The Ann Arbor Chronicle » AAPS Educational Foundation http://annarborchronicle.com it's like being there Wed, 26 Nov 2014 18:59:03 +0000 en-US hourly 1 http://wordpress.org/?v=3.5.2 Column: Is Public Education A Charity Case? http://annarborchronicle.com/2013/12/29/column-is-public-education-a-charity-case/?utm_source=rss&utm_medium=rss&utm_campaign=column-is-public-education-a-charity-case http://annarborchronicle.com/2013/12/29/column-is-public-education-a-charity-case/#comments Sun, 29 Dec 2013 15:24:28 +0000 Ruth Kraut http://annarborchronicle.com/?p=127317 If you’re like me, then every January you think to yourself, “This year, I’m going to spread out my charitable giving over the course of twelve months. It would be so much better for my cash flow, and probably it would be better for the nonprofits as well.”

Ruth Kraut, Ann Arbor Public Schools, The Ann Arbor Chronicle

Ruth Kraut

And then, come November and December, I realize that once again, I failed to spread out my giving – and I had better pull out my checkbook. Writing the bulk of these checks at the end of the year has a benefit, in that it allows me to look at all of my donations at once. But it also means that I’m in a rush and I don’t always take the time to reflect. So this is my opportunity.

Like many of you, we make donations to local, national, and international groups that focus on a wide range of issues. For us, those organizations do work related to health, the environment, politics, women’s issues, Jewish groups, social action, human services, and more.

Although I do give to some groups that, loosely speaking, fit the category of “education,” those entities do not make up a significant proportion of our donations. I confess to a certain ambivalence to giving to such groups – because, in many ways, I’m already a big contributor to public education. And it’s likely that you are, too.

In this column, I discuss the concept of donations – both voluntary (to charitable causes) and involuntary (through taxes). I talk about ways that most of us are already contributing, and provide some information that will help you give even more, if you’re so inclined.

When I sent an early draft of this piece to Steven Norton, an Ann Arbor resident and executive director of Michigan Parents for Schools, he shared this thought: “I’m not sure I agree that we are ‘donating’ to the schools, in the sense that this means an optional charitable contribution. I don’t feel like I’m donating when I help pay for police or fire services, or road maintenance.” He then referred to a quote by Oliver Wendell Holmes: “Taxes are the price we pay for a civilized society.”

His comments sent me straight to the dictionary – several dictionaries, in fact – looking for the distinction between donate and contribute. It wasn’t an easy search to find exactly what I was looking for.

For instance, the Merriam-Webster online dictionary defines donate as a verb that means “to give (money, food, clothes, etc.) in order to help a person or organization,” and “to make a gift of, especially: to contribute to a public or charitable cause.” That certainly implies a voluntary aspect. Yet a synonym for donate is contribute, “to give or supply in common with others.” In other words, contribute may or may not have a voluntary aspect.

Certainly, taxes are not voluntary, but they are contributions to a common cause. So in this column, when I use the term donor, donate or donation, I mean it in the sense of contributing to an important common good – public education.

The Property Tax Conundrum: I’m A Big Donor

I already give thousands of dollars to the vast educational enterprise that is Michigan’s public education system – as do many of you. Most of the sales tax I pay, a portion of my income tax, and the majority of my property taxes go to education. If you live in Ann Arbor, your tax bill includes line items for the State Education Tax, the Ann Arbor Public Schools, the Washtenaw Intermediate School District, and Washtenaw Community College.

More than 20 years ago – when I first became a homeowner – the taxes I paid for public schools actually went directly to the Ann Arbor Public Schools. In 1994, though, all of that changed with the passage of Proposal A.

The goal of that 1994 statewide ballot initiative was to create more equitable funding across all districts and to keep property taxes from escalating dramatically. But Proposal A took away most local control over school funding, though districts can still request voter approval to levy local millages for building construction, repairs, and maintenance – not, however, for operating expenses.

