A VIRTUAL Dire Straights Dead Ahead

Pontiac schools to ask for 10 percent pay cut


Of The Oakland Press
ÊÊÊÊPONTIAC - School administrators hope to chop a daunting budget shortfall in half by asking all school employees to accept a 10 percent pay cut. ÊÊÊ

ÊOther proposals being offered to narrow the gap include closing three school buildings, eliminating more than 100 support staff positions and cutting athletic program spending by half.

ÊÊÊÊ"We certainly have some very serious challenges before us," said Terry Pruitt, the district's assistant superintendent for business services.

ÊÊÊÊAnswering speculation that the district's budget shortfall for the 2005-06 school year was as high as $24.9 million, administrators presented the Pontiac Board of Education with detailed information Tuesday identifying an $18.1 million problem.

ÊÊÊÊTo date, the district has implemented $4.6 million in cuts that range from administrative and teacher position reductions to food, transportation and supply cost reductions. To avoid slipping into the red, however, board members will need to fi nd $13.5 million in additional cuts by June 30, 2006.

ÊÊÊÊ"As we speak, we are not in the red. We are forecasting a deficit if we do nothing," said Superintendent Mildred Mason. "The truth is that we're spending more than we should in terms of the number of students we're serving."

ÊÊÊÊIn fact, a recent annual audit of district spending found that during the 2004-05 school year, spending was $5.1 million more than anticipated. The same amount is part of cuts needed in the current school year.

ÊÊÊÊBecause 80 percent to 85 percent of district spending is on employee salaries and benefits, administrators said a considerable portion of spending cuts would have to come from staff. Mason and other administrators looked to lead by example Tuesday by pledging to accept a 10 percent pay reduction and a freeze on salary and benefits in the 2006-07 school year.

ÊÊÊÊWinning a 10 percent pay reduction from all district employees would result in roughly $6 million in savings.

ÊÊÊÊOfficials have looked to win concessions from district support staff since late June, but those efforts have been stalled by communication problems.

ÊÊÊÊOn Tuesday, Board President Richard Seay directed Mason to arrange meetings with union presidents as soon as possible to discuss the district's fi nancial situation in detail and begin negotiating a solution.

ÊÊÊÊ"I'm tired of sitting at this board table and seeing everybody pointing fi ngers and saying, 'Noboby called me,' " he said.

ÊÊÊÊTanya Muse, representative of the Pontiac Education Association, told board members that three weeks after requesting it, she still has not received information detailing how the district fell into its fi nancial predicament. Following Tuesday's meeting, she said she could not comment on the 10 percent pay cut plan until that information is provided.

ÊÊÊÊDistrict officials agree the most daunting problem leading to district budget woes has been a rapidly declining student population. Administrators had predicted a loss of 372 students this year, but that figure has been updated to 712 students.

ÊÊÊÊAs a result, building closures appear imminent. On Tuesday, plans for the merging of Washington and Jefferson middle schools, Purdue and Longfellow elementaries and Crofoot and Franklin elementaries were introduced. It is unclear which buildings will be closed.

ÊÊÊÊAdministrators plan to bring these plans, as well as the pay cut, support staff reduction and other cost-cutting measures, before the board's finance and personnel committees over the coming days. The plan could be back before the board for action as soon as Sept. 26.

ÊÊÊÊMason said prompt action is necessary not only to avoid worsening the fi nancial challenges, but also to get the district's attention back in the classroom.

ÊÊÊÊ"We need to take care of this so that all of us can refocus on educating our children," she said. "We're still held accountable for student achievement despite all the other challenges we face."