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.train
    WRECKAGE—Morenci Fire Department member Taylor Schisler walks past the smoking wreckage of a semi-truck tractor on the north side of the Norfolk and Southern Railroad tracks on Ranger Highway. The truck trailer was on the south side of the tracks
  • Front.sculpta
    SCULPTORS—Morenci third grade students Emersyn Thompson (left) and Marissa Lawrence turn spaghetti sticks into mini sculptures Friday during a class visit to Stair District Library. All Morenci Elementary School classes recently visited the library to experience the creative construction toys purchased through the “Sculptamania!” project, funded by a Disney Curiosity Creates grant. The grant is administered by the Association for Library Services to Children, a division of the American Library Association.
  • Funcolor
    LEONIE LEAHY was one of three local hair stylists who volunteered time Friday at the Morenci PTO Fun Night. Her customer, Aubrey Sandusky, looks up at her mother while her hair takes on a perfect match to her outfit. Leahy said she had a great time at the event—nothing but happy clients.
  • Shadow.salon
    LEARNING THE ROPES—Kristy Castillo (left), co-owner of Mane Street Salon, works with Kendal Kuhn as Sierra Orner takes a phone call. The two Morenci Area High School juniors spent Friday at the salon as part of a job shadowing experience.
  • KayseInField
    IN THE FIELD—2004 Morenci graduate Kayse Onweller works in a test plot of wheat in Texas. She’s part of Bayer CropScience’s North American wheat breeding program based in Nebraska, where she completed post-graduate work in plant breeding and genetics.
  • Front.winner
    REFEREE Camden Miller raises the hand of Morenci Jr. Dawgs wrestler Ryder Ryan as his opponent leaves the mat in disappointment. Morenci’s youth wrestling program served as host for a tournament Saturday morning to raise money for the club. Additional photos are on the back page.
  • Front.bank.2
    SHERWOOD STATE Bank opened its Fayette office at a grand opening Friday morning, drawing a large crowd to view the renovated building. Above, Burt Blue talks to teller Cindy Funk, while his wife, Jackie, looks around the new office. The Blues missed the opening and took a quick tour on Tuesday. Few traces remain of the former grocery store and theater, however, part of the original brick wall still shows in the hallway leading to the back of the building. The drive-through window should be ready for customers later in the month.
  • Front.make.three
    FROM THE LEFT, Landon Wilkins, Ryan White and Logan Blaker try out their artistic skills Saturday afternoon at the Morenci PTO’s first Date to Create event. More than 50 people showed up to create decorated planks of wood to hang from rope. The event served as a fund-raiser for miscellaneous PTO projects. Additional photos are on the back of this week’s Observer.

Weekly newspaper serving SE Michigan and NW Ohio - State Line Observer ©2006-2016