The state collects taxes directly from residential and non-residential property owners – 6 mills each, annually – and pools that money into the state’s School Aid Fund (SAF), which also includes revenues from sales and income taxes, state lottery revenue and other sources. Out of this fund, the state pays local school districts a per-pupil allotment – a variable amount set by the state legislature that can increase or decrease each year. In addition, state law controls the amount of taxes that school districts can levy directly – those that are not pooled into the SAF. Beyond the 6 mills that go into the SAF, for example, there’s an additional tax on non-residential property owners, but the state caps that tax at 18 mills.

Both the funding from non-SAF local property taxes and from the total School Aid Fund are factored into an amount called the per-pupil “foundation allowance.” This amount varies by district. Ann Arbor’s per-pupil funding for the current fiscal year, which began July 1, is $9,050 for each student. It accounts for most of the district’s revenues, with other revenues including the district’s share of a countywide special education millage and from federal grants. The per-pupil funding has been stagnant or falling for the last decade.

Michigan school funding, Michigan Parents for Schools, Ruth Kraut, The Ann Arbor Chronicle

State per-pupil funding chart. (Source: Michigan Parents for Schools)

Because of Michigan’s complex system of funding public schools and the fact that Ann Arbor is a relatively affluent community, today Ann Arbor is – as AAPS board member Christine Stead is rightly fond of explaining – a “donor district.” That is, Ann Arbor taxpayers are paying more into the statewide system than the district receives back in state aid. Steve Norton of Michigan Parents for Schools told me that AAPS gets back from the state less than half – about 47% – of what local taxpayers actually pay to the state for education.

I find the “per-pupil” approach to funding to be particularly frustrating. It’s often an unfair way to allocate funding, because although incremental costs change with the addition or subtraction of kids to a school, many of the base costs don’t change. For instance, when Pfizer closed its large research operation in Ann Arbor several years ago, many families moved out of this community. The children in those families left AAPS schools – along with the per-pupil funding for those students. Although funding dropped because of those departures, the fixed costs for educating the thousands of remaining students didn’t decrease proportionately.

When it comes to per-pupil funding, my family has been an exceptionally big contributor. For the past 15-plus years, I’ve had 1, 2, or 3 kids enrolled in the public schools, and each of my kids has brought their per-pupil “foundation” allowance. So my family is a “donor” to public schools in two ways – as part of the larger property-taxed community, and as a family that has chosen to stay in the public school system.

In some ways, I don’t mind being a “donor” to the state’s public school system, which includes supporting districts that are much poorer than AAPS. For example, my taxes are supporting the Kalkaska schools [1] – and really, I don’t mind (too much) paying for that.

But I do mind that Ann Arbor taxpayers can no longer levy additional millages to pay for operating expenses for our own Ann Arbor Public Schools.

And as an aside, I also mind that my taxes are supporting the Education Achievement Authority, an entity that the state uses to take over schools that are designated as failing. For a longer and fairly neutral analysis of the EAA, I’d suggest reading this piece from the Michigan Policy Network. You’ll find a more critical view at the Inside the EAA website – which includes EAA documents obtained through the Michigan Freedom of Information Act by state legislators and others trying to counteract the authority’s secrecy.

The Parent Conundrum: I’m (Still) A Big Donor

But taxes aren’t the only way I contribute to local education. As a parent, I’m constantly being asked to donate to school-related activities. Certain expenses that I pay have directly or indirectly benefited my children. Those costs include paying $500 for my son to play high school basketball ($280 for the district’s registration fee and pay-to-play, plus other team-related costs), field trip expenses, and PTO dues.

I feel like I get milked dry by these costs – and it doesn’t make me want to jump up with donations for other activities. Over the past several years, I have spent thousands of dollars on school-related activities. Luckily, I can afford these expenses – and I understand that many families aren’t so fortunate.

