Western School Board Approves $24.3 Million Spending Plan that Runs About $1.1 million in the Red (MI)

June 17, 2011

Western School District is hoping for the best on its financial outlook for the coming year.

The Western School Board in a 6-0 vote on Thursday approved a $24.3 million spending plan for the 2011-12 school year that runs $1.1 million in the red.

The distric t could pull from its almost $2.6 million in savings to eliminate that deficit or hope to meet a series of conditions that could significantly reduce it, said Superintendent Michael Smajda.

It could offset the shortfall if it meets four of five school “best practices” criteria set by the state to earn an additional $100 per student and increase insurance contributions from employees, Smajda said

If county voters pass a Headlee override to the Jackson County Intermediate School District’s special education millage in August, it could bring Western about $170,000 in special education funding.

If all those conditions are met, the deficit would be reduced to about $262,701, he said. However, because contract restrictions could prevent the increased insurance contribution, it is more likely to be $589,689, he said.

A teacher retirement also allowed the district to reduce one elementary school class section for a cost savings.

School Board President John Sheets said he was pleased the school system was able to pass a budget without having to make drastic cuts. He said board members expected the financial picture to improve and the district should be able to chip away at the shortfall.

“We’re in a good position,” Sheets said.

Western also has about $637,000 in one-time federal Education Jobs funding that it did not use last year, which is a major factor that allowed the district to avoid layoffs, Smajda said.

“If we didn’t have it, we would be having a totally different conversation,” he said. “We would be talking layoffs.”

The district also will borrow $2 million from the state to start the school year and meet its $1.6 million payroll. Western typically borrows money at the beginning of the school year since state aid payments are not available for the first weeks of classes, school leaders said.

In other business …& lt;br>
– The Western School Board voted 6-0 to join the Capital Area Activities Conference for the 2012-13 school year. Western previously was a part of the Southern Michigan Activities Association. School board member Blaine Goodrich was absent.

– The district will continue its search for a new high school principal. School leaders plan to invite two candidates for second interviews and the school board could choose a new principal during a special meeting later this month. The individual would take over for former Western High School Principal Jeff Manthei, who was chosen to become superintendent of Leslie Public Schools.