Financial Community Conversation – Nov. 16th

Click here to download the presentation.

I’m writing to invite you to a financial “Community Conversation” in the Liberty School Auditorium from 6:30-8:30 p.m. this Monday, November 16th.

The event will be the first of what I hope will be many frank discussions about current and projected Saline Schools’ budget shortfalls. As a primer for that discussion, here’s some background…

Based on up-to-date staffing, adjustments in Special Education reimbursement, declining enrollment and a $292 per-pupil reduction, we have a $2 million shortfall for the (current) 2009-2010 school year.

And, based on a conservative estimated-per-pupil state funding cut of $300, an expected decline in enrollment (the size difference between the graduating class and a typical incoming kindergarten class), and increases in salaries, health care, energy, etc., we project an additional shortfall of $3.4 million next year.

This is a combined $5.4 million deficit in the next 18 months. (As a point of reference, our current fund balance is $3.4 million – 6.5% of our $53 million total budget. Independent auditors recommend that a company of our size maintain a 10-15% fund balance.)

If we do nothing to address this issue Saline Schools will be insolvent by the middle of next year. The Board of Education and I have made it clear that this is NOT an option. We have begun the process of assessing the ramifications of our current shortfall and exploring the options for solving it.

I will give additional information and open the dialogue to you at Monday’s “Community Conversation.” I look forward to seeing you there.