Imlay City Schools face $1.6 million budget shortfall for 2012-13 - from the Jan 29th Lapeer County Press

[William Gavette]

                     BY PHIL FOLEY 810-452-2616 • [e-mail]

IMLAY CITY — Imlay City Community Schools Superintendent Gary Richards, like superintendents around the county and across the state, is holding his breath in anticipation of Gov. Rick Snyder’s Feb. 9 announcement of his budget proposal for 2012- 13.

Amy Swantek, the district’s business services director, told board members at their meeting Monday that the loss of 95 students this year has resulted in a $400,152 drop in revenue.

More troubling for the coming budget cycle, she said, is the loss of $175,000 as a result of declining enrollment and $295,000 in federal Edu-jobs funds that won’t be renewed. Swantek cautioned there is also $421,000 in state funds awarded to the district last year that she can’t be sure the district will see again and the district will be required to increase its payments into staff retirement funds.

Altogether, she warned, “even if we can keep our expenses on an even keel...we’re still looking at a shortfall projected at

$1.6 million.”

Swantek said if the district tries to maintain its existing budget without no further concessions from its workforce, it would push the district’s fund balance down to 4.1 percent of the total budget.

Swantek urged board members and other Imlay City area residents to contact their legislators, noting the state cut business taxes by $700 million last year.

The board accepted its budget committee’s recommendation to dip into its fund balance to make up for the revenue loss in this year’s budget.

Swantek referred to the coming budget cycle as the cliff that Richards has been warning the district about for the past couple of years.

“The good news in all of that,” observed board president Sharon Muir, “is that we don’t have to deal with that tonight.”