BUDGET & FINANCE
Latest News and Updates
May 2010
Education Funding continues to be Challenging & Uncertain
Once again we face the prospect of building a budget based on our best estimates in the face of dwindling resources and legislative inaction. We have successfully faced numerous fiscal challenges over the past several years, yet we have a monumental task before us. Despite the fact the District has cut over $6.6 million out of its budgets over the past ten years, we once again face the task of finding another $1.4 to $1.6 million in cuts from our 2010-2011 budget. Our fiscal challenges are caused by a slightly declining enrollment, a stagnant economy, and dwindling State funding of schools. Despite these challenges, the District is committed to maintaining our tradition of academic and extra-curricular excellence, while at the same time staying fiscally prudent. As I have gone around to various community groups explaining the current fiscal crisis, I find that many community members do not understand how our schools are financed. School funding is largely determined by the number of students in the district and by how much the State has available for schools. Our student population continues to decrease, just like most other districts across the state, and lower student numbers result in less money for our schools. The second critical factor, the amount of money our State allocates to schools, is determined by our State’s economy and tax structure. Hence, it should not be a surprise that we expect to see minimal increases in funding while expenses continue to rise. While the levying of property taxes is still a critical part of school funding, the District is does not enjoy increased funding when property values go up; the State of Michigan is the winner in those circumstances due to how school funding is calculated. You could take Bay Harbor, duplicate it within our District with the corresponding increase in taxable values and tax revenue, and the District would not receive one penny more towards operating our District. The topic of proposal A, and its impact on school funding is presented in some detail on the presentations listed below on this webpage. I invite you to review them, and then contact me with any questions you might have. The District continues to maintain the facilities our taxpayers have so generously provided at exceptionally high levels. Our focus over the past few years has been to upgrade the aging, and in some cases ancient, HVAC and electrical systems in our schools. We have taken the opportunity to make those upgrades with a strong emphasis on energy-efficiency. I am happy to report that these efforts are paying dividends both in the comfort levels of our students and staff, and on the energy costs incurred to keep our facilities open. Projects started in the Spring of 2009 and finished in November 2009, have reaped natural gas savings of $155,000 through March 2010. Electrical savings in that same period have equaled approximately $25,000. These cost savings are not one time only savings, but rather will be enjoyed for many years to come. This is a significant positive impact on our operational budget, and has helped lessen the size of cuts we are facing for the upcoming school year. Looking forward, the Public Schools of Petoskey will strive to continue to be the best that we can be with reduced resources. The path will not be easy, and many tough decisions will have to be made. Be assured that our overriding principle when making those decisions will continue to be based upon the premise of “What is best for kids.” Thank you for your support as we work to make the Public Schools of Petoskey a “Special Place for Everyone.” Kent J. Cartwright Chief Financial Officer Public Schools of Petoskey A historical perspective can be found be reviewing these archived pages.