School Funding Cuts and the Governor's Veto of Section 20j 11/11/2009
Waverly Community Schools
School Funding Cuts and the Governor’s Veto of Section 20j
October 28, 2009
Thomas J. Pillar, Ed.D.
Superintendent
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In June 2009 the board of education approved a budget for the 2009/2010 school year that included $1.5 million in budget reductions.
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In June 2009 the board of education approved withdrawing up to an additional $1.2 million from the District’s fund balance for the 2009/2010 budget.
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At the beginning of October Waverly was informed that the state will reduce the per pupil allocation for the 2009/2010 school year by an additional $165. For Waverly this amounts to approximately $495,000.
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In mid-October the Governor vetoed Section 20j of the School Aid Act, which will reduce the per pupil allocation to Waverly an additional $275 per students, which amounts to approximately $800,000.
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The per pupil allocation was prorated an additional $127, which amounts to approximately another $380,000 for Waverly.
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Here is what the 2009/2010 school year looks like:
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The anticipated budget adjustment of $1.68 million must be addressed after approximately one third of the school year has passed because the state’s fiscal year starts in October and the District’s fiscal year (by law) starts in July.
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The impact of the anticipated additional reductions is magnified because of the discrepancy between the state’s fiscal year and the District’s fiscal year. Also, it is likely most budget adjustments would occur at the mid-point of the school year.
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83% of the District’s budget is staff, so it is conceivable that 83% of the budget reductions could be in staff.
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The other 17% is in operations and supplies.
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Staff reductions translate into fewer people, which ultimately means less opportunities for students and/or reduced student services.
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The magnitude of this anticipated budget shortfall is such that hypothetically, at this time of the school year, Waverly could cut all transportation, all athletics, all fine arts and all extra-curricular activities and it still would not be enough to cover the anticipated shortfall.
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Since 2002, Waverly has made budget cuts totaling approximately $6.5 million through 2008-09. As noted above, an additional $1.5 million was approved for 2009-10. Total cuts through 2009-10 are approximately $8 million.
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Waverly ranks 644th out of 773 districts and charter schools in revenue from the state.
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Waverly has a higher per pupil allocation because prior to the passage of Proposal A the Waverly community supported its schools at a higher level than other districts. Currently Waverly homeowners pay an additional millage (approximately 4 mills), while 86% of Michigan homeowners pay only six mills for school operations under Proposal A.
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Waverly received funding from Section 20j of the School Aid Act, but unlike most districts in the state, was not eligible to receive funding from Section 31a (at-risk), which is based upon the number of students receiving free lunch. In 2008/2009 Waverly’s free and reduced lunch student population was 38%, which is anticipated to increase in the 2009/2010 school year due to the state’s poor economic condition. Waverly is certainly not a "rich" district because it received funding under Section 20j.
I encourage you to contact Governor Granholm to express your thoughts on this devastating cut to Waverly at:
Governor Jennifer M. Granholm
P.O. Box 30013
Lansing, MI 48909
517-373-3400
517-335-7858 (Constituent Services)
517-335-6863 (fax)
I also encourage you to contact your local State Representative and State Senator to express your thoughts on this devastating cut to Waverly. In addition, contact Senate Majority Leader Mike Bishop (R), and Speaker of the House Andy Dillon (D).
To find your State Representative: http://house.michigan.gov/find a rep.asp
To find your State Senator: http://senate.michigan.gov/SenatorInfo/find-your-senator.htm
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