St. Ignace Area Schools should pursue a property tax to fund its technology, busing, and energy needs in the wake of state funding cuts, a citizens advisory committee decided at a meeting at the St. Ignace Middle School library Wednesday, November 11. It was the first meeting of the community group, convened to help guide the school board.

Citing the state funding cutbacks and fewer students on which to base the state's per-pupil grant, citizens at the meeting said they would gladly help to promote a millage of 0.77 mills or more for 10 years to raise the $2.6 million needed to replace school buses, build a heating plant fueled by wood, and purchase student computers and digital teaching aids.

The State of Michigan's inability to raise school foundation allowances, which fund the majority of most district budgets, at the same rate as inflation, coupled with decreasing enrollment in the district, has caused numerous cuts at the schools, Mr. Springsteen said, and the millage is one way voters in the community can turn around that trend of rising expenses and sinking revenues.

"We have tried to do things efficiently, we have tried to do things cooperatively whenever possible," he said. "There really are few places left to cut. I see three areas that are critical and can be accomplished without help from the state."

St. Ignace Area Schools currently collects property taxes totaling 23.3947 mills for its operations, the district's sinking fund, and debt from previous purchases and construction. The portion paying back debt from the purchase of busses, set at 0.2 mills for 2009, expires this year.

School Bus Replacement

The first portion of the plan would be to replace five school busses over the next four years for about $375,000, which Mr. Springsteen said will keep the district's eight-bus fleet running through 2017.

Mr. Springsteen proposed that the two oldest busses, built in 1997 and 1998, be replaced in 2010. A 1999 bus would be replaced in 2011, a 2001 bus would be replaced in 2012, and a 2002 bus would be replaced in 2013. The district also owns two 2005 busses and one 2006 bus. Mr. Springsteen said the school board may also consider requesting funding as part of the millage to replace the three newest buses, since these vehicles will likely need to be replaced near the end of the 10-year millage.

Technology Purchases

Proposed technology purchases would include buying SMART boards for every classroom in elementary through high school, buying a computer for every student in grades five through 12, and buying a 30-computer laptop cart and docking station to be used in kindergarten through fourth grade classes.

The district currently owns seven SMART boards, which act as combination overhead projectors, digital whiteboards, and instructional tools.

The total cost of these purchases is about $620,000, although some present at the meeting suggested increasing this to allow the district to budget for repairs and replacement as the equipment ages, breaks, or becomes obsolete.

Wood Chip Boiler The final project to be funded by the proposed millage is a wood chip boiler for all three school buildings, designed to improve efficiency and save the school about $85,000 in heating costs each year. The cost of building such a facility, which will heat water by burning wood chips and replace natural gas as the primary fuel used to heat the schools, is estimated at $800,000.

The annual cost to heat the three buildings with natural gas, based on a two-year study , is $157,919. Heating with wood chips would cost about $64,417 a year, although only about $85,000 in savings is expected because some natural gas would be needed to supplement the wood chip boiler in cold winter months.

"It's a renewable energy source, it's a proven technology, and will reduce our heating costs," Mr. Springsteen said. "Where we are coming from right now, $85,000 a year is a lot of money."

The total cost given the group for these three proposed projects would be about $1,795,000, although Mr. Springsteen said the price would go up if the school board adds funds to purchase replacement computers when the original units become obsolete and to replace the remaining three busses in seven years or so, as citizens had proposed. He estimated that doing so could raise the amount needed to about $2.6 million.

"Those are not precise figures," he said. "If we are going forward we would need to get more precise numbers."

After consulting with Stauder, Barch and Associates, the Ann Arbor-based company that processes the district's bond financing, Mr. Springsteen estimated that a 0.54 mill levy on property taxes for 10 years would raise nearly $1.8 million over 10 years, which would be used to pay off the bonds.

Seeking $2.6 million could require a 0.77 mill levy. For a home valued at $100,000, that would amount to $38.50 in taxes.

Less State Funding, Falling Enrollment Factors in School

Budget Problems

With decreased funds from the state's foundation allowance, fewer students, and rising costs, Mr. Springsteen said this millage is one way to improve education and essential services like transportation, while saving money on energy costs and without needing to dip into the school's general fund, which would require greater cuts to programs currently offered.