Yes, I know. I signed up for having kids, and my kids are lucky to have these opportunities. So no, I’m not complaining. I’m just explaining why it is that when someone suggests I pay even more, I think: Wait a second – I’m already paying for the essentials, as a taxpayer, and as a parent who sends my kids to these schools. And I’m already paying for the extras – at least, those that involve my children. You want me to pay even more?

Must I Donate Again?

One way that we’re asked to pay even more is through donations to nonprofit foundations. Most of our local school districts, for example, have affiliated nonprofit educational foundations that solicit contributions. Historically, these foundations have been used for enrichment activities – not for core operating expenses.

Locally, that started to change in 2009 when a countywide operating millage – the only kind permitted under Proposal A – was defeated. (It passed in Ann Arbor, but failed in much of the rest of the county.) After that defeat, the Ann Arbor Public Schools Educational Foundation decided to try to take up the slack with its “A Million Reasons” campaign. The name came from the idea that if everyone who supported the millage just gave the foundation the same amount of money that they would have paid in new taxes, the district would be in good shape. But that didn’t happen – and the campaign fell short of its fundraising goal that was intended to help with the basics of public education.

“Oh no,” my friend Laurie said to me as we discussed this on my annual Thanksgiving trip to my hometown. Laurie is on the board of her local educational foundation. “That doesn’t make any sense. Taxes are meant to fund schools. Local school foundations should focus on the extras.”

Now in fairness to the AAPS Educational Foundation, Laurie lives in a state that funds schools more generously, and in a district that probably gets more than twice as much as Ann Arbor does, per pupil.

But I’ll admit to sharing Laurie’s squeamishness. And the idea of the foundation spending so much social capital to raise only one million dollars – when the Ann Arbor schools budget is around $180 million – was never persuasive to me.

On the other hand, when I shared this perspective with Steve Norton via email, he noted that “personal donations are a last resort when the normal course of public policy has failed completely to meet the needs of our communities.” While he agreed with my friend that education foundations should pay for the “extras,” he also pointed to California, where local education foundations often pay for basics like salaries of whole programs – such as gym, music and art. The cause for California’s situation is similar to Michigan, he noted: a state tax system that was changed to strangulate public services. (In the case of California, their crisis was prompted by Prop 13.) “I hope we never get to that point,” Norton wrote to me, “but we are certainly headed in that direction.”

To me, the idea of asking educational foundations to make up a shortfall in public funding is a tough sell. However, the ideal that schools should be publicly funded is being challenged – and that’s still my ideal, and my values. And charitable giving is all about reflecting your ideals and values.

Multiple Ways to Give Even More

None of this is meant to imply that you shouldn’t donate to public schools, or to the broader educational enterprise. It is possible to donate directly to your local school district, without an educational foundation as an intermediary. The Ann Arbor Public Schools system has a donation policy, and probably most other local school districts do as well.

Many music teachers, for instance, will happily provide a new home for a serviceable instrument. (We donated my husband’s cello, which he stopped playing many, many years ago. His mother had maintained it in meticulous condition, hoping against hope that a grandchild would pick it up. They didn’t.)

The basic rule of thumb is, if you are interested in donating an item to a school, check with the building administrator to make sure it would be useful. And, of course, the schools also will gladly accept direct financial support – last year, for example, the Argus Planetarium at Pioneer High was renovated using a direct donation.

Or if you want to donate to one of the local educational foundations, here are links to several in Washtenaw County: the Ann Arbor Public Schools Educational Foundation; the Chelsea Education Foundation; the Educational Foundation of Dexter; the Manchester Community Schools Foundation; the Foundation for Saline Area Schools; the Whitmore Lake Foundation for Educational Excellence; and the Ypsilanti Community Schools Foundation.

Nearly every school – maybe every school – has a parent-teacher organization (PTO), and generally they are also 501(c)3 nonprofits. So if you want to support your local school, you can give directly to the PTO. The PTO directs its funds to the programs or activities that the parents and teachers want to support. Some of the PTOs have very elaborate fundraising activities. The Burns Park Run, for example, raises money to support the Burns Park Elementary PTO programs, and Ann Arbor Open has turned Scrip into a high art form. Even if they don’t have organized fundraising efforts, all PTOs can use your support.

