TCAPS could face $8M budget shortfall

TCAPS could face $8M budget shortfall

TRAVERSE CITY -- Members of a committee drafting budget cuts for Traverse City's public schools next year said the scope of potential reductions could be more sizable than they hoped.

The 19-member group has considered reductions worth $2 million, $4 million and $6 million, but has not set a maximum limit. They also are generating suggestions within a broader range of $8 million to $12 million.

District administrators initially set best- and worst-case budget estimates for 2010-11 between $6 million and $11 million short of revenues.

But given per-student state funding cuts this year, as well as the use of some short-term federal stimulus dollars, the school system could face a roughly $8 million shortfall next year, said Paul Soma, chief financial officer, during a Monday task force meeting.

The committee should develop a recommendation toward the higher end of the scale to show "you recognize the severity of what's coming," said Michael Novik, a parent and committee member.

Some group members suggested that bigger-ticket items would help reach a higher target without cutting from too many areas.

Others said cuts, if sustainable, can help when the district tackles future financial challenges.

Eliminating high school busing could save $1 million now, for instance, but the committee needs to consider whether that should carry through multiple years, said Matt Courtade, a physical education instructional assistant at East Middle School and a committee member.

"This isn't going to be the only year we're talking about cuts," Courtade said, adding that removing $8 million from a $90 million budget is a form of restructuring.

"I don't know if this group has the capability of doing that," he added. "We just don't have enough information."

The committee received new details Monday about suggestions left vague in recent weeks, including the district's travel stipends and the effects of increased class sizes on student schedules.

Members also discussed possible savings if all employees received a collective health insurance package, but any suggestions that affect compensation will have to be negotiated with the district's employee unions.

The district budgets about $2 million for all utilities, Soma said, adding that administrators monitor monthly bills for any costs that seem too large.

Sandy Lautner, a custodian and committee member, said she often sees vending machines left on when she works nights in schools.

A public hearing will be held Nov. 16.

- Posted on November 4, 2009