Concessions—Including Administrative Salary Freeze—Will Save UCS $8 Million

The Utica Community Schools Board of Education approved a set of budget reductions—including a salary freeze for administrators—this week that could save the district nearly $8 million for the 2011-2012 school year.

The reductions are especially critical since Gov. Rick Snyder’s proposed state budget would significantly reduce school funding levels.

The proposal, which was introduced last month, includes a $470 per pupil reduction in per pupil allocations, which would return UCS to a level less than the 2005-2006 school year. In addition, the district is facing increased mandated retirement costs through the state.

If Snyder’s budget reductions are approved by lawmakers, it would result in a $36.7 million deficit for UCS.  With the reductions adopted by the board of education, the district now estimates a $28.9 deficit for the 2011-2012 school year, under the current funding proposal being considered by state lawmakers.

At its bimonthly meeting Monday, the board of education unanimously approved the reductions, which include administrative staff concessions, projected cost savings in its employee benefit plans, facility changes, and the use of federal stimulus funding.

Below is a breakdown of the reductions:

• Administrative concessions that will save the district $1 million over two years. The district’s administrative employees have agreed to a two-year wage and salary steps freeze and furlough days.
• Estimated cost savings from bid proposals for health benefit plans covering nonteaching employee groups. Proposals are currently being sought for health care packages that will result in $610,000 in savings.
• Nearly $1 million in reductions through changes to alternative education and community education programs.  The district will be moving the AdvancePath alternative education program from a leased facility to district-owned building. The move will allow the district to combine resources with the current adult alternative education program housed at the facility during the evening hours.
  Community Education programs formerly housed at the Training and Development center will be moved to Walsh Elementary. Program fees administered by community education will cover the costs of using the facility.
• The use of $5.7 million in Edujobs funding. These federal funds are available on a one-time basis.

To address continued school funding issues, the Utica Community Schools has made more than $65 million in budget reductions over the past several years. These reductions have included employee concessions, closing four elementary schools, restructuring programs and services, sale of property and the strategic use of its fund equity.

 “Over the next few months, we will continue the process of preparing a balanced budget for the 2011-2012 school year in accordance with Michigan law,” Superintendent Dr. Christine M.  Johns said.  “This process will include communicating with our residents, working with our state lawmakers and employee groups, and making the reductions that are necessary to address our fiscal realities.”