Schools of Choice program expanding in UCS

Utica Community Schools will expand its Schools of Choice program beginning with the 2009-2010 school year, allowing non-resident Macomb County students to enroll in any of its 40 buildings, provided there is space available.

The Board of Education approved the expansion at its Feb. 9 regular meeting. This year, 702 students in kindergarten through ninth grade are enrolled at 13 of the district’s school. Schools of Choice has been offered for the past six years and began with just five buildings.
“We see this as an opportunity for our school district as well as the students we enroll,” said Dr. Christine M. Johns, superintendent of schools.  “We can provide a comprehensive academic and co-curricular program for students, while offsetting some of the enrollment decline we have experienced over the years.” Student enrollment is critical to Michigan’s public schools, since operating funds are tied directly to the number of students attending, she said.

The enrollment period for 2009-2010 will be from May 1-15 and any student from kindergarten through 12th grade living within the boundaries of the Macomb County Intermediate School District (MISD) is eligible to apply. Enrollment applications will be available online or by calling 586.797.1120.

Plan to reduce spending for 2009-2010 school year includes employee layoffs, other reductions

Click here to view the recommended 2009-2010 budget

After assessing the continuing erosion of operating revenues, and in light of potential flat funding from the state, the Utica Community Schools Board of Education has directed the administration to develop a plan to reduce spending by more than $6 million for the 2009-2010 fiscal year. Reductions are expected to include employee lay-offs and other cost avoidance and containment strategies.

“This was an extremely difficult recommendation for the Board to accept,” said Schools Superintendent Dr. Christine M. Johns. “But the state and the worsening economy have placed us in this situation, despite dramatic spending cutbacks totaling $42 million the district has made over the past seven years.”

The Board issued the directive after reviewing a report outlining budget projections for the coming fiscal year at its regular meeting Tuesday, May 26. Michigan’s public school districts are funded by a blend of several revenue sources, with the largest share from sales and use taxes, income tax and property taxes. All three have been hard hit with the sharp decline of Michigan’s economy beginning in 2001 and escalating in 2008-2009.

During the 2008-2009 fiscal year alone, the state reports a funding shortfall equal to approximately $268 for every student in Michigan’s public schools. In Utica Community Schools, this reduction equals some $7.8 million in lost revenue. The state shortfall for 2009-2010 is estimated to increase to about $590 per student in Michigan, or about $17.3 million for the district. Over that period, the total loss of state revenue to UCS is estimated at more than $25 million.

To stem the loss in revenue, the state has announced its intention to utilize some federal funding through the American Recovery and Reinvestment Act. Dr. Johns pointed out that funding from the Act is on a one-time basis and will not sustain the district for a longer period of time.

UCS currently receives about $7,800 in state funding for every student enrolled. Heightening the complex financial situation is the fact that enrollment in Utica Community Schools has stabilized at about 29,500 students and is beginning to decline. As enrollment declines, funding from the state is further reduced.

The recent approval of a $112.5 million bond issue will not help the district stem the pending shortfall in the operating budget. By law, school districts are prohibited from using bond funds for day-to-day operations such as employee salaries, health benefits, utilities and maintenance.

About 84 staff positions are projected to be cut for next year, which brings the total reduction to 360 from within all employee classifications over the past seven-year period. Other means of addressing the shortfall will include an exploration of methods to contain costs and avoid expenditures.

Included in the review will be additional use of the district’s fund equity, which has been utilized to balance the loss of revenues for the past several years. This continued strain on the fund equity at increasing levels will result in a cash flow problem, forcing the district to borrow in anticipation of state revenues. Borrowing for school operating funds will become an issue because school districts are required to submit balanced budgets in July of the fiscal year, while the state legislature does not typically adopt its budget until October, when school aid is allocated to districts for operations. Borrowing operating funds would be a further financial burden since the district would be required to pay interest on those funds.

This is not the first time the district has reduced spending. A total of $42 million has been eliminated from the district’s budget since 2003-2004, as it became apparent that the state is not able to meet its financial obligations to Michigan’s public schools.

But even the additional reductions being contemplated may not be enough, Dr. Johns said. “Our concerns continue into fiscal year 2010-2011. We have done the responsible thing over the past six years to meet our obligations and balance the budget. And, while both years (2009-2010 and 2010-2011) will be backfilled by the Recovery and Reinvestment Act, these are one-time dollars upon which we have to build long-term budgets.”

The district administration is expected to report to the Board at its June 8 meeting, when the proposed operating budget for 2009-2010 is presented.

District audit reveals strong fiduciary responsibility; overall erosion in state funding

A review of the Utica Community Schools 2007-2008 budget has received the highest rating from the independent firm conducting the year-end audit.  But despite high marks for fiduciary responsibility, the audit also revealed an overall erosion in state funding that, if not addressed, could negatively impact the district in the future.