Perhaps you have a special place in your heart for the arts, or for environmental issues. Most of the schools have special funds (or a special nonprofit – yes, many of these are auxiliary groups with nonprofit status) to fund music, theater, athletics, and more. And the Ann Arbor Area Community Foundation has an environmental education fund that is meant to support the Ann Arbor schools.

Finally, there are many organizations that support kids and families, in ways both academically-related and in fighting poverty. For instance, groups like Peace Neighborhood Center, Avalon Housing, and Community Action Network support low-income families in particular neighborhoods with after-school tutoring. The Student Advocacy Center fights for kids at risk of, or threatened with, suspension and expulsion. And other organizations, like 826 Michigan, bring after-school tutoring to the masses. (A special shout-out to 826 Michigan for pairing up with the Ypsilanti cafe Beezy’s, which is open for breakfast and lunch, and then provides a space for 826 Michigan’s after-school tutoring.)

I don’t mean to give an exhaustive list, but rather to share some examples. Please do add to these ideas in the comments section.

Giving, Getting, and Governing

I’ve explained how I’m already a big contributor to the schools. But it’s not just that we give a lot. We get a lot, too – and so do residents who don’t have kids. I don’t mean that in a high-level, theoretical “we-want-good-schools” way. I mean that in an economic sense. That’s because perceptions of schools are major drivers of property values, and property values affect much more than schools.

So in the next few days, we will give to some school-related causes, and you might too. But remember – the bulk of school funding comes through the state, and that funding has been slashed over and over again in the past decade.

Perhaps the most effective donation you can make is your donation of time and effort to convince legislators to provide more funding to public schools. That’s how public schools get funding, and where reform will need to occur if we want the current situation to improve.

Keeping our public schools both public and nonprofit, at this point, requires a lot of advocacy. In my opinion, two excellent sources of information are Michigan Parents for Schools and the Tri-County Alliance for Public Education.

I’ve been writing about year-end donations, and when the year ends, a lot of people turn to New Year’s resolutions, too. While you are making your list of resolutions, I hope you’ll make room for one more thing: advocating for public, nonprofit schools. I hope you’ll advocate for schools that are for children, not for corporations or for-profit charter chains. And I hope you’ll advocate for adequate funding.

Whether you’re a donor, an advocate, or both, this I believe: together, we can make a difference.


Notes

[1] I’m not picking on the Kalkaska schools. Kalkaska became the poster child for school funding reform when it closed its doors early in the spring of 1993 after the latest of several attempts at passing an operating millage failed. [For more background, read this March 6, 1993 article in the Ludington Daily News.] Proposal A was the product of efforts to equalize school funding regardless of local tax base, coupled with then-Gov. John Engler’s promise to reduce property taxes.

Ruth Kraut is an Ann Arbor resident and parent of three children who have all attended the Ann Arbor Public Schools. She writes at Ann Arbor Schools Musings (a2schoolsmuse.blogspot.com) about education issues in Ann Arbor, Washtenaw County, and Michigan.

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Educational Foundation Marks Achievements http://annarborchronicle.com/2009/05/04/educational-foundation-marks-achievements/?utm_source=rss&utm_medium=rss&utm_campaign=educational-foundation-marks-achievements http://annarborchronicle.com/2009/05/04/educational-foundation-marks-achievements/#comments Mon, 04 May 2009 09:44:27 +0000 Mary Morgan http://annarborchronicle.com/?p=19862 Jim Cameron

Jim Cameron, right, a board member for the Ann Arbor Public Schools Educational Foundation, gets a tutorial from Travon Larkin-Warren as Rong (Tim) Situ looks on. Larkin-Warren and Situ are sixth-graders at Scarlett Middle School, where the foundation held its annual fundraiser on Saturday. The boys were on hand to demonstrate the My Access writing program, which is funded in part by the foundation.

