Kent Barnes' Guest Viewpoint appeared in the Tri-County Times 6/7/09

For the 2009-10, 2010-11, and 2011-12 school years, projecting accurate budgets, living within budget parameters, and sustaining needed student educational programs will be overriding issues for school  may not have a current districts. Unfortunately, Michigan school districts year, finalized, state-aid budget until August or September. While Michigan’s fiscal year ends on Sept. 30, school districts must present their upcoming school year budgets by June 30, or the close of their fiscal year.

The American Recovery and Reinvestment Act (ARRA) of 2009 provides federal dollars to assist public schools. However, those dollars are for a specific period with specific uses. Our school district personnel are finalizing the budget. My recent recommendations responded to best use of these ARRA dollars based on the information at the time, but decisions change as data changes.

Very soon, a legislative bill should set the stage to use ARRA dollars to “backfill” the projected School Aid Fund deficit of $429 million dollars (using the consensus revenue estimates that were revised on May 15) or a reduction of  if the state did not have the available ARRA $265 dollars per student, funding. While everyone hoped the stimulus money would carry into the 2010-11 school year, that scenario won’t happen. The stimulus money for education will run out in the 2009-10 school year.

With the projected 2010-11 school-year shortfall, school districts could face a possible reduction of $300 per pupil. No matter what the financial projections may be, the prime directive for public schools remains the same — provides the  services to meet the students’ needs as best we can within needed educational the financial parameters that we have.

We must recognize that the state’s use of one-time money (the ARRA funding) to assist balancing the fiscal year 2008-09 and fiscal year 2009-10 state budgets leads to fiscal issues in fiscal year 2010-11, when the ARRA funding ends.

From my viewpoint, school districts cannot ‘cut’ their way out of this economic scenario. School districts will have to look at different ways of collaboration with other districts, providing different means of educating our students, and many other points that are currently being discussed.

It is not my intent to scare anyone. It is my intent to share appropriate information so that individuals are not ‘blindsided.’

We cannot continue doing what we have always done. That statement does not mean we should discontinue appropriate programs that meet the needs of our students; rather, we cannot keep doing what we are doing simply because we have always done something in a certain manner.

We cannot count on additional funds from the foundation allowance nor additional stimulus monies past the next two years. While circumstances could indeed change for the better, nothing on the horizon indicates that another influx of dollars will be heading our way.

We must use these ARRA dollars wisely for the benefit of our students, and I know we will. More school district budget information will be forthcoming soon.

Source: Tri-County Times, 6.7/09