Shifting K-12 Funds Would Devastate School Districts, Officials Warn

Several prominent local officials urged the state to live up to its promise of revenue sharing this week during a moderated discussion about school funding entitled Passing the Buck at in Oak Park.

The panel included Superintendent Michael Simeck; BSD Deputy Superintendent of Finance, Facilities and Operations Larry Gallagher; Huntington Woods City Manager Alex Allie; Berkley City Manager Jane Bais-DiSessa, and Berkley Finance Director David Sabuda. Judge David Gubow of 45-B District Court in Oak Park moderated the conversation.

The panelists aimed to provide the audience of approximately 50 people, peppered with school employees and area officials – a surprisingly low turnout, participants noted – with an overview of Proposal A. The law went into effect in 1994 with the goals of equalizing per-pupil funding throughout the state and providing a guaranteed source of revenue for school districts.

Before the law, school districts largely relied on property taxes for funding, which created significant disparities, Allie explained during a slide presentation. For example, he said, in 1993, the Berkley School District collected 44 mills, which equated to $4,850 per pupil. The Birmingham School District, meanwhile, collected 28 mills, which brought in $9,700 per pupil.

"I don't think there's anybody who would conclude that is a fair system," Allie said. "And that's not even an extreme example."

To reduce districts' dependence on property taxes for funding, some of the burden was shifted to the state sales tax, which was increased from 4 percent to 6 percent. In turn, under Proposal A, the state was tasked with providing a guaranteed source of K-12 funding via revenue sharing to districts.

The panelists Monday night took issue with Gov. Rick Snyder's proposed budget, which they said would shift $195.9 million worth of dedicated K-12 funding to community colleges and $699.7 million of funding to higher education, leaving a projected year-end balance of $95.8 million.

"It never was the intention for the school aid fund to be used for anything other than K through 12," Gallagher said. "(The fund balance) would be healthy if left alone."

Meaning, if funds were not diverted for community colleges and higher education, the school aid fund's projected year-end balance would be $991.4 million and K-12 education would not be facing such steep cuts.

The governor's proposal, coupled with increased costs for health care and retirees, could cost the Berkley School District approximately $1,000 per pupil, Gallagher said. "The Berkley program overall would certainly be devastated, if not decimated, if forced to absorb these cuts," Gallagher warned.

Allie echoed his sentiment about the intent of the law, saying that never before in the past 15 years has money been diverted from the school aid fund to community colleges and universities.

"This is a tsunami for your city and your school district," Superintendent Simeck said. "We cannot avoid cutting programs and course offerings if this comes to pass. This is a clear violation of the intent of the law we voted for in 1994."

While schools fight for a shrinking pot of money, Simeck noted the current state budget of $19 billion includes $9 billion for tax cuts and tax breaks for businesses. "Corporations and small businesses are sitting on more cash than at any time in history," Allie said. "... Looking at it historically, the economic policies of the state of Michigan have been to stimulate the economy through tax cuts. And, if this strategy works, we should have one of the healthiest economies in the country."

In order to prevent the proposed changes from being approved, the panelists strongly urged community members to contact state officials, including:

• Sen. Vincent Gregory, 517-373-7888, senvgregory@senate.michigan.gov
• Sen. John Pappageorge, 517-374-2523, senjpappageorge@senate.michigan.gov
• Rep. Ellen Cogen Lipton, 517-373-0478, ellenlipton@house.mi.gov
• Gov. Rick Snyder, 517-335-7858, rick.snyder@michigan.gov

Tracie Smith of Oak Park, who has three children, one of whom attends school in the district, said she plans to contact the lawmakers. "I wanted to come out tonight and find out how I can get involved and get a better understanding of Prop A, rather than sitting back and letting it happen. I'm thinking colleges can raise tuition and it's a choice for a person to go to college, but K through 12 children don't have a choice," she said.

Smith plans to share the information she learned with other parents. "It's so small to call or send an email and I figure I can do that," she said. "My daughter likes her school and she has a lot of opportunities. She's a very bright girl and the district reinforces that."

The governor has instructed the Legislature that he wants the budget done by the end of May, so the clock is ticking for those who would like to voice their opposition.

"The worst thing we foresee that could happen is that it won't be until we start saying this and this and this has to go that we'll start hearing from parents," Berkley School District Communications Supervisor Shira Good said. "And then it will be too late."