It’s trial by fire for Mike Murray as he begins his second month at the helm of Suttons Bay Public Schools.

Murray, who officially took the superintendent’s job Jan. 26, faces the potential loss of $200,000 from the district’s fund balance for the current school year and looming financial constraints for 2007-08 that could force issuance of pink slips later this month.
“We’ve been told to be prepared to take the hit,” said Murray, who along with the other superintendents of the 16 districts in the Traverse Bay Area Intermediate School District sat down with area legislators Feb. 9 to discuss educational funding for the current and upcoming budget year. “Their budget year runs Sept. 30 through Oct. 1 and ours is July 1 through June 30. To pull back (funding) this time of the year is disastrous, and there’s nothing we can do about it.”

Suttons Bay’s 2006-07 budget, adopted in late June, was based on a per-pupil foundation allowance of $7,085, up $210 from the previous year. Based on a count of 917 students, $6.4 million was expected to be generated.

Gov. Jennifer Granholm’s proposed budget upholds the commitment to the increase in per-pupil funding. State lawmakers, however, facing a $1 billion deficit, rejected her proposal and have 30 days to come up with a counter plan. Upon receipt of the plan, the governor has a 30-day period of her own to respond to the Legislature.

“This ping-ponging could keep going until the year runs out,” Murray said. “To not know (revenue) this year and not know what to expect for next year really puts us in a bind.”

If the per-pupil funding increase doesn’t materialize, Murray said the district may be forced to dip into its $800,000 fund balance to make up the $200,000 shortfall for the current school year. With teacher salaries increasing 1.5 percent by contract in 2007-08, and a 2 percent jump for support staff, school officials may have to again rely on a nest egg that has shrunk significantly in recent years.

Representatives from the Northern Michigan Schools Legislative Association traveled to Lansing Feb. 14 to plead its members’ case.

“We were told (legislators) are aware of our timeline, but our needs don’t create enough sense of urgency to speed things up,” Murray explained. “It would be irresponsible not to plan for the worst case scenario … but it’s not good for morale to cut programs that may ultimately be funded.”

About 85 percent of annual school budgets are for “people.” Lacking funding information from the state for this year or next, the district could be issuing pink slips to teachers at the end of the month as required by contract, 90 days prior to the end of the 2006-07 school year.

Leland Superintendent Mike Hartigan said the state’s failure to come through on the funding increase will force the district to dip into its nest egg as well. Leland’s fund equity is at about $440,000.

“If we don’t get the $210 (per student) it will take 25 percent of our fund balance in the wink of an eye,” he said. “To date, we’ve been in pretty decent shape. We’ve been able to protect our program by not buying textbooks and help from the (Leland Educational) foundation. But this would be a huge blow to our budget.”

Leland’s fund balance represents 10 percent of it annual $4.1 million budget. This could fall to 5.3 percent by the end of the upcoming school year if the funding increase doesn’t come to fruition.

“There are so many unknowns it’s difficult to say how things will turn out,” Hartigan said. “We’re at the three-quarters point of our school year and that money’s already been spent.”

Northport and Glen Lake Schools are out-of-formula and as such rely directly on the non-Homestead property tax on parcels within their boundaries.

On a brighter note, Murray reported progress in discussions among the four county school districts that are working to align their schedule and classes to increase opportunities for students.

“No matter what happens, this is still something we need to do,” Murray said. “We’ve done a lot and are already doing a lot (working together). I think this county is a model for how collaboration can work.”

by Amy Hubbell
email