“Everybody’s proud in the Scarlett Nation!” Ben Edmondson, principal of Scarlett Middle School, proclaimed to the 200 or so people gathered in the school’s cafeteria Saturday night. He could have been talking about the eighth-grade boys who were dressed in suits and leading tours of the building. Or the orchestra that played a solid performance of William Hofeldt’s “Toccatina.” Or the kids who contributed to the school’s first literary magazine, a draft of which was on display in the media center. Or the $11 million that’s been spent on building renovations over the past few years.

Highlighting Scarlett’s achievements was just one goal of the evening for the Ann Arbor Public Schools Educational Foundation, which hosted the event. It was the nonprofit’s second annual Celebration of Innovation and Excellence, a way to draw attention to the district’s accomplishments as well as challenges, and to raise money for supporting the schools.

The evening included tours of the building, led by Scarlett students and alums, displays and demonstrations of projects both specific to the school and districtwide, and performances by student musicians. The Chronicle’s tour was led by eighth-grader Orion Rosales and UM sophomore Chris Bowerbank, a Scarlett graduate who’d been enlisted by a friend whose mother, Ellen Daniel, teaches there. (In response to some mild snark from the group, Rosales said he didn’t think the display in the science classroom designed to illustrate the atomic structure of gases was actually a Chinese checkers set.)

Orion Rosales, an eighth-grader at Scarlett Middle School, led tours of the building.

Orion Rosales, an eighth-grader at Scarlett Middle School, led tours of the building.

The tour included a demonstration of a program called Elevate Math, which two Scarlett students were demonstrating in the media center. They were sitting at computers with headphones on, talking to tutors who were helping them work through math problems displayed on their computer screens. The tutors on the other end of the line were in Mumbai, India.  Why Mumbai? The program, part of a broader business called Elevate Learning, was started by Shaily Baranwal and Suhas Ghuge, who developed it while they were MBA students at the University of Michigan Ross School of Business – and they’re  from Mumbai.

Marla McKelvey, a Scarlett math teacher who was on hand to explain the program, said it was paid for with Title 1 funding from the state. Scarlett is eligible for this funding, which targets high-poverty schools, because of the number of kids who are eligible for free or reduced-price lunches. (Later in the evening, Edmondson said that 50% of Scarlett’s roughly 570 students receive free or reduced-price lunches.)

A few tables away in the media center, sixth-graders Travon Larkin-Warren and Rong “Tim” Situ were working on computers using a different program, My Access. Scarlett had been the pilot site several years ago for this writing program, which is now used in fifth-grade classes districtwide. The program provides writing prompts, feedback on things like grammar and punctuation, as well as more global writing assessments, according to Carroll Caudill, a Scarlett language arts teacher. Students can get more writing practice and feedback this way than any single teacher can provide, he said. In fiscal 2009, the educational foundation contributed $25,000 to funding the My Access program.

(Larkin-Warren and Situ, upon discovering that The Chronicle would be writing about this event, said they’d been featured previously in a news article by David Jesse – last year, their fifth-grade math class was highlighted in a piece by the Ann Arbor News’ education reporter.)

Ellen Daniel, who teaches language arts at Scarlett, was also in the media center, with draft copies of the school’s first literary magazine, which includes artwork, poetry, short stories and other work by students. They would have been further along with the completed version, she said, but a power outage on Tuesday caused students to be sent home before they could meet to do the final proofing and copyediting. The project is funded with $1,000 from one of the foundation’s mini-grants.

The Scarlett Middle School orchestra performed at Saturdays event. On the right, playing electric cello, is the orchestras director, Mitchell Lawrence.

The Scarlett Middle School orchestra performed at Saturday's event. On the right, playing electric cello, is the orchestra's director, Mitchell Lawrence.