“If we were giving a letter grade, the district’s financial standards would rate an A,” said Eric Formberg, CPA and director of Plante Moran, the firm conducting the audit.

Michigan law requires an annual audit of school district revenues and expenses.  Formberg and his firm provided the Board of Education with an overview of the audit at its regular meeting Monday, Oct. 13.  And, despite increasing auditing standards, Formberg said the district continues to meet those standards.

Revenues for fiscal year 2007-2008 were $255,922,221.  Seventy-six percent of revenues came from the State of Michigan, and represents a mix of monies that includes the six mills property tax homeowners pay to the state, state sales tax and other dedicated sources of revenue.  Another 17 percent comes from local sources, primarily business and non-homestead property tax.

A total of 98 percent of $259,093,372 in expenditures were spent on instruction and related support systems.  Direct classroom expenses actually rose by one percent over 2006-2007, to 64 percent of expenditures.

Broken down on a per pupil basis, the district revenues were about $8,655, somewhat less than the $8,763 in expenditures.  The difference was made up by using a portion of the district’s fund equity, or reserve.  Balancing the district’s operating budget has required use of the fund equity for the past several years.  As a result, the fund equity was reduced from 16.1 percent of expenditures in 2006-2007 to 14.6 percent in 2007-2008.

Next year (fiscal year 2009-2010), the fund equity is projected to decline to just under 12 percent, if state funding continues to remain flat, Forberg said, adding it is prudent that districts maintain a reserve in the event of an emergency.  While difficult, he said, a fund equity can help districts maintain operations until state aid is received, generally after Oct. 20 of each year. If there is no reserve, school districts, which are required by law to finalize their budgets by July 1 of each year, could be forced to borrow funds to operate until they receive state aid.

“A fund equity provides some liquidity to pay your bills and fund programs in place,” Forberg said.

Board President Dr. Carol Klenow spoke about the future of the district’s financial outlook.  Balancing the budget will become more difficult in future years, she said.

“We are experiencing rapid funding changes because our state legislature and the executive leadership have failed to meet their obligation to school districts over the past six to seven years,” Klenow said.

Already the district has reduced its operating costs through initiatives like property sales, early retirement incentives, program reductions, pay-to-participate and other fee increases and the elimination of more than 270 jobs, Klenow said.

The Board will continue to make “thoughtful” decisions about using the district’s fund equity, because having it provides the ability to take reasonable actions when unforeseen situations present themselves, she said.

The Board will also concentrate on three areas in which to manage the ongoing budgetary issues:  energy management, fuel consumption and health care, Klenow said.

“I am very proud of our employees, our parents and our community for joining us in a partnership of shared focus and commitment,” Klenow said. “We will continue to remain thoughtful in our management now and in the future.”

Severe reductions in state operating revenue and an anticipated decline in enrollment have prompted the UCS Board of Education to establish a citizen-based Facilities Study Team (FST)

Despite an annual audit stating the district has continued to manage its budget functions responsibly, severe reductions in state operating revenue and an anticipated decline in enrollment have prompted the Utica Community Schools Board of Education, at the recommendation of Schools Superintendent Dr. Christine M. Johns, to establish a citizen-based Facilities Study Team (FST).

The FST, which will review building use in the state’s second largest district between now and March, could recommend a variety of options, including the closing of one or more schools, beginning in the 2010-2011 school year.

“To sustain such a financial loss this far into the school year, we must consider all options available to us,” Johns said.  “One such option is the efficient use of our school buildings.  Our enrollment is beginning to decline because more of our students are graduating 12th grade than are enrolling in kindergarten.  Despite a significant Schools of Choice program, some of our schools are no longer at peak operating capacity.”

In a report to the Board at its regular Oct. 26 meeting, the district’s unofficial enrollment for 2009-2010 was set at 29,311, down from its peak of 29,641 during the 2006-2007 school year.  Enrollment is expected to continue to decline, bottoming out at 28,727 students in 2013-2014.

Enrollment losses would have been even greater without a significant Schools of Choice program, which allows students living in Macomb County to enroll in the district. This school year alone, more than 800 students are enrolled in the district as Choice students.

The decision was also prompted, in part, by Gov. Jennifer Granholm and state legislature’s combined move to cut funding to Michigan’s public schools by $292 per student for the 2009-2010 school year, a loss of some $8.6 million to the school district.  The loss to UCS would have been even higher -- $16.8 million -- without the state’s application of federal stimulus dollars to partially offset its deficit in the state aid fund.        
State revenues make up nearly three-quarters of the district’s annual budget, making the latest reductions difficult to absorb nearly four months into the current fiscal year.

