Oxford stands to lose millions of dollars in state funding

By James Hanlon
Leader Staff Writer
At an emergency school board meeting Saturday, Aug. 15, the board voted 6-0 to cut short the enrollment deadline for School of Choice students from Aug. 26 to Monday, Aug. 17. Anyone already in the registration process by 11:59 p.m. was allowed to finish.
The change was in response to Michigan House Bill 5913, which had bipartisan support in the state legislature and was signed by Gov. Gretchen Whitmer last week. Locally, the Oxford School Board expressed strong opposition to the bill.
The bill weights per-pupil funding for districts based on 75 percent of last year’s enrollment numbers and 25 percent of this year’s count.
Superintendent Tim Throne illustrated what that would look like with an example, “If we had 1,000 students last fall and we have 1,400 students this fall, we’re going to get 75 percent of 1,000 and 25 percent of 1,400.”

This would hurt districts that see a growth in enrollment through School of Choice. For example, if there are 400 new students from other districts, Oxford will only get paid for 100 of them. Put another way, if a student from Lapeer enrolls in Oxford Schools, Lapeer would get 75 percent of that student’s enrollment funding while Oxford would get 25 percent.
In 2019-2020, Oxford had 1,370 nonresident School of Choice students. At the same time, only 123 Oxford residents enrolled in other school districts, according to the state’s database, MI School Data.
Throne said hundreds of School of Choice students typically sign up in the last week of enrollment.
The amount of per-pupil funding this year is still uncertain, but a significant reduction is expected. The Board does not expect to hear from the state what those figures will be until at least January.
Even with reductions, Oxford stands to lose millions of dollars in state funding.
Michigan’s largest teacher’s union, the Michigan Education Association, argues that the bill “minimizes the impact of students moving between districts under schools of choice, as well as to for-profit cyber charters, which have advertised aggressively to siphon students from traditional schools amidst the pandemic.”
Board President Tom Donnelly expressed his strong opposition and frustration with the bill at length, arguing it punishes Oxford for the excellence it provides, especially at a time when both Oxford Virtual Academy and in-person options are in high demand.
“It’s absolutely illogical and it’s absolutely wrong . . . there are more families who still need their kids to be in brick and mortar schools. We should be enrolling more kids in our district,” he said.
With Oxford’s intention to continue school in-person, the district’s expenses will be much higher than those that have switched to doing everything online, Donnelly argued, since other districts will not have buses running, janitors, food services or utility bills.
“And someone in their wisdom decided that they should get 75 percent of an FTE while we get 25 and educate their children. It’s not how the system works. Ever since Schools of Choice was created, it has never worked this way.”
Donnelly emphasized that the precedent has always been for the funds to follow the student.
“This is entirely frustrating to me because just by what we’ve seen here in Oxford, as districts have made their decisions and we’ve got a flood of calls for virtual and brick and mortar, the fact is we’re meeting the needs of the very parents who pay the taxes and the millages and all the sinking funds that get this stuff going.
“All these districts said, ‘Tough. We’re only going to provide one option. If you don’t like that option, go somewhere else.’
“So they go somewhere else, and then legislature meets on a Saturday to shift it all around to make sure those original districts stay funded. Districts all over Oakland County are going to make bank this year. It’s sad. They’re going to increase their revenues and increase their profitability in 2020-21 on the backs of Oxford’s school system.”
Donnelly made it clear that Oxford is happy to educate children from surrounding communities and that despite this setback, they will be okay financially.
“We’re a solvent district. We’re going to meet the needs of the School of Choice kids who are already in or in the process of being in. We’re feeling for those who will not be able to get in.”
Representative John Reilly (R-Oakland Township) explained his vote in a statement:
“This may drastically hurt schools. And unfortunately, one of those school districts is Oxford Community Schools. Oxford Schools is growing rapidly because of their innovation practices. Their innovation draws many students to the OVA program in normal years, and this year it has only rapidly grown.
“The 75-25 split will result in an unexpected financial hit that is unacceptable to Oxford. I have spoken with many people from Oxford Schools and their concern, worry, and unease is all too real. To reiterate, without any changes to HB 5913, I will oppose the bill and stand firm with Oxford.”
Senator Rosemary Bayer (D-Beverly Hills), who represents Oxford, also voted against the bill.
“Our parents, teachers and students — in fact, our entire community — deserves better than this and I am disappointed that it passed,” she said. “Regardless, we still have work to do on the rapidly approaching new fiscal year and more than ever, I am committed to securing the funding, resources, and tools that Oakland County and my district need.”
The bill passed the Senate 23-15 and the House 73-33.

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