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Article of Interest - Michigan News

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Bridges4Kids LogoSurvey Indicates State’s Budget Crisis is Hitting Classrooms
Press Release, Public Education Advocates, December 2, 2003
Contact Tom White at (517) 327-2580
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Lansing, Mich. – Schools in Michigan have already made significant cuts in programs that affect students, employees and their communities. The cuts will continue unless something is done to address the state’s financial crisis according to survey results released today by the Michigan School Business Officials and a host of other education associations representing public schools in Michigan. The survey covered actions taken by school districts over the past two years of financial downturn and asked about plans for the 2004-05 school year if the state’s budget problems continue.

“Schools are closing buildings, reducing busing, cutting student programs and laying off staff. The state cannot expect schools to continue cutting their way out of this mess,” said Tom White, executive director of MSBO. “There are districts in Michigan where there is nothing left to cut.”

Based on the input of school business managers from 339 school districts serving more than 900,000 of Michigan’s 1.7 million public school students, the survey shows that school cuts are clearly having an impact on student programs. While schools reported doing as much as possible to avoid cutting programs that directly impact students, the state’s revenue shortfall caused schools to put off needed repairs to buildings, not replace aging buses, lay off non-instructional staff and eliminate funds for professional development. However, the trend over the three years covered by the survey is that with each reduction in funds from the state comes more and more budget cuts directly impacting kids in the classroom.

White said the survey also shows an unintended consequence of state budget cuts; cuts in state funding to school districts could have a negative impact on Michigan’s economy since public schools are a major employer across the state and continued layoffs, reduced purchases of supplies and services and delayed construction projects have a direct impact on those doing business with schools.

“Our survey showed that school districts plan to cut construction projects that totaled more than $40 million this year alone,” White said. “Losing that work is a big hit to construction firms and other businesses that do a major part of their business with schools across the state.”

According to the survey, 58 percent of Michigan schools have already laid off some employees because of financial issues. If per-pupil funding, the state’s main source of funding for schools, remains frozen next year, as it has for the last two years, and pending cuts are not replaced, about 91 percent of school districts indicated they will layoff staff and/or not replace employees who leave. Many schools reported using funds set aside for a financial rainy day to get through last year and the anticipated cuts for the current year.

Even if the cuts are ultimately less than $200 per pupil this year, the survey reveals that school districts across Michigan will still need to make deep cuts to students programs unless measures are taken to deal with the state’s structural budget deficit.

For the 2004-05 school year, if funding to schools remains unchanged, schools indicated that more cuts will be necessary. An estimated 82 percent of districts in Michigan expect to increase class size. Roughly 74 percent will reduce or eliminate specific educational programs such as foreign language classes and reading programs, and 70 percent will delay or reduce the purchase of textbooks. More than half the schools responding indicated that they will increase student fees for non-curricular activities such as sports and band, and 46 percent will reduce busing services for students.

White said ultimately the survey results clearly show the ongoing effects of problems within Michigan’s school finance system.

“We’re hopeful that the Governor and Legislature will find ways to soften the impact of recently announced revenue shortfalls for 2003-04,” White said. “But we cannot continue to put band-aids on a wound that’s not healing; we need to address the structural problems in Michigan’s budget for schools to ensure that all kids have access to a high quality education in our public schools.”

Survey Results

Figures below are converted to reflect the impact on all 524 school districts in the state.

From January 2003 through mid-November, in response to revenue reductions made BEFORE those that have recently been announced, school districts took the following actions:

· 303(58%) laid off employees

· 366 (70%) did not fill open positions

· 188 (36%) eliminated existing educational programs or services

· 288 (55%) had larger class sizes

· 147 (28%) froze salaries and benefits for some employees

· 277(53%) reduced or eliminated field trips

· 115 (22%) reduced transportation services

· 246 (47%) deferred maintenance on existing facilities

If a reduction of $200 per pupil is imposed this month, school districts expect to take the following additional actions:

· 57 (11%) will reduce the length of their school year

· 303 (58%) will layoff employees or not replace those who quit

· 246 (42%) will put off renovations and/or maintenance to facilities totaling approximately $40 million

· 256 (49%) will delay or reduce the purchase of textbooks

· 105 (20%) will reduce transportation affecting around 19,000 students

· 188 (36%) will cut educational programs like Reading Recovery, honors classes, remedial programs, and extra-curricular activities

· 105 (20%) will increase student fees for non-curricular activities

If cuts from 2003-04 are not replaced and there are no further cuts for 2004-05, districts expected to take the following actions in the 2004-05 school year:

· 477 (91%) will institute layoffs or not replace employees who quit

· 430 (82%) will increase class size

· 241 (46%) will reduce transportation services to students

· 267 (51%) will increase student fees for non-curricular activities

· 366 (70%) will delay or reduce the purchase of textbooks

· 388 (74%) will reduce educational programs

· 455 (87%) will reduce spending on supplies and services

    

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NOTE: (ALL RESOURCES PRE-IDEA 2004 ARE FOR INFORMATIONAL/HISTORICAL RESEARCH PURPOSES ONLY)