"We want to help ensure that St. Ignace schools is one of the districts that continues to operate and offers a quality program," Mr. Springsteen said.

With inflation averaging 19.8% between 2001 and 2009 and the foundation allowance increases averaging only 8% in the same time period, all schools in Michigan dependent on the state funding are trying to balance a budget with higher costs and lower revenues.

"I see the list of things we have cut and it sickens me," Mr. Springsteen said, referring to the past few years. "We have got to stop that. We need to do what we can do."

These cuts in the past decade include eliminating 32 positions, major cuts to high school athletics, cutting all funding for the high school library, reduction to two class sections for every grade Kindergarten through eighth grade, reducing middle school and elementary principals to half-time, cutting back staff hours, and reduced transportation.

Over the past nine years, high school classes that have been cut in St. Ignace include drafting, accounting 1 and 2, creative writing, French 3 and 4, journalism, construction, creative writing, introduction to business, advanced computer applications, yearbook, desktop publishing, beginning and advanced foods and nutrition, beginning and advanced clothing, senior life skills, and psychology.

St. Ignace schools plans to dip into its fund balance for about $200,000 this year to help soften the blow of drastically reduced revenues, budgeted at $5,866,782, only $22,971 more than was received a decade ago, in 1999.

"We are operating right now with a budget that is the same as it was 10 years ago," Mr. Springsteen said. "We are going to do what we have to do to survive."

Citizens Give Suggestions

on Proposed Millage

Those present at the citizens committee agreed that the millage is a good idea for the district and the community, although some concerns were raised about levying enough money to pay for maintenance and replacement of technology and how best to communicate the proposal to the voters.

Some encouraged Mr. Springsteen to slightly increase the amount the district is asking for to allow for replacement and repair of the technology as it is damaged and outdated during the 10-year period.

Others at the meeting asked about the maintenance requirements and possible long-term expenses for the wood chip heating plant.

Mr. Springsteen said other schools have been very happy with the systems and maintenance would amount to about an hour each week and could be done by the current janitorial staff.

Hospital CEO Rod Nelson, who attended the meeting as a community member, suggested that St. Ignace use the purchase of this technology and buses to make the district a popular school of choice, drawing students from other areas and keeping them here.

"The goal should be to make St. Ignace a school of choice," Mr. Nelson said. "If our students don't have that technology advantage, they are way behind."

Martha Sjogren, a parent in the district, asked if these three projects were some of many the district has considered.

Mr. Springsteen said the three facets of the proposed millage are the main ones being considered by school board members and administration. By state law, only capital projects, such as technology and other major purchases or new construction, can be funded through a millage, which is why a millage is not being sought to directly supplement the school's revenues for general operation.

The May election would be the earliest opportunity the school district could put the issue to the voters. That would depend on the process of getting school board approval and approval of wood chip heating plant site plans from the bonding agents.

"This is going to take people taking this idea and selling it to their neighbors," Mr. Springsteen said. "A great selling feature is that business will be helped by having a good school here. It's good, economically, for the community."

He asked the group if there was any hint of dissent on the issue or if they were in support of trying to raise the millage, and all those present responded with no audible dissent. They also signed their names to a list and agreed to be called on to sit on a committee focusing on supporting the proposed millage.

Mr. Springsteen said the St. Ignace Board of Education may hold a special meeting this month to consider asking voters for the millage increase. This depends on what representatives from Stauder, Barch and Associates tell the district regarding the next logical step in the process.

If a special meeting is deemed unnecessary, the board will likely consider the matter at its 7 p.m. Monday, December 14, meeting. All school board meetings are in the Middle School library and are open to the public.

About 30 parents, teachers, residents, and community leaders attended the first citizen advisory committee meeting Wednesday night. A broad range of community members were invited by the district to serve on this advisory committee, and all those present signed their name and telephone number, in case the district wants to call on them for more help with funding issues.

Mr. Springsteen said he wanted a diverse group of people reflecting the St. Ignace community, including representatives from the business community, city government, parents of students, the Sault Ste. Marie Tribe of Chippewa Indians, senior citizens, townships, athletic boosters, and the parent-teacher organization.

No upcoming meetings have yet been set for the citizen's advisory committee, and meetings are open to the public.