Key Issues
School Funding
School Districts across Michigan are dealing with a number of key issues, most notably, the state of school finance and Michigan’s economy. DeWitt Public Schools has already dealt with many of these issues, cutting in excess of $1,000,000 from the budget in the last two years.
The School Aid Fund, the source of more than 80% of our revenue, has been struggling under the weight of Michigan’s faltering economy and the decline in revenue, specifically sales taxes. Current projections indicate that school districts could face between $100 and $250 per pupil reductions in the Foundation Allowance. A reduction of $100 would drop DeWitt’s funding by nearly $300,000 while a $250 reduction would reduce funding by approximately $750,000.
Even worse, the forecast for 2010-11 is more dismal. Current estimates indicate the Foundation Allowance could be reduced by $600 per pupil. These are devastating reductions that will challenge our ability to maintain balanced budgets and protect the fiscal stability that has been a strength of the District.
These financial challenges alone are going to be the most difficult issues the District will deal with over the next two years. We must maintain open lines of communication with the Community and educate our residents on the challenges and the strategies that will be necessary to maintain financial stability.
Proposal A was passed in 1994 and it is the current method of financing K-12 education in Michigan. The funding strategy was approved by the voters and is a constitutionally established program with implementation language adopted by the legislature. In brief, Proposal A shifted school funding from reliance on local property taxes to a formula of various taxes flowing through the State to local districts. Generally, taxpayers benefited from considerable drops in property taxes, often up to a two-thirds reduction. The sales tax rose to 6% from 4% with the entire increase constitutionally designated for the School Aid Fund.
Bond Issue
The November 3 ballot will also seek voter approval for a $10,430,000 bond issue. This issue will not raise the debt millage rate. The funds provided will allow the District to address some very important facility and site issues. There are no other resources available to perform these improvements. The bond issue will allow the District to solve multiple long-term facility issues related to security, safety, technology, climate control and improvements to our athletic complex. I urge your support on the bond issue. It is important to successful maintenance of our physical plant as well as our financial security.