The Manchester Enterprise
A Heritage Newspaper
Weekly Publication
School board considering cuts
Proposed cut of preschool program draws protest from parents
By Alana West, Special Writer
PUBLISHED: January 25, 2007
At least 100 area residents attended a special meeting of the Manchester Board of Education Thursday to learn about proposed program changes and cuts to accommodate a $45,000 budget shortfall.
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The meeting was initially called so trustees could vote on a proposal to refinance $8.5 million in bond funds that were originally borrowed to help fund the new high school. By refinancing the bonds at 4.2 percent, instead of the original 5 percent, the district is expected to save $700,000, district administrators said.
"This money will be credited back to taxpayers in reduced property taxes," said Superintendent David Oegema. "(Unfortunately), it doesn't transfer into the operating budget."
The board voted to refinance the bonds at the lower rate.
The board also discussed renting the former Curves space to house the Manchester Co-op Preschool and watched a presentation by Professional Contract Management Inc., a firm that takes over the contracts of some school employees to help save on retirement costs.
No action was taken on either item.
The district's deficit stems from lower-than-expected enrollment numbers –– by 19 students –– with a negative financial impact of $138,000, and the purchase of two new buses at a cost of $148,000, among other expenditures.
Each student enrolled brings in $7,081 in state aid. This year, an extra $210 was expected per pupil, but state officials plan to take back at least part of the subsidy as it deals with its own financial crisis.
A list of 45 potential items was read and considered for the chopping block. Oegema said the items totaled $571,000.
"That's the bad part –– when we think we need up to $500,000 in cuts and there are those (on this list that) we are not going to cut, then we have issues," said Manchester Board of Education President Ron Ellison.
Ellison said board members will meet to discuss potential cuts several times before coming to an agreement on what will be eliminated.
Some items met with resistance from residents at the meeting, especially the potential cut of the preschool program. The possible sale of Alumni Field and keeping class sizes at their maximum capacity at Klager Elementary School also drew fire.
"How does class size impact the parents making the decision to take their kids out of the district?" asked Stewart Whitney of Manchester.
Many parents in the audience told the school board that they chose to live in Manchester because of its daycare and preschool program.
"I would encourage you to keep the program. It brings students in, and they stay here," said Andy Miars of Milan.
Sue Colvia, the district's community education director, said she doesn't charge for the use of the gym/stage area in the Nellie Ackerson building or for use of Alumni Field, but she could to raise revenue.
"I would rather see you charge for them than cut things in the schools," she said.
Veronica White, a local attorney, encouraged the board to consider selling Alumni Field.
"It's a liability," she said.
The upkeep of the field costs the district about $10,000 a year, Oegema said.
"Selling it would not solve the long-term problem," Ellison said. "I would hate to hear a rumor that we were going to sell it."
Trustee Monty Okey is also against selling the field.
Other items considered to save money included paying substitute teachers and non-staff coaches through an outside vendor, such as PCMI; dropping the alternative education position; reducing or canceling busing to extracurricular activities, especially on the weekends; and combining several positions.
Other ways to meet the deficit include the potential for a countywide millage request stemming from Ann Arbor schools to fund its own budget shortfall. If approved by voters, the move could also garner extra funds for Manchester, district officials said.
School board members are also considering changing the teachers' healthcare insurance to save the district between $100,000 and $200,000 per year.
Board members also heard a presentation from Bernie Pelc, director of a company that helps save districts money by contracting certain employees already working through the school such as substitute teachers and coaches, who do not work full time or claim retirement pensions, but for whom the district must still pay retirement funds.
If the positions were contracted through an outside company, the school would not be required to pay their retirement benefits, saving the school some 20 percent per contracted employee.
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