Pontiac schools project $10M deficit, notify state
Tuesday, November 11, 2008 3:14 PM EST
By DIANA DILLABER MURRAYOf The Oakland Press
Pontiac school officials are projecting a $10 million deficit, making it mandatory for the district to submit a deficit reduction plan to the state.
Acting Superintendent Linda Paramore notified Gov. Jennifer Granholm and other state officials of the district’s dire financial situation Monday after meeting with outside auditors Friday.
Paramore notified board members in a letter Friday.
“Simply put, an enrollment decline by over 15 percent in just the last 12 months and by over 22 percent in the last 24 months has created an approximate $16 million revenue reduction in two years and a resulting financial challenge that cannot be overcome by the end of the current fiscal year,” Paramore wrote in a letter to the Board of Education.
In addition, school officials fear the state may reduce state aid to schools by as much as $100 to $200 per student because of the poor economy.Closing buildings — possibly as many as 13 — and the merging of Pontiac Northern and Central high schools will likely be part of the plan for next year.
The district is now operating 20 buildings for a student population that has shrunk to 6,700 kindergarten through 12th-graders plus 400 4-yearolds at a new preschool academy in the former Frost Elementary.In her letter, Paramore said management anticipates a further loss of students before the end of this school year.
The Board of Education and Paramore already had pulled together an advisory committee and scheduled a series of public forums to gather input from the community on making cuts.
The first forum was Nov. 5.But now that the deficit is official, the district is required by state law to come up with a deficit elimination plan to avoid a violation of the Uniform Budget Act, which could occur as early as April or May, Paramore said.
Paramore is recommending the plan be submitted to the Michigan Department of Education no later than Feb. 1, “not before that because we still believe that the meetings with the public are key and we have to get their input,” Paramore said.
The advisory committee will help school officials design the deficit reduction plan, she said.Once approved by the state, the district would be obligated to follow the plan until the budget is balanced.
“Even with substantial expenditure reduction actions in the next two months, a very significant deficit fund balance of approximately $10 million will occur as of June 30, 2009 and the district would therefore be unable to comply with the Uniform Budget Act,” Paramore said in a letter to trustees.
Paramore is recommending a plan that would eliminate the difference between revenue and expenditures by June 30, 2011.Although the closing of schools will be difficult for the community, Paramore said the district can come out of the process with improved educational programs for students.
“Curriculum and programs drive everything. It has been a long time since they were put first.”
This year, sixth-graders were put back in elementary schools to help their success in school, a pre-school academy was opened and a law academy was opened in one of the high schools.
School officials are hoping to offer such things as magnet middle schools and smaller themed high schools within a large high school, all to increase student achievement and retain students.
The acting superintendent said officials have been trying to get the severity of the district’s financial problems to the public and involve them in the solution, but she was disappointed only 50 people turned out for the first forum last week.
That number included only a handful of parents and students.
Auditors were to give their report at a Monday night board meeting.
FYIThe next three forums are scheduled for 6 to 8 p.m. Nov. 18 at Pontiac Central High School, 300 W. Huron; 1:30 to 3:30 p.m. Dec. 6 at Whitmer Human Resource Center, 60 Parkhurst in the city-school complex off Auburn Road at Woodward northbound; and 6 to 8 p.m. Jan. 13 at WHRC.
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