The cut comes in addition to the nearly $14.3 million in expenditures over revenues the district has balanced using its fund equity.

During its annual financial review of district revenues and expenditures, Donna Hanson, CPA, of the independent auditing firm Plante Moran, complimented the district on its business practices.  Her report to the Board was also presented at its Oct. 26 meeting.                      
“(The result of) our review allows us to give the district an ‘unqualified opinion,’ the highest form of assurance that the books and financial records of the district are of the highest quality,” Hanson said.  “If we were giving the district’s financial management a letter grade, it would be an A.”

During the 2008-2009 fiscal year, the district reported expenditures of some $264.8 million and $258.5 million in revenues.  Nearly three-fourths of expenditures came in the categories of instruction and instructional support.

Over the past seven years, as the economy softened, the district has reduced spending by more than $42.3 million, including the elimination of more than 360 employee positions.

“These numbers, coupled with the loss in enrollment, have pointed out our need to review our building use,” Johns said.  “It’s a difficult decision, but a responsible one.”

The citizen-based Facilities Study Team will review the efficient use of district school buildings and recommend building use options beginning with the 2010-2011 school year.  The recommendation could include potential school building consolidation.

“It is extremely important to note that a review of school use is not under taken casually,” Johns said.  “However, with the current budget climate in Michigan and its negative impact on public school districts, any opportunity to reduce costs must be considered.”

In order to garner community input throughout the study process, the Board has established an operating framework intended to provide an opportunity for a community-based process. 
Johns has already invited several members of the community to participate in an Ad Hoc Selection Team, whose purpose was to develop the criteria for FST membership, and the application process.  Both are posted on the district’s website, www.uticak12.org. Applications will be due back by Nov. 12 and the Selection Team will make its selection of FST members on Nov. 16.

The FST will be composed of parents and representatives from the community with diverse backgrounds. It will review information from a variety of sources, and develop a school building use recommendation.  This work will be accomplished in meetings between December 2009 and March 2010.

The Superintendent will present the recommendation to the Board of Education. If the recommendation includes school consolidation, the Board could seek further input through a series of public meetings with parents at affected school(s).

Any change in school use would be decided by the Board of Education at a regular meeting.

“This is all very complicated, because it touches on so many issues,” said Board President Dr. Carol Klenow of the district’s efforts to manage the financial challenge while still providing a high-quality educational program to its 29,000 students.  “But it will help to have many minds to review the data.  This study is important, particularly from the standpoint that it becomes a community imperative.”

Staff, students and parents of UCS work together to provide for others in need during the holiday season

As they have every year, the staff, students and parents of the Utica Community Schools work together to provide for others in need during the holiday season.  Charitable contributions include:

Elementary Schools

Beacon Tree –
Shelby Lions Christmas Basket Program
Hat and Mitten Tree
Toys for Tots
Pennies for Power for T.H.A.W. (The Heat and Warmth Fund)

Beck Centennial –
Kiwanis Food Drive
Giving Tree
Mitten Tree
Stockings for Soldiers
Cookies for Cows
Toys for Tots

Browning –
Toys for Tots
Kiwanis Canned Food Drive

Burr –
Humane Society
Leukemia and Lymphoma Society
Kiwanis Food Drive
Hat and Mitten Tree
Toys for Tots
St. Jude Children's Hospital
Salvation Army Bed and Bread
Blood Drive 

Collins –
UNICEF
Kiwanis Canned Food Drive
Adopted a family – Detroit Children’s Hospital
Tiny Paws Animal Rescue Giving Tree
Muscular Dystrophy Association
St. Jude Children’s Hospital

Crissman –
Toys  For Tots
Shelby Lions Canned Food Drive
Mitten Tree
Assisted three needy families

DeKeyser –
Manna Community Meal
Sterling Heights Kiwanis
Mitten Tree for Turning Point
Cash contribution for Turning Point
Susan Karmanos Cancer Center

Dresden –
Assisted 10 needy families
Hat and Mitten Tree
Holiday Grams to needy families

Duncan –
Giving Tree
Shelby Lions Club Canned Food Drive
Mittens, hats, and gloves for Turning Point residents
MCREST
Aided underprivileged children in the Metro Detroit area

Ebeling –
 Hat and Mitten Tree 
Kiwanis Canned & Dry Food Drive
Utica Lions Club
Assisted needy families
Canned food drive to benefit Lighthouse

Ewell –
Toys for Beaumont Hospital
Quilts for Shelby Nursing Home
Toys for Tots
Shelby Lions Canned Food Drive
Tree of hope for abused and homeless children
Gift cards for the needy