Several other projects that received mini-grant funding were exhibited at Saturday’s event, including Latino family workshops and a program that brings local farmers into the classrooms to talk about their work.

In remarks during a formal presentation at the event, superintendent Todd Roberts said that even though the district faces financial challenges, they were still able to achieve great things. One example he cited was the work of Pioneer High School teacher Jeff Kass – Roberts noted that last Wednesday had been declared Jeff Kass Day by the mayor. (Not coincidentally, Wednesday was the day of his one-man show, “Wrestling the Great Fear: A Performance Poetica.”)

Roberts said that because Proposal A caps what a district can do in terms of tax revenues for schools, there are two other options: 1) increase private giving, and 2) think seriously about a countywide enhancement millage. Roberts said that Ann Arbor is well-positioned to make private giving a strong component of funding in the future.

Wendy Correll, the foundation’s president, echoed that sentiment. She said that in its early years, the foundation provided about $2 per pupil to the district. Now, that amount is around $10 per pupil for the district, which has about 16,500 students. But their goal, Correll said, is to raise $100 per pupil to fund innovative programs for all students and schools.

The evening ended as people finished up their desserts – the event was catered by Chartwells, which holds the contract for food service in the district. There was also opportunity to learn about the many relationships and connections that people had to Scarlett. Russ Collins, who hosted the formal presentation and is himself a product of Ann Arbor schools, noted that his wife, Deb Polich, had briefly worked as head cook at Scarlett’s cafeteria when she was in college. (Polich is now CEO of Artrain. Collins is CEO of the Michigan Theater.)

The notion of pride came up again, too, as the evening wound down.  Scott Westerman Jr., who was superintendent of the Ann Arbor district in the late 1960s and early ’70s, chatted with Scarlett principal Ben Edmondson and praised his work and leadership at the school. Edmondson had recently been in the running for the superintendent’s job at the Ypsilanti public school district, but was not one of the two finalists. Westerman told him not to worry – it was just a matter of time before the right opportunity came along. He assured Edmondson that he’d be a superintendent one day, because he had those kind of leadership skills.

Ben Edmondson, principal of Scarlett Middle School.

Ben Edmondson, principal of Scarlett Middle School.

Wendell Clark and Wanda Sanders of Chartwells make stir-fry for a student. Chartwells, which has the contract to serve food in the schools, catered Saturdays event. Clark typically works at the Pioneer High cafeteria.

Wendell Clark and Wanda Sanders of Chartwells make stir-fry for a student. Chartwells, which has the contract to serve food in the schools, catered Saturday's event. Clark and Sanders typically work at the Pioneer High cafeteria.

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Ann Arbor Schools Tackle Looming Deficit http://annarborchronicle.com/2009/03/04/ann-arbor-schools-tackle-looming-deficit/?utm_source=rss&utm_medium=rss&utm_campaign=ann-arbor-schools-tackle-looming-deficit http://annarborchronicle.com/2009/03/04/ann-arbor-schools-tackle-looming-deficit/#comments Thu, 05 Mar 2009 04:05:35 +0000 Mary Morgan http://annarborchronicle.com/?p=15368 This sign in a hallway at Scarlett Middle School could apply to the Ann Arbor Public Schools budget.

This sign in a hallway at Scarlett Middle School, quoting basketball legend Michael Jordan, could apply to dealing with the Ann Arbor Public Schools budget. Superintendent Todd Roberts and other AAPS officials held a public forum on the budget Tuesday night at Scarlett.

Students outnumbered parents at Tuesday night’s budget forum for the Ann Arbor Public Schools, but only (we suspect) because it fulfilled a civics class requirement. At any rate, the 20 or so people who showed up at the Scarlett Middle School media center all got a lesson in the intricacies of public school funding, and a look at how AAPS plans to deal with an anticipated $6 million deficit in its next fiscal year, with the deficit projected to grow to $12 million by 2011-12.

