Bleak Financial Situation or Golden Opportunity?

The Sun Post reported this week that “District 281 faces (‘bleak’ in print, or ‘dire’ online) financial situation.” Despite passing a referendum in 2008 and closing three schools, our district like others around the state are looking at serious budget cuts. 281 has to cut $5.7 million. The state may be dipping into districts with funds and Robbinsdale might be one source to borrow about $2.4 million. Remember, borrowing means it will be paid back eventually.

Dr. Sicoli advised the school board to “begin thinking about areas in which they are willing to make budget reductions.”

Turn to the editorial section in the Sun-Post and you’ll find an editor there making valid points on reform. Paul Wahl wrote,

The reason we need reform is because we’ve reached the end of what can be cut. It’s no longer a matter of doing more with less, it’s doing less with less.

…Reform might mean eliminating a department that isn’t state or federally mandated.

Think of the freedoms and money districts would have by chopping those unfunded mandated programs!

For schools, reform often centers around choice – charter schools, open enrollment and similar plans. Those many have started their lives as reform, but it’s hard to argue too strenuously either represents reform in light of today’s education challenges.

We’ll buy the argument with open enrollment, as we’ve seen the issues with security and mobility expenses “The Choice is Yours” program added to the budget – despite getting money ($12,000) for each student who enrolled. However, a charter school would attract district students back and neighboring students. And, a charter school decision is our choice – we set the rules, unlike CIY which was a forced government ruling from a lawsuit.

But what comes after the last budget cut finally severs the bone? When and how are we going to make the tough decisions that shape what schools and cities will look like 10 years from now? When do we start the conversation?

The divestiture committee met this week, and we’ll post updates. For us, selling unused properties is a glaring golden opportunity to get funds in. Allow a charter school here and bring back fleeing students going to other districts. Be brave, district leadership! Think outside of the box, beyond 2010, and government and union strong-arming which has drained too many district, city and state coffers. The choice is yours.

Check out Give2Attain’s article with links to the spreadsheet and comments:

Budget Reduction Announcement
Budget Adjustment Worksheet

Some things to remember when looking at the linked worksheet:

• $1 million = ~83 student drop at ~$12,000 per student (09/10)
• $3.6 million = ~300 student drop at ~$12,000 per student (10/11)
• The 10/11 student reduction is an estimate which could easily vary higher or lower. (ie guesstimate)
• This is why schools are interested in enticing the students back to the district, or pulling open enrollees into the district.
• This is variation across ~12,000 students, so though the numbers are big, the percent variation is fairly small. (300 kids = 2.5%)
• $5.7 million gap = $5.9 million fund bal goal – $ .2 million forecast
• As DJ pointed out: apparently ~$3 million of the gap created when the latest contract was signed. (G2A S and L) Now is this labor or mgmts fault… Either way, all of us will pay in the coming years.
• This is operating dollars, not capital… Selling facilities will not raise funds that can directly offset this. Though, it would result in reduced maintenance, heating, etc expenses.