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Published on Ann Arbor Parents for Schools (http://www.aaparentsforschools.org)

District finance presentation

By Steven Norton
Created 3 May 2007 - 1:00pm

Thanks to parent Ed Vielmetti [1], we have a copy of the slide show that Robert Allen (Deputy Superintendent of Operations, AAPS) gave at the community meeting at Burns Park two weeks ago. Click here to see a web version of the slide show [2], albeit without Mr. Allen's commentary. Let's talk about this!

I think it's fair to summarize his main points as follows:

  1. The district has been facing a continuing revenue squeeze as
    • the foundation allowance from the state has failed to keep up with inflation,
    • the number of pupils has leveled off (state funding is # of pupils times foundation allowance),
    • and retirement contributions (set by the state) and health care expenses have increased much faster than inflation.
  2. The district has been paring back the budget for several years, trying not to affect instructional programs.
  3. Salaries and benefits make up nearly 90% of the districts expenses, so substantial savings can only come from there.
  4. District officials can no longer protect instructional programs from cuts.
  5. Options to increase revenue are limited:
    • Current law prevents us from raising local taxes to fund school operations.
    • The only semi-local tax option would be for a county-wide "enhancement" property tax millage, which would have to be for a specific purpose (like technology) and would have to be agreed upon, and revenues shared by, all school districts in the county. Ann Arbor would likely be a net contributor to other districts.
    • We can try to attract students to AAPS schools from private and charter schools by offering desired programming.
    • Fundamental changes in how schools are funded requires action by the state Legislature.
  6. The district is looking at more ways to economize, but if we want to invest more in our schools, parents need to put pressure on the Legislature.

In the discussion that followed, there was a lot of concern that more economies could be found without cutting teachers and increasing class sizes. I think we agreed, however, that there was not a whole lot of "fat" to cut, and that acceptable economy measures were limited. In other forums, people have raised questions about larger issues, such as the new high school. Some proposals, such as moving Community High to the new building, might also allow AAPS to attract more students into the district (indications are that many students who are unable to attend Community end up going to school outside the district).

None of these things, in my own view, change the fact that our state needs to change direction and begin investing in public education. Local cuts, while important, will not solve the problem (unless we are willing to accept severe program cuts). But changes in state funding are not likely to make Ann Arbor's budget problems go away.

Take a look at Robert Allen's presentation materials , and let's discuss:
Has the district done enough?
Are there other ideas we haven't considered so far?
Where should the axe fall, if it must?
What are we willing to accept?
What can we do about it?


Source URL:
http://www.aaparentsforschools.org/node/62