Approaches include possibly floating a countywide millage as early as this fall, increasing student enrollment through online offerings, and lobbying state legislators for additional dollars and to reform the way schools are funded.

Superintendent Todd Roberts and Robert Allen, deputy superintendent of operations, laid out the challenges they face, not the least of which is the convoluted way in which the state funds K-12 education. Let’s just say the slide they showed to illustrate the various funding mechanisms looked Rube Goldberg-ian.

Todd Roberts, superintendent of Ann Arbor Public Schools, and Robert Allen, deputy superintendent for operations, look over their presentation before Tuesdays budget forum at Scarlett Middle School.

Todd Roberts, superintendent of Ann Arbor Public Schools, and Robert Allen, deputy superintendent for operations, look over their presentation before Tuesday's budget forum at Scarlett Middle School.

Funding factors

The bulk of funding for public schools in Michigan is allocated by the state on a per-pupil basis. For the current fiscal year, AAPS receives $9,723 per student, and has roughly 16,500 students system-wide. Its general fund budget was $182.7 million for 2007-08. The administration will be presenting an update on its current fiscal year budget at the district’s March 11 board meeting.

Revenue that the state relies on for K-12 funding includes local property taxes, sales taxes and state lottery revenue, among other sources – and many of these sources are showing declines because of the state’s overall economy, Allen said. These revenues are pooled into the state’s School Aid Fund, from which each district’s “foundation allowance” (per-pupil funding) is distributed. It’s a variable amount, set annually by the state legislature, that can increase or decrease each year. [An exponentially greater level of detail about school funding in Michigan is explained in the book "A Michigan School Money Primer," by Ryan Olson and Michael LaFaive.]

The current system was put in place after the 1994 passage of Proposal A, which aimed to create more equitable funding across all districts and to keep property taxes in check. (Districts can still seek local millages to pay for repairs or building construction and maintenance, such as the fairly recent construction of Skyline High School.)

Several other factors are at play. Ann Arbor is one of only 52 districts statewide that are classified as “hold-harmless” districts. These districts, at the time when Prop A took effect, were receiving revenues higher than the $6,500 per-pupil level set by the state under Prop A. Rather than have their funding lowered, they were allowed to levy additional funds to make up the gap. For Ann Arbor, that amount is 4.27 mills for 2007-08, or $1,234 per pupil (depending on property values, the tax varies in order to generate the $1,234 per pupil, which is a fixed amount).

Because of their special status, hold-harmless districts sometimes receive lower per-pupil funding increases from the state. For fiscal 2008-09, for example, Ann Arbor and other hold-harmless districts received an increase of $56 per pupil, compared to $112 received by other districts.

This year there’s yet another twist: The budget could be positively affected by federal stimulus dollars, though that’s not yet clear, Roberts said. They should have more information about that within the next month.

School board member Susan Baskett, left, attended Tuesdays budget forum at Scarlett Middle School.

School board member Susan Baskett, right, attended Tuesday's budget forum at Scarlett Middle School.

On the expense side, salaries and benefits account for 85% of the AAPS budget, primarily for teachers (71%) and other instructional support (14.1%). School officials are projecting incremental increases in these areas based on previously negotiated raises and increases to fringe benefits like health and life insurance, among other things. School board member Susan Baskett, who attended the Scarlett budget forum, also noted that contract negotiations are currently underway, so the outcome of that deal will have an impact on upcoming budgets as well.

Budget deficits for AAPS are nothing new, Roberts noted – they’ve dealt with deficits for the past three years, and have cut more than $14 million in expenses over that period. He also noted that this year they’ll likely need to use $2 million from their fund equity balance, also known as the “rainy day” fund, to cover expenses. They have about $28 million in the fund at this point.

Allen said that the more they are required to cut, the less attractive the district will become, which in turn would cause parents to seek other options, like private or charter schools. That, in turn, would reduce enrollment, which would cause additional revenue declines based on the state’s per-pupil funding model. It’s a snowball effect that would just keep growing unless other strategies are found to deal with these funding challenges.

