Senate Appropriations School Aid Subcommittee members reviewed the status of the proposed 2009-10 budget Tuesday, but in the process heard some hard reminders of the condition of the state's schools.

The majority of school districts are seeing declining enrollments, the subcommittee heard.

And the number of school districts that are technically bankrupt is growing, with dozens with extremely thin financial reserves, they were also told.

The news was grim, committee members were told, and subcommittee chair, Sen. Ron Jelinek (R-Three Oaks), agreed.

Robbie Jameson, of the state's Budget Office, said 70 percent of the state's school districts have experienced declining enrollment and would be eligible for state grants to help districts with declining enrollments.

Meanwhile, Rick Floria, top financial officer for the Department of Education, said that 27 districts across the state face deficits.   That number has been growing continuously over the last several years and the state now needs some help to oversee those districts.

When asked how many districts may be close to that condition, Mr. Floria said he did not have an exact count, but that between 60 and 90 districts have 5 percent or less in financial reserves.

Source: Gongwer News Service, 4.21.09