deficit elimination plan

Steve Carmody / Michigan Radio

School officials are worried about the Legislature’s latest plan to help financially troubled school districts.

The state House Financial Liability Reform committee is expected to take up seven bills on Thursday that would create an early warning system to identify financially troubled schools. The bills would require enhanced deficit elimination plans and increase the cap on emergency loans to school districts.

Steve Carmody / Michigan Radio

State lawmakers could take up legislation next week meant to keep schools out of deficit.

The legislation would require more reporting from schools that are deemed to be in financial trouble. It could also open up more money in state grants and loans.

State Sen. Howard Walker, R-Traverse City, says he’s confident the bills will reach the governor’s desk by the end of the year.

“The more I talk about the process that we’re trying to establish the more support we get,” said Walker.

Steve Carmody / Michigan Radio

The Flint school district once again fell short of its student count day forecast.   

90% of a district’s per-pupil funding from the state is based on the fall count day number.    

Flint fell about 150 students short of its projection for this year. Flint gets roughly $7,500 from the state for each student.  The district will now have to redo its plan to eliminate its $20 million deficit. 

Larry Watkins is Flint’s interim superintendent. He’s not disappointed by the number.

Steve Carmody / Michigan Radio

The state has signed off on a plan to eliminate the Saginaw school district’s budget deficit.

Teacher pay cuts and closing a high school are part of the Deficit Elimination Plan the district sent to the state Department of Education back in July. 

Today state education officials approved the plan, which “is largely dependent on staff reductions and employee concessions.” 

Steve Carmody / Michigan Radio

The Flint school board last night approved a plan to eliminate its $20.4 million deficit.  

But the plan relies on the district being able to do something it has struggled to do:  retain students.

The Flint school district delivers its revised deficit elimination plan to the state Department of Education tomorrow.  The plan calls for zeroing out a $20.4 million deficit by the end of 2021.    

Steve Carmody / Michigan Radio

The Flint school district is sinking deeper into red ink.

Less than 12 months ago, an audit placed the district’s budget deficit at $10.4 million.  It's now pegged at $20.4 million.  

The Flint school district has been struggling to reduce its multi-million dollar deficit for years. But last night, school district officials described recent budget plans as being “far from reality,” even describing the district’s current budget as only ”close to reality.”

Isaiah Oliver is the president of the Flint Board of Education.  He calls the new deficit number “devastating”

Lindsey Smith / Michigan Radio

Benton Harbor Area Schools has been running a deficit since 2007. A review in 2011 found financial stress, but the district was in the middle of making changes to save money. No emergency manager was appointed under a previous version of the law.

But State Superintendent Mike Flanagan says BHAS isn’t making enough progress on the deficit.

The deficit is $14.7 million. For perspective, its revenues this year were $31.8 million.

Steve Carmody / Michigan Radio

The Saginaw School District Board of Education approved a deficit elimination plan Monday afternoon.

The plan trims nearly $5 million from the district’s budget by closing three schools, laying off dozens of district employees, and other spending cuts. The district has a $6 million deficit.

Carlton Jenkins is Saginaw schools superintendent. He says it’s important for the district to have a “sustainable” plan to move forward – one "people can rally around that can rebuild Saginaw Public Schools.”

Steve Carmody / Michigan Radio

The Saginaw School Board is going down to the wire in considering a deficit elimination plan for the district.   The board must approve a plan today or risk losing state funding.

The Saginaw school board has been meeting since noon on a plan to close and consolidate schools, lay off teachers and support staff and cut union wages. Administrators say the plan could save about $4.9 million.

The district has a $6.1 million deficit.

Steve Carmody / Michigan Radio

Saginaw school board members will vote tomorrow afternoon on a deficit elimination plan.

The plan calls for closing two elementary schools, turning the city's two high schools into seventh through twelfth grade schools and laying off dozens of employees.

The board has been struggling for the past two weeks to come up with a plan to eliminate the district’s $6.1 million deficit. State Education officials are threatening to withhold the district’s March state aid payment unless the district delivers a workable plan by Tuesday.    

Steve Carmody / Michigan Radio

Saginaw school officials are spending today crunching the district’s budget numbers.

They have two days to come up with a deficit elimination plan that will do away with the district’s $6.1 million deficit over the next two years.

“We’re going to work furiously to make sure we’re going to put forward the best plan that can not only sustain Saginaw public schools but also help us rebuild in a way that would be very vibrant,” Saginaw School Superintendent Carlton Jenkins said after last night’s school board meeting.

Steve Carmody / Michigan Radio

Saginaw school board members will meet again Tuesday to discuss how to deal with the district’s multi-million dollar deficit.

Saginaw school board members have met three times in the past week to hash out a deficit elimination plan.

The most recent proposal called for laying off employees and closing three schools, including Saginaw High School.

Parents and students have attacked the plan and the board for considering it.

Steve Carmody / Michigan Radio

The Saginaw school board has put off a decision on the district’s financial future.   

A few hundred people attended a meeting last night on a controversial plan that includes closing one of the district’s high schools.

“My pressure’s going up just by the thought of Saginaw High closing,” said Saginaw city councilman Norman Braddock, which drew cheers from the audience.

Speaker after speaker berated school district officials for considering a plan that would merge two high schools, close two other schools and lay off many teachers and other school employees.  

Steve Carmody / Michigan Radio

The Saginaw school board is expected to vote tonight on a deficit elimination plan.