Steve Norton

Steve Norton, executive director of Ann Arbor Parents for Schools.

What can be done?

Roberts outlined several approaches that AAPS was pursuing, or might pursue, to address the projected deficits. Those options include lobbying state legislators and the governor, increasing student enrollment, raising more funds through private donations, and passing a countywide educational “enhancement” tax.

Lobby the state legislature. Roberts said that legislators are more inclined to listen to parents and others who don’t work for the public schools, and he urged people at Tuesday’s meeting to contact the governor and state legislators, asking them to give local communities more control over school funding. He then introduced Steve Norton of the advocacy groups Ann Arbor Parents for Schools and Michigan Parents for Schools.

“The system that’s been in place since 1994 is not working,” Norton said, adding that under the current state funding model, there aren’t many options. Legislators need to hear from citizens that it’s important to invest in education, he said. Donating to organizations like the AAPS Educational Foundation is another option, as is a possible “enhancement” millage which would provide additional funding for all districts in Washtenaw County.

The important thing, Norton said, is to become engaged in these efforts now, at meetings like these, “where you can have your voice at the beginning of the process, rather than the end.”

Increase student enrollment. As long as the state funds districts based on a head count, then increasing enrollment is one sure way of getting additional revenue. Roberts estimated there are 1,200 students within the AAPS district who don’t attend public schools. They are either home-schooled or attend private or charter schools.

One way to attract new students countywide is through online course offerings, Roberts said. Children who are home-schooled, for example, might want to take some AAPS courses this way. This year AAPS brought in 19 students through its online courses with very little effort, he said. Officials are projecting they’ll add 50 students in the next fiscal year through online courses and other efforts, and with additional marketing.

Wendy Correll, executive director of the Ann Arbor Public Schools Educational Foundation, described how that nonprofit helps fund educational programs.

Wendy Correll, executive director of the Ann Arbor Public Schools Educational Foundation, described how that nonprofit helps fund educational programs.

Increase private donations. The Ann Arbor Public Schools Educational Foundation works to raise money that’s used to fund programs within the schools. Wendy Correll, the group’s executive director, attended Tuesday’s meeting and described the foundation’s efforts.

For the current academic year, the foundation is providing about $7.50 in funding per student – an increase from $2 per pupil provided a couple of years ago. Yet in some communities, she said, foundations raise as much as $800 per pupil. “Are we there yet? Certainly not.” To cover the $6 million projected deficit, they’d have to raise about $350 per pupil. As much as they can, the foundation is trying to provide a safety net for the district’s programs, she said.

During the current year, those programs include a web-based writing literacy program called My Access, music tutoring for talented but economically disadvantaged middle school students, funding for “Plan and Explore” tests for all 8th and 10th grade students to help in post-high school planning, among other efforts. The foundation also awarded $37,000 in various grants to teachers this year.

Pass a countywide millage. Roberts said that leaders of all Washtenaw County school districts have been discussing the option of putting an education millage on the Nov. 9, 2009 ballot. It would be distributed based on the number of students in the district, and could provide about $4.5 million in additional funding for AAPS. He said a decision about that will likely be reached by the end of this school year.

Irene Patalan, vice president of the Ann Arbor school board,

Irene Patalan, vice president of the Ann Arbor school board, speaking at Tuesday night's budget forum, said "I worry about how much more we can cut."

Next steps

Roberts and Allen will be holding a second budget forum on Thursday, March 5 from 7-9 p.m. at Forsythe Middle School, 1655 Newport Road. [confirm date] The event is open to the public. Early next week, they plan to post their presentation online, with a place for people to post comments. As the district fields questions and comments, they’ll be forming a FAQ (Frequently Asked Questions), which will also be posted on the district’s website.

They’ve been developing a draft budget and will be briefing the board of education on it, starting later this month. Public hearings will be held in May, with the budget likely being voted on at the board’s June 10 meeting.

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