Parents and taxpayers will have three opportunities this month to inform themselves and give input regarding potential cost-saving measures being considered by Oxford Community Schools in order to offset the estimated $4.785 million budget deficit the district’s facing for the 2010-11 fiscal year.
Community forums are set for 7 p.m. Thursday, March 11 at the Oxford High School LGI Room; 7 p.m. Wednesday, March 17 at the Oxford Middle School LGI Room; and 7 p.m. Wednesday, March 31 at Clear Lake Elementary School.
Tim Loock, assistant superintendent of business and operations, indicated these presentations are all about informing the public of the various cost-reducing options, then seeking their input and feedback.
‘Most of these things haven’t been decided,? he said. ‘This isn’t (about) ‘here’s what we’re going to do folks.? It’s (about) ‘these are some ideas, here’s the potential savings, now what do you think?? We still want to run those ideas past the community.?
Loock and Deputy Superintendent Nancy Kammer will host the March 11 and March 17 forums.
Superintendent Dr. William Skilling is in China on business until March 18. He left March 5.
Loock said he and Skilling will most likely host the March 31 forum together.
As part of the school district’s budgeting plan, the school board is expected to discuss cost-saving recommendations at its May 10 work session meeting.
However, nothing would be approved until the May 24 business meeting.
‘That’s the calendar we’re trying to stick to,? Loock said.
Privatization Options
The potential privatization of custodial and transportation services is one of the big cost-saving options currently being explored by the district.
‘We’re trying to make these budget reductions without impacting the instructional program,? Loock said. ‘Honestly, if they don’t impact instruction, I don’t think people would have a lot of issue with it.?
Loock noted the public’s perception of privatizing non-instructional services has ‘changed a lot in the last couple years.?
When he dealt with it four years ago while working for the Avondale school district, he said, ‘At this point in the process, it was a real hot button (issue).?
But ‘now that more and more school districts have successfully privatized these services,? parents and communities are ‘happy? because the job’s still getting done while tricts are ‘seeing substantial savings greater than what they had anticipated,? according to Loock. Privatizing services is ‘becoming more business-as-usual instead of an anomaly,? he noted.
According to a 2009 survey conducted by the Midland-based Mackinac Center for Public Policy, 246 of the state’s 551 school districts (or 44.6 percent) contract out for food, custodial or transportation services.
A total of 111 districts have privatized custodial services, 38 contract out for transportation and 162 outsource their food services.
Since 2001, the number of Michigan school districts that have privatized one or more services has increased by 44 percent, growing an average of 6.3 percent each year.
The survey also indicated that 217 school districts were satisfied with their private contractors, 13 districts were unsure, 14 did not answer and two districts were not satisfied.
Six private companies have submitted bids ranging $778,320 to $977,597 to provide custodial services for Oxford Schools.
‘The numbers came in better than I had anticipated, which is a good thing because potentially we could have a greater savings,? said Loock, noting the district’s in the process of narrowing it down to two bidders, which will then be compared to each other along with the existing costs and services associated with district employees.
The district’s custodial budget is approximately $1.9 million for labor and supplies.
Projected savings of using a private contractor for custodial services are between $550,000 and $600,000 in the first year and a little more than $900,000 annually by the fifth year.
A request seeking bids for transportation services has not been sent out yet. However, the estimated savings of privatizing the district’s busing is estimated to be around $300,000 to $350,000 in the first year alone.
Eliminating bus service?
Potentially privatizing transportation isn’t the only cost-saving measure on the table; there’s also the idea of completely eliminating student busing to and from school.
‘That’s an option,? Loock said. ‘I’m not saying that’s real high on the list of things we’d want to do, but it certainly has a fairly large number attached to it.?
Elimination of busing for general education students could save the district an estimated $1.2 million annually.
Loock noted districts are not legally required to transport general education students back and forth to school.
Districts are only required to transport special education students who need it.
Wage freezes
Another cost-saving option that’s being considered is the idea of staff members giving back and sharing more in costs.
One of the ways that could be accomplished is through a salary freeze for teachers.
‘It’s certainly an idea that would generate savings,? Loock said. ‘We’ve got freezes in place with other staff members (such as administrators) and employee groups for next year.?
The notion of a wage-freeze for teachers hasn’t been resolved, so the district’s ‘still dealing with the contract that we have,? according to Loock.
Right now, the teachers and district are in the midst of a three-year contract, which does not include a wage freeze.
Assumptions
When it comes to making assumptions for the 2010-11 budget, Loock indicated the district’s definitely erring on the side of caution. That’s why the schools are assuming no increase in student enrollment.
‘We’re going to be very conservative and presume that student growth will stay static,? he said. ‘It would be fool-hearty for a district to assume they’re going to have any significant increases in their student count because if they’re not there on count day, you have a problem, a big problem.?
Loock said ‘obviously, if we can get additional students through move-ins or Schools of Choice or staff bringing their own kids here? that would be a revenue bonus for the district and a welcome surprise.
When making financial assumptions, Loock said he’ll take ‘a nice surprise rather than a surprise that’s going to create a big hole in your budget.?
That’s why when it comes to estimating the state funding the district will receive for each student next year (i.e. the foundation grant), Loock said the district isn’t being optimistic.
‘We are assuming a $300 additional reduction next year,? he said. ‘Using our assumption, we’re at just under $7,100 per student next year.?
The current amount of state funding the district receives is $7,392. That’s following a $165 per student reduction made the state Legislature last fall.
Loock admitted Oxford’s estimated reduction for 2010-11 is on the high side.
‘There’s been lots of numbers tossed around (for next year),? he said. ‘The last estimate I saw was a $255 (per pupil) reduction in student funding.?
But there’s a good reason for inflating the estimated cut with an extra $45 per student.
‘This year we assumed $150 and got $165,? Loock explained. ‘We’re not trying to overinflate the negative, we’re trying to be realistic based on what’s happened. Typically whatever they say, it’s worse. We might as well assume the worst, and if it comes out less, then that’s good news. It’s easier to deal with.?
No grant money yet
Some people may wonder why the Oxford school district is facing any kind of a budget deficit next year when last year it was awarded a $9.6 million Project ReImagine grant from the state.
‘Awarding a grant and actually receiving the funds are two very different things,? Loock said. ‘We have not received any of that money and at this point, don’t know when it will start flowing, so we’re not spending it.?
‘We’ve been told by the state Department of Education that they are committed to funding those Project ReImagine grants,? he continued. ‘We just haven’t heard exactly how they’re going to accomplish that.?
As a result, the district is not including those millions of dollars into its revenue projections. Loock noted receiving the Project ReImagine grant money would definitely be a boost to the district.
‘It would certainly support our initiatives and it would be a wonderful opportunity for the school district to really make some changes,? he said.