Someone recently asked me if I thought the state would eventually mandate school consolidation. I responded by saying, "No, they don't have to mandate it, as finances will drive the decision."

The "C" word carries "politically deadly" connotations and even local school board members are reluctant to use the word for fear of being "non-supportive" of the local school and community.

The fact that the question was raised made me realize that some people, especially in smaller communities, who are reading about the finances of the local schools, are starting to understand that having a local school as we now know and love may soon not be financially feasible. It is very difficult now and if current projections are correct the problem is going to get more difficult, much more difficult

I am writing this article as I am convinced that having a basic understanding of what is presently happening with school funding will place this issue in a clearer perspective and set the stage for some serious planning. The forecasts are too dire for us to think we can continue business as usual. It also takes time and thought to develop and implement any proposed changes and our time is running short!

Since 1994 (Proposal A), public school districts in Michigan are paid based on the number of students enrolled. Each district receives a "Foundation Grant" which is multiplied by the number of enrolled students. That Foundation Grant varies slightly from district to district, depending what the district was spending in 1993. The money for this Foundation Grant comes from two primary sources. Each homestead property owner pays 6 mills, which are forwarded to the state. Additionally, non-homestead property owners pay another 18 mills, which are all kept locally. When enrollments are known, they are then multiplied by the Foundation Grant. If the 18 non-homestead local mills do not generate enough money to cover the Foundation Grant, then the state (from the 6 mills and other sources) makes up the difference.

According to the state's present revenue projections, it does not have enough money to make up the difference needed for this year, which ends June 30. To make up this shortfall, the state is using Federal Stimulus Funds. For the 2009-10 school year, the state is proposing to use a much larger portion of the Federal Stimulus Funds, as well as cut- ting the Foundation Grant by $100. So, for 2010-11 school year, when the Federal Stimulus Funds are depleted, the state is going to have to make up the loss of Federal Stimulus Funds by more than $1,000 per student just to get the Foundation Grant back to the 2007-08 level.

Additionally, the legislature is being forced to eliminate other school revenues. The declining enrollment funding factor, which allowed some schools to average their enrollment over three years, is being eliminated. Transportation reimbursement funds received by some local districts will be eliminated, in addition to the funding for geographically isolated schools. This only affects DeTour, Mackinac Island, and Whitefish Township Schools in Paradise, locally.

How does all this translate for your local school? Following are a couple of examples:

As seen, each district is showing significant revenue decreases for the next school year. While we can't know what will be proposed for the 2010- 11 school year, we do know that massive cuts from the state will have to be imposed as the Federal Stimulus Funds are used up.

So the question becomes, "Given the current economic crisis, what are the chances that the state will be able to fund the Foundation Grant for 2010 - 2011 even at the 2007-08 levels?"

While I am not suggesting that consolidation is the answer, I do believe that our only hope of maintaining a local school is to share students, which could be done in a number of ways. Most importantly, I believe that we have lost our privilege of being provincial in our thinking about local schools, that we must think that all of the students in the area are "our students," and that now is the time to open the discussion on how we can maintain the best possible education for all of "our children." The longer we wait, the less opportunity we will have to shape and direct the best possible plan.

Schools have been asking students to "Put their thinking caps on" for generations. The task to all is to stretch that thinking cap to its maximum size and creative limits as everyone works together to anticipate and meet the forthcoming challenges without sacrificing all that is positive about local education in the Eastern Upper Peninsula.