School board to discuss $2.4 million cut
Jackson council recommends reduction in school spending plan
BY DAVE BENJAMIN
Staff Writer

Jackson Board of Education members will meet on June 4 to decide if they want to accept a $2.4 million reduction in the 2007-08 school budget or appeal the Township Council's recommended cut to the state commissioner of education.

In a special meeting held May 21, the council reduced the tax levy for the coming school year from the $65.1 million that was defeated by voters in the April 17 school election to $62.7 million.

The total budget for the 2007-08 school year in Jackson will be $130.4 million. The board had proposed a budget of $132.8 million.

If the tax levy is reduced as the council has directed, the school tax rate in Jackson will increase by 4.75 cents per $100 of assessed valuation - from $2.23 to $2.275 per $100 of assessed valuation.

Under the budget proposal put forth by the school board, the tax rate would have increased by 8.75 cents per $100 of assessed valuation - from $2.23 to $2.31 per $100 of assessed valuation.

What does this mean to a Jackson taxpayer?

It means that if the tax rate rises by 4 cents, the owner of home assessed at $150,000 will pay $3,412 in school taxes in 2007-08, which is up from $3,345 paid in 2006-07, but not as high as it would have been with the full 8.75-cent increase ($3,465) in place.

The owner of a home assessed at $300,000 will pay $6,825 in school taxes in 2007-08, which is up from $6,690 in 2006-07, but not as high as it would have been with the full 8.75-cent increase ($6,930) in place.

The owner of a home assessed at $400,000 will pay $9,100 in school taxes in 2007-08, which is up from $8,920 in 2006-07, but not as high as it would have been with the full 8.75-cent increase ($9,240) in place.

Several people walked away from the May 21 special meeting thinking the cuts were not enough, while council members were not exactly happy about being caught in the middle of the school budget situation.

By law, the municipal governing body must review a school budget if the budget has been defeated in the school election.

"We knew [the school board ] would not be happy with whatever would be cut," said Councilman Scott Martin, who along with Councilwoman Emily Ingram are the council's liaisons to the school board. "We did what was best and it was a fair analysis of the budget. We're just a different set of eyes looking at it."

Martin said he has the utmost respect for everyone on the school board and said he and Ingram meet frequently to cover a variety of matters.

"Our responsibility to the taxpayers and residents of Jackson was to prepare a thorough review of the school board budget," said Ingram. "Along with Eugene M. Farrell, (of Hutchins, Farrell, Meyer and Allison), our review included actions which do not jeopardize the school board's fiscal integrity nor impact the school board's ability to provide a thorough and efficient education."

Ingram said the council's initial review of the school board's Fiscal Year 2008 budget reveals that even with substantial cuts, there are systemic problems which must be addressed so that the board is not in a similar financial situation in the future.

The councilwoman listed several areas that should be addressed, including health benefits, increased transportation costs, growth in Jackson and the major problem of the lack of state aid to Jackson.

The council identified what it said would be additional revenue, including potential additional surplus, $475,000; anticipated child care fund balance, $1 million; and anticipated additional interest earnings, bond proceeds and cash balances in capital projects, $150,000.

Cuts coming from appropriations included capital outlay, $270,873 and fringe benefits that could be charged to the child care fund, $76,500.

Additional cuts were adjustments which included several line items: Other purchased service teachers, $50,000; tuition to other LEAs outside the district, $25,000; tuition to private schools for handicapped, $50,000; salaries, $50,000; energy in the form of heat and electricity, $150,000; other employee benefits, $50,000; and contracted services, $50,000.

If the school board members accept the recommended $2.4 million reduction in the tax levy they may make the cuts where they deem necessary. If they do not accept the council's recommendation they may appeal to the state commissioner of education.

On April 17, voters defeated the board's proposed tax levy by a count of 3,178 no votes to 1,811 yes votes.

During the public portion of Monday's meeting, school board member Martin Spielman said he had no intention of speaking until he heard there was a difference in what he was told at a meeting between the board's liaison committee, the township liaison committee and the auditor.

"I hope the township takes it upon itself to have an auditor examine why they have a $10 million surplus after raising taxes last year," Spielman said, "but that's not the reason why I chose to speak."

Spielman said people have to realize it costs several million dollars to transport and to educate some pupils at schools outside of Jackson.

"Our estimate is between $4 million and $6 million or even higher to bus children who are educated out of our district," he said.

Spielman said some people have suggested that the district can do things to reduce that expense, but he said administrators have to follow laws and procedures that are mandated by the state.

"We have a state that does not fund education equally" among all school districts, Spielman said.

Referring to a recent meeting between the board and council liaisons, Spielman said when he left that meeting an amount of $2.1 million was what was recommended to be cut from the tax levy, not more than $2.4 million that was recommended to be cut on May 21.

"It's always easy to look at a budget and nickel and dime [the cuts]," he said. "It's easy to just say [cut] transportation, but look at the costs of gasoline and fuel oil. The new high school came on line. We're still not sure what the energy costs for the new high school are."

Spielman said it's easy to talk about what the projected savings can be, but he said the school board members are dealing with children and the people who educate those children. He said the council members did a disservice by recommending a higher amount to be cut from the budget than what he believed the recommendation would be.

Council President Angelo Stallone said when Jackson Liberty High School went on line the board never had a cost analysis.

Farrell said the difference was due to a schedule that was not determined at the time of the liaison meeting.

"Mr. Spielman, it really upsets me that you stand before this council and myself," Mayor Mark Seda said. "The shame is if there had been some diligence on your own budget this would never be a discussion. You knew [budget limits] would be in place. We're going to have to deal with the same cap next year."

Seda said the council members and the auditor did as much as they could in a short period of time to arrive at the recommendation that was made.

"But had you had an opportunity to explain to the residents your budget and had you given the residents of Jackson a full explanation and disclosure of what really happens in a school budget, [then] maybe they would have had a better understanding and maybe we won't be sitting here next year looking at numbers to make cuts," Seda told Spielman.

Seda said there is a need for more money to help fund education and said people have to work to get the money from the state.

"The shame is for you to come up here and blame the council for $300,000 (the difference between a $2.1 million and $2.4 million reduction) when you knew several teachers, 22 of them, prior to, because you knew the budget cap was in place. So I take offense to that and ask for an apology," Seda said.