The plan calls for major changes to the district, which is facing a multimillion dollar deficit.

The state education department is threatening to withhold the district’s February state aid payment unless a new deficit elimination plan is submitted by Monday.

Steve Carmody/Michigan Radio

Flint school officials have until Wednesday to deliver a new deficit elimination plan to the Michigan Department of Education.

Flint School Board members tonight will review an agreement calling for a 19% compensation cut to school district employees. Specific wage and benefit cuts will be worked out during the next several months.

The wage and benefit concession was announced last week. The cuts would begin in July and last until 2018, when Flint School District officials project the district will have eliminated its multi-million dollar deficit.

Steve Carmody/Michigan Radio

Flint school district employees are facing a deep cut in pay and benefits.

Interim school superintendent Larry Watkins announced today that the district and its unions have reached a deal that calls for a 19% cut in compensation.

Specific details about cuts to wages and benefits are still being negotiated between the district and its unions. The cuts will take effect in July. 

Watkins says the cuts are a key component of the district’s deficit reduction plan that’s being submitted to the state next week.

Steve Carmody/Michigan Radio

The Flint Board of Education has signed off on a deficit elimination plan for the district.

The challenge now is sticking to it.

The Flint school district is $15.8 million dollars in the red.

To address that, school board members last night approved a plan that will cut jobs, close two elementary schools and trim other expenses.   The goal is to reduce the district deficit to zero by June, 2016. 

Antoinette Lockett is the board president. She says retaining students will be key.

User: Brother O'Mara / flickr

Detroit bankruptcy is topic of national conversation

Snyder, Detroit's emergency manager Kevyn Orr and Detroit Mayor Dave Bing appeared on Sunday morning talk shows yesterday to talk about filing bankruptcy for Detroit. Snyder said he will push to protect the retired city workers whose pensions are on the table. He said the bankruptcy filing included protections for retirees and urged them to remain calm. Orr said on "Fox News Sunday" that there are going to have to be "concessions." Bing on ABC's "This Week" said now that bankruptcy has been filed, leaders have to take a step back before making a decision on a federal bailout.

Flint school district faces more budget cuts

The Flint School Board will take up a Deficit Elimination Plan tomorrow night. The district is wrestling with a nearly 16 million dollar deficit. The Flint school district has made deep budget cuts but more cuts are likely if the district follows the plan to eliminate its deficit by June 2016. The Flint School Board has until July 31st to send its deficit elimination plan to the state.  

Lansing may end its relationship with St. Petersburg, Russia

The Lansing city council will be meeting tonight to discuss its sister city relationship with St. Petersburg, Russia. St. Petersburg recently passed an anti-gay ordinance and police there arrested people at an LGBT rally. Members say they want to send a message to St. Petersburg officials by canceling Lansing’s two decade sister cities relationship with the city.

Steve Carmody / Michigan Radio

The Flint School Board takes up a Deficit Elimination Plan Tuesday night.

The district is wrestling with a nearly $16 million deficit.

The Flint school district has made deep budget cuts, including laying off teachers and closing schools in recent years.

More cuts are likely if the district follows the plan to eliminate its deficit by June, 2016.

Larry Watkins is Flint’s interim School Superintendent. He insists the deficit elimination plan will not get in the way of the school district’s core mission.

(photo by Steve Carmody/Michigan Radio)

Flint’s Board of Education last night deadlocked on plans to close a half dozen schools next fall.   The board argued for more than five hours before giving up hope of agreeing on which middle and elementary schools to close. 

Board member David Davenport strongly opposed two different proposals which would have closed the districts three middle schools and three elementary schools, most on the city's northside.

"That's not fair to the children who are going to suffer," said Davenport, "Because they're going to be packed in or bussed somewhere else."

Several board members also expressed concerns with expanding the student populations at Flint's high schools to include 7th and 8th grade students.

Next year the school district is looking at a $19 million deficit.   Closing schools is critical for the district to stay within a deficit reduction plan submitted to the state.        A point that several Board of Education members repeatedly cited.

"We’ll just have to go back to see if we can craft it so that we get one more vote," said board member Harold Woodson after the meeting, "That’s basically what we need.  One more vote to get it moved forward so…..but it has to happen.”

And it has to happen quickly.  

The Flint Board of Education will soon have to pass a budget plan for next year.   That plan will require decisions to be made as to which schools will be open this fall. 

One member of the public told the board members that they were in a "pickle".   A statement none of the board members appeared to disagree with. 

Frank Juarez / Flickr

Flint school board members have started weighing their options for closing schools later this year.    They didn’t like the options they were given last night.

The two options presented to the school board last night included closing three elementary schools, one or two middle schools and possibly a high school.

School board members were very much against one proposal that included mixing middle schoolers and high schoolers.  

The Flint School District will deliver its deficit elimination plan to the state today. But a long-time critic doubts the district’s administration will be able to make the plan work.     

State law requires local units of government that finish their fiscal year with a deficit to send a ‘deficit elimination plan’ to the Treasury Department. 

Michigan Democratic Senator, Carl Levin, has proposed a 7-point plan to reduce the federal deficit by at least one trillion dollars over 10 years. His proposal comes amidst discussions within the special bi-partisan subcommittee charged with balancing the federal budget. Several of the points in the plan deal with closing tax loopholes that benefit corporations and wealthy Americans. Is it possible to move those points of the plan forward in the current political climate?