The policy committees of Moran Township and St. Ignace Area Schools met Wednesday, July 7, to further discuss a St. Ignace proposal that would offer junior high band and athletic programs only to students attending St. Ignace Middle School, and consider alternative solutions that might benefit both school districts in the future. The participation policy is being mulled by St. Ignace as a way to receive more per-pupil funding from the state by encouraging students from Gros Cap School in the township to attend the St. Ignace school.

No decision was reached, and the two schools will meet again August 25, although Gros Cap could increase its offer of $15,000 to St. Ignace as payment for about 20 of its students to participate in the St. Ignace programs this year. The Moran Township school board will discuss the matter further at its meeting Monday, July 19.

Ideas that were discussed at the meeting included Moran Township offering $15,000, and possibly more, for the upcoming school year, as well as the possibility of discontinuing seventh and eighth grades in the future and becoming a K-6 school, which would send middle school students to St. Ignace. Nineteen students attend seventh and eighth grade at Gros Cap.

Pete Everson, superintendent of the Eastern Upper Peninsula Intermediate School District, presided over the meeting, which was attended by nine residents from Moran Township. After meeting with Mike Springsteen, superintendent of St. Ignace Area Schools, and Bill Peltier, superintendent of Moran Township Schools, Mr. Everson said the two sides agreed that it would be in the best interest of both districts to have an open dialogue about how the two districts might collaborate to provide the best opportunities for students.

Outlining how each school district is funded, Mr. Everson explained that roughly two-thirds of the revenue for St. Ignace is acquired by state aid, which is determined by the number of students enrolled in the district. Moran Township, by contrast, is funded by a fixed millage on non-homestead property that generates about $900,000 in state aid for the school each year, which will remain intact regardless of the number of students.

Both districts participate in school of choice options that allow students to transfer between districts, with Moran Township having a limited enrollment only for elementary grades. Gros Cap, with 80 students in K-8, enrolls 40 from the St. Ignace district, according to an audit conducted last September. On the other hand, 65 students from Moran Township attend school at St. Ignace Area Schools.

The main dilemma for St. Ignace, which faces a $345,000 general fund deficit next year, is that it can only generate more income by increasing student enrollment, