Plymouth-Canton Schools Face Possible $17 Million Shortfall

Gov. Rick Snyder's proposed budget could cost Plymouth-Canton Community Schools $8.8 million.

That's one of several fiscal challenges Plymouth-Canton's school board members heard about during their first budget workshop meeting, held Wednesday evening, which outlined a potential $17 million overall deficit.

James Larson-Shidler, the district's assistant superintendent of business services, presented what is a starting point for making cuts in the districts annual budget, which this year was $162 million.

“This is based on the assumptions from the governor’s [Gov. Rick Snyder] office, and that’s good because we usually don’t have the data at this time,” Larson-Shidler said.

Larson-Shidler's scenario includes:

• An $8.8 million reduction in state aid, the total of Snyder's proposed $470-per-pupil funding cut.
• A $3.4 million commitment to accommodate a 3.8 percent increase in pension contributions.
• Paying $2.4 million to cover higher healthcare and insurance fees.
• Paying .6 percent more for Social Security and Medicare benefits, or $270,000.
• Paying $500,000 for salary increases.
• Paying an additional $500,000 in health insurance costs associated with allowing 26-year-olds to remain on their parents insurance as part of the Health Care Reform law.

The good news, he said, is that by planning ahead, the district saved $200,000 by purchasing rather than renting photocopiers and saved another $400,000 by purchasing natural gas in advance.
 
Areas to cut

District officials are already ranking 34 areas that could potentially be cut, including building utilization, staffing levels, transportation.

During the meeting, board trustee Nancy Eggenberger emphasized the importance of getting community input on such decisions because, she said, the cuts are "huge."

Judy Mardigian expressed concern about enrollment dropping, telling Larson-Shidler and others in the room she's hearing about more charter schools possibly opening. Fewer students enrolled as Plymouth-Canton students would translate into less state funding.

Board President John Jackson said after the public meeting that there are likely to be few sacred cows.

“Everything is on the table, absolutely everything,” he said. “We’re going to do what we need to do to remain solvent, as long as it doesn’t affect student achievement.”

The Plymouth Canton School Board’s next budget workshop will be held at 6 p.m. on Tuesday, with another set for Thursday at 6 p.m., which will include time for public comment.

All the meetings will be at the district officers in the E.J. McClendon Center, 454 S. Harvey St., Plymouth.