MSBO survey reveals deep cuts in store

 

In the 2010 report on the Fiscal Condition of Michigan’s Schools by the Michigan School Business Officials (MSBO) survey results show that schools across Michigan have initiated and will continue to implement significant cutbacks in programs that affect students, employees and communities. A vast majority (83%) districts surveyed plan to freeze salaries and benefits for some or all employees. And nearly all (96%) anticipate laying off staff and/or leaving vacant positions unfilled for 2010-11.

Three quarters of reporting districts plan to consolidate/collaborate some additional services with other districts or ISDs to help reduce costs. This figure is up from 54% who reported consolidating services in 2009-10.

Since 2003, MSBO has conducted a survey to learn the impact of the state’s budget crisis on schools. This year’s survey covers actions taken by school districts over the past year and asked schools what they expect to do if budget cuts of at least $268 per pupil occur (the estimated shortfall for 2010-11 from the January Consensus Revenue Estimating Conference).

Following are results based on the input of school business managers from more than 300 school districts of Michigan’s 551 K-12 districts. School business managers reported these steps have either been taken, or are planned to help deal with the declining budgets:

Fiscal Year 2009-10:
96 percent currently have an adopted budget with at least a decrease of $165 per pupil for 2009-10.

• 7 percent expect to have a fund balance deficit (negative reserves) at June 30, 2010.
• 74 percent laid off / did not fill positions (over 3,000 teachers, administrators and support staff).
• 54 percent consolidated/collaborated services.
• 54 percent increased class sizes.
• 61 percent froze salaries and benefits for someor all employees.

Fiscal Year 2010-11:
Assuming a 2010-11 funding shortfall of $268 per pupil (in addition to the $165 for 2009-100):

• 22 percent of districts anticipate a fund balance deficit (negative reserves) at June 30, 2011.
• 96 percent of districts anticipate laying off staff and/or leaving vacant positions unfilled for 2010-11 (almost 4,000 more teachers, administrators and support staff.)
• 21 percent plan to close one or more school buildings.
• 48 percent of districts plan to eliminate or significantly reduce the general fund subsidy for athletics.
• 54 percent of districts plan to eliminate existing educational programs or services just to make ends meet.
• 76 percent of reporting districts plan to consolidate/collaborate some additional services with other districts or ISDs to help reduce costs.
• 85 percent report that class sizes will increase due to staff cuts and closing school buildings.
• 53 percent will cancel orders for new buses or other major capital items that are needed to provide a well-rounded learning environment.
• 83 percent of districts plan to freeze salaries and benefits for some or all employees.
• 46 percent will reduce or eliminate transportation for students, which put a burden on parents.
• 56 percent of districts will reduce or eliminate field trips and other extra-curricular activities that provide real-world educational experiences.

For questions about the survey, contact David Martell, MSBO Executive Director, at (517) 327-5920; dmartell@msbo.org