Flickinger –
Lions Club Food Drive
Salvation Army New Toy Drive
Mitten Tree

Graebner –
Giving Tree
Kiwanis Food Drive
Toys for Tots

Harvey -
Kiwanis Canned Food Drive
Needy Families Donation Drive
Pennies for Patients through the Leukemia and Lymphoma Society

Havel –
Kiwanis Canned Food Drive
Toys for tots
Macomb Homeless Education Project

Rose Kidd –
Kiwanis Canned Food Drive
Assisted needy families
Assisted needy students

Magahay –
Kiwanis Food Drive
Toys for Tots

Messmore –
UNICEF
Forgotten Harvest
Turning Point
Make A Wish Foundation
Locks of Love
Sterling Heights Police K-9 Unit
Kiwanis Food Drive
Ronald McDonald House
Linus Project
The Bottomless Toy Chest

Monfort –
Toys for Tots
Shelby Lions Canned Food Drive
Letters to military personnel overseas

Morgan –
Extended Hand
Toys for Tots
Gifts for all God’s Children

Oakbrook –
Care package to an Oakbrook parent stationed on a ship in the Indian Ocean
Food Drive
Collection for Samaritan House

Plumbrook –
Kiwanis Canned Food Drive
Toys for Tots
Michigan Military Moms - care packages for soldiers
Thanksgiving canned food for local church food pantry
Staff assisted a needy family

Roberts –
Gloves, mittens, hats, scarves and socks collection
Household, personal items, canned food, toys, games, clothing for Community Housing Network
Lions Club Canned Food Drive
Gift cards to needy families
Karmanos Cancer Center

Schuchard –
Kiwanis Club Canned Food Drive
Sponsored needy family
Provided holiday celebration for ill child

Schwarzkoff –
Backpacks for Haiti
Project THAW
Toys for Tots
Kiwanis Food Drive
Kiwanis Club Hat and Mitten Tree
Assisted needy families

Switzer –
Toys for Tots
Lions Club Food Drive
Hat and Mitten Tree
Support for local families in need

Walsh –
Canned food drive
Toys for Tots
Mitten, Scarf, Hat and Sock Tree
Gently used and new Coats and Boots for the needy
Assisted needy family
Make a Wish Foundation

West Utica –
Shelby Lions Club Canned Food Drive
Letters for military soldiers serving in Iraq
Christmas Angels assist needy children and families
Make-a-Wish Foundation
Turning Point
Henry Ford Macomb Hospital Pediatrics – book donation
Ronald McDonald House of Ann Arbor
St. Jude Children’s Hospital
Michigan Humane Society
Big Family of Michigan

Wiley –
Toys for Tots
Support for 13 families in need

Junior High Schools

Bemis –
Sterling Heights Kiwanis Club Canned Food Drive
Toys for Tots
Giving Tree

Davis –
Canned Food Drive
Assisted needy families
Candy Gram for Ronald McDonald House

Eppler –
Lions Club Canned Food Drive
Salvation Army
Grace Centers of Hope Rescue Mission
Christmas cards to prisoners
Woodshop classes making pens for troops overseas
Care packages to a platoon serving in Afghanistan

Heritage –
Sterling Heights Kiwanis Club Canned Food Drive
Toys for Tots
Penny Drive to benefit the Leukemia Society
Assisted needy families at Thanksgiving

Jeannette –
VFW Penny Wars
Macomb County Canned Food Drive

Malow –
Toys for Tots
Extended Hands
Make a Wish Foundation
Gleaner’s Food Bank
The Holocaust Museum

Shelby –
Shelby Lions Canned Food Drive
Toys for Tots
Adopted seven needy families

High Schools

Eisenhower –
Adopted needy families
Shelby Lions Michigan Military Moms program
Toys for Tots
Hosted holiday party at Detroit Logan Elementary School
UNICEF
Toys for Tots
Gift to Sister School in Haiti
Performed French Carols at Sunrise Nursing Home
Compassion Sponsored Child

Henry Ford II –
No Soldier without a Christmas
Stockings for Children’s Hospital
Toys for Tots
Food Drive

Stevenson High School
Kiwanis Canned Food Drive
Habitat for Humanity
Assisted needy families
Volunteers at Shelby Nursing Home
Arthritis Foundation
Fundraiser to benefit special needs children
Fundraiser for DECA

Utica –
Adopted needy families
Toys for Tots
Kiwanis Club Canned Food Drive
Susan G. Komen Breast Cancer Foundation
Fundraiser for ill student
U-M Dance Marathon to benefit pediatric rehabilitation

UCAL –
Gleaners
Abigayle Ministries

UAIS –
Blankets to area shelters     
Assisted needy families

Departments

Central Office –
Meals for needy families

Business Department –
Adopted two needy families
Food drive for local food pantry
Provided assistance for other needy families