back from layoff for the fall, along with bus driver April Shaffer and cook Ronda McCaskey.

  • Front.tug
    MORENCI pep rallies generally end with a tug of war. The senior class entry, shown above, did not advance to the finals. Griffin Grieder, Alaina Webster, Kyle Long and Jazmin Smith are shown at the front of the rope, giving it their best effort.
  • Accident
    FAYETTE resident Patricia Stambaugh, 64, was declared dead on the scene of a single-vehicle accident Friday morning south of Morenci. Rescue units were called around 9 a.m., but as of Tuesday, law enforcement officers had not yet determined the time of the accident. According to Ohio State Highway Patrol, Stambaugh was driving west on U.S. 20 when her Chevrolet Malibu traveled off the north side of the road and down a steep embankment, coming to rest in Bean Creek (Tiffin River).
  • Athletic Fields
    SPORTS COMPLEX—Fayette’s outdoor athletic facilities will include three ball fields for summer recreation leagues at the southwest corner of the school. The baseball and softball fields, along with the running track, will be constructed on the east side of the school. Outdoor athletic fields were not part of the new school project from 2007, but voters approved a $1.4 million levy for a school addition and the sports fields last August. Both projects are scheduled to be complete by July 20.
  • Front.teacher Leading
    PRESCHOOL MUSIC—Fayette band director Jeffrey Dunford spends the last half hour of the day leading the full-day preschool class in musical activities. Additional photos are on page 7 of this week’s Observer.
  • Front.F.band
    TROMBONISTS Jake Myers (left) and Max Baker perform Friday at the annual Senior Citizens Luncheon at Fayette High School. The National Honor Society and the FFA chapter teamed up to serve a meal to area seniors and to provide musical entertainment. Both the school band and choir performed. Additional photos are on page 7 of this week’s Observer.
  • Station.2
    STRANGE STUFF—Morenci Elementary School students learn that blue isn’t really blue when seen through the right color of lens. Volunteer April Pike presents the lesson to students at one of the many stations brought to the school by the COSI science center. The theme of this year’s visit was the solar system.
  • Front.poles
    MOVING EAST—Utility workers continue their slow progress east along U.S. 20 south of Morenci. New electrical poles are put in place before wiring is moved into place.

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