St. Ignace Area Schools Board Discusses Financial Concerns
By Paul Gingras

Superintendent Mike Springsteen was praised for his abilities as an administrator during his annual evaluation by the St. Ignace Area Schools Board of Education Monday, February 12. Among his best qualities, board members focused on his careful assessment of the district's financial condition and his ability to provide friendly, straightforward communication with the staff, board members, and the public, while maintaining the ability to make tough decisions.

"He's like velvet-coated steel," said Vice President Rick Litzner.

Mr. Springsteen had an opportunity to demonstrate when he explained that the state must balance its $337 million budget shortfall by April. If the state balances the budget by reducing per-pupil expenditures to schools, it will cost the district $224 per student, which would be devastating, he added.

A decrease of that magnitude would "put many districts out of business," he said. It would not sink St. Ignace Area Schools, but the lost state aid would mean the district would have to "drastically change the way it does business," he added.

"The important thing is to keep our eyes on the kids and to do what we can with what we have," he said.

The district's financial health will not be known until the next board meeting in March, said School Board President Jane Weiss. By then, the state legislature should have come to an agreement regarding how the budget shortfall will be dealt with. If the legislature does not agree upon a plan by April, by law, it must balance the budget, meaning it is likely to "cut across the board," Mrs. Weiss said. Schools and other government-supported services would have to endure funding cuts, and at this late stage in the school year, St. Ignace Area Schools would have to compensate by spending $150,000 of its available fund balance, she added.

"If you are the type of person who writes to the legislature, write." Mr. Springsteen told the board, adding that residents could push for Governor Jennifer Granholm's plan, or another.

In the State of the State Address Tuesday, February 6, Gov. Granholm proposed to fully protect the $224 per-pupil funding increase it promised to schools earlier this year. This would avoid causing midyear upheavals.

If the state cannot increase its funding to districts this year, Mrs. Weiss added, it is unlikely that in can do so next year, meaning that when the district's new fiscal year begins July 1, the major changes in how the district does business, which Mr. Springsteen alluded to, would have to be made for the upcoming 2007/2008 school year.

"Our goal is to keep all the programs in place that we can," Mrs. Weiss told The St. Ignace News. "Our job is to educate students. We don't want to cut programs or teachers, but we only have [a certain amount of money] to work with."

"As Mr. Springsteen told us," she added, referring to the board meet- ing, "80 percent of the district's budget amounts to salaries," meaning such a budget cuts would almost certainly mean laying off teachers.

In a best case scenario, she said, a viable plan will be made to keep school funding intact, or the state economy will turn around and the government will not take back any of its promised $224 increase. If funding remains the same, no positions or programs will be cut, for now, Mrs. Weiss said.

The district has been weathering well, despite these hardships, she added.

"Mr. Springsteen and business manager Kathy McLeod have been providing strong Leadership and making good decisions, Mrs. Weiss said.

The state has not been in a good financial position for some time, so to lessen the financial impact on St. Ignace Area Schools, the district has avoided layoffs whenever possible by not replacing teachers who have retired, Mrs. Weiss said.

By changing insurance packages, the board was able to offer two percent raises to LaSalle High School Principal Don Gustafson, Elementary and Middle School Principal Bonny Ledy, and Business Manager Kathy McLeod. Mr. Gustafson now makes $83,636, Mrs. Ledy makes $69,923, and Mrs. McLeod makes $52,250.

Normally, administrative salary adjustments are not made until after support staff and teaching staff contracts are finalized. All contracts expired June 30, 2006. A support staff contract was agreed upon shortly afterward, but teacher contract negotiations continue.

Mr. Springsteen did not include himself in the wage increase, he said, because negotiations between the administration and the local union, St. Ignace Education Association (SEA), continue. He told the board that he wanted the teachers' package finished before he receives a raise.

The new insurance that made it possible to offer administrative raises, like the old, is a form of Blue Cross and Blue Shield of Michigan. Prior to the change, administrators had coverage called Michigan Education Special Services Association (MESSA). The new insurance is School Employees Trust (SET), which is a "dandy," Mrs. McLeod said. The district saves nearly $1,400 a month on premiums, and the new insurance, although it works differently, is comparable to MESSA, Mr. Springsteen said. MESSA is widely considered excellent insurance.

Mrs. McLeod also reported that the school will pay 18.56 percent of all wages for its retirement program next year, a 4.6 percent increase.

In other business, the board voted to continue a contract next year with the Eastern Upper Peninsula Intermediate School District for Internet access, technical support, and Web hosting. The cost will be $55,312.36, but with a federal telecommunications discount for schools, that will be reduced to $16,600.