Seven teachers and six support staff at Les Cheneaux Community Schools were notified Wednesday, November 19, that they may be laid off because of a $120,000 revenue deficit that could grow worse. While the layoffs may never materialize, under its contract with employees, the school district must give 60 days notice that teachers and staff may be let go. Sixty days from the date of notice is the first day of the second semester, January 19.

A special community meeting was held Monday, November 24, to explain the situation to the public and address questions and concerns. The board has yet to make any decision to fire any employees, and the school board could decide to keep its staff this year and deal with the deficit in the next school year.

The district projected a $103,000 deficit when it adopted the budget at the end of June.

Among the factors contributing to such a "tipping point" are declining enrollment and medical insurance costs, said Superintendent Rod Goehmann Monday.

A 25 percent decline in enrollment over the last four years is a major factor, he said. The loss of 19 students reduced the state appropriation by $204,000 this year, and an expected loss of another 19 students next year could reduce the state appropriation by the same amount.

There are 312 students enrolled at Les Cheneaux Community Schools this year.

Insurance problems are also cause for the budget concerns, Mr. Goehmann said. Several years ago, the district changed from a premium plan to a self-funded insurance plan with Blue Cross Blue Shield, saving the district about $200,000 per year.

One stipulation with the selffunded policy, however, is that the district must have at least 50 employees on the insurance plan. The district has only 48 on the plan this year, however, because several employees left the district over the summer and some positions were consolidated. As a result, the district may have to return to the premiums plan.

Principal Amy Scott said it is cheaper to hire two employees than to return to the old insurance plan, but the lack of funds in the budget doesn't allow the district to do so.

Mr. Goehmann recommended to the Board of Education that no employees lose their jobs and the deficit be carried over to next year's budget. The board may make a decision as early as its December 15 meeting.

The current deficit may be higher or lower at the end of the school year, depending on district spending throughout the year, such as heating and gasoline costs.

The teachers and staff notified of possible layoffs were selected on the basis of seniority, Mr. Goehmann said, although he would not name them.

"The board's response was to prepare employees and the community for the resourcing of finances," Mr. Goehmann said. "Do I really want to lay off teachers? Are you kidding? I don't want to lay off one employee."

Trustee Dave Murray outlined three directions the district is not allowed to take to pay the deficit. First, state law says a special millage to raise taxes cannot be implemented. Second, "sinking funds" (special millages) can only be used for specific purposes like technology spending and building repairs, not school operations. Third, the district cannot take out a loan to cover the deficit.

The school could increase revenue through fundraising activities, the board noted, in response to questions from the public. It also is developing a DVD to recruit students to the district under the "school of choice" option and is working on ways to partner with home school families.

Other schools are also facing hard times, Mr. Goehmann told the audience. DeTour is being helped by a state geographic isolation subsidy that goes to small schools that are too remote to be able to consolidate with other districts. Nevertheless, he noted, it is suffering from the same budget problems as Cedarville.

Pickford, on the other hand, he noted, has benefited from increased enrollment, in part because of the closing of schools at Kinross and Bruce Township.

After the board's presentation, the meeting was open to public comment and question. Audience members asked questions such as how neighboring schools are dealing with declining enrollment, if the district can acquire the money through fundraising, how to increase enrollment, and how employees issued pink slips were chosen.

Mr. Goehmann said he will post questions and answers to citizen questions on the school's Web site, http://lescheneaux.eup.k12.mi.us.

The Board of Education will hold its next scheduled meeting Monday, December 15 at 5 p.m.