1. Metro schools brace for cutbacks Karen Bouffard / The Detroit News April 10, 2006 http://www.detnews.com/apps/pbcs.dll/article?AID=/20060410/SCHOOLS/604100373

2. Examples Kids in some Metro Detroit school districts can expect larger classes, shorter school days and fewer teachers, services and course choices next fall. Now, in the midst of finalizing their budgets for the 2006-07 school year, officials from Woodhaven to Royal Oak and Clinton Township say an anticipated $225-per-pupil increase in state aid isn't enough to meet increasing health, retirement and energy costs -- or to forestall another round of teacher layoffs, school closings and other cuts. The boost, pending in the Michigan Legislature, would bring the minimum grant to $7,100 per child. "People may be getting the notion that schools are getting an increase, but it's so small. It's not even going to cover our increases in retirement and health care costs," said Royal Oak Superintendent Thomas Moline. "We're going to fall short by $1.5 million, and that will come from our (savings). "We built for the rainy day, and it is now raining."

3. More examples School closings –Livonia will close seven elementary schools and convert two more elementaries and one middle school to buildings for fifth- and sixth-graders. –Pontiac will close four schools and lay off 214 teachers. –Royal Oak will consolidate two high schools into one; Dondero and Kimball high schools will close, and Kimball will be refurbished and reopen next fall as the new Royal Oak High School. –The Redford Union school district will close Beck Early Childhood Center and Keeler Elementary. –Taylor will close Treadwell Elementary School. Pink slips –Redford Union: Up to 40 employees, including up to as 20 teachers. –Dearborn: 40-70 teachers. –Oak Park: 10 department chairs will go back to being teachers. –Utica: 123 layoffs, including 40 teachers. –Royal Oak: Will reduce teaching positions by about 20, some through attrition, and eliminate some audio-video techs, paraprofessionals, secretaries, custodians and lunch monitors.

4. Proposal A Administrators blame their money troubles on Proposal A, adopted in 1994. It shifted the financial burden for school operations from property taxes to the state sales tax. Residents can vote to raise their property taxes to build schools, but most day-to-day costs of operating schools are paid by the sales tax. "The state has refused to adequately fund education, and these are the consequences of those choices," said Hilde Corbett, spokeswoman for Utica Community Schools. Corbett said. "Over three years, we have cut $19 million out of the operating budget. We've already had one round that did not involve classroom teachers; this round will. "What people fail to understand is we cannot raise money locally. We are completely dependent on the state for all of our funding." In Utica next fall, high school students will have 6 class periods a day instead of 7 as part of an effort to close a projected $15 million deficit. Utica seniors will be able to graduate with 22 credits, instead of 24. The district of more than 29,500 students will also eliminate 123 staff positions, including some teachers, and dip into its savings account.

5. Schools have to share pain Not all are sympathetic to the schools' money troubles. The auto industry and other private-sector businesses are cutting payroll and spending, critics say, and schools should not expect to be spared financial pain. Michigan ranked 15th among the states for per-pupil spending during 2002-03, according to the latest data from the National Center for Education Statistics. The same year, it ranked fourth in average teacher pay: $54,166, according to the National Education Association. "(Michigan's) expenditures per pupil have more than doubled since 1970, when adjusted for inflation (and) state test scores have remained flat," said Ryan Olson, education policy director for the Mackinac Center for Public Policy, a Midland-based conservative think tank. "This is evidence that we can't buy our way to better education."

6. The Economics Are schools like businesses? –Must balance budgets –Can’t go out of business Schools are funded on per/pupil basis –Suppose you have a school with 6 grades (K-5) and two classes w/ 25 students in each grade  300 students. –Suppose enrollment drops by 5% 5%, here, equals 15 students  about $100,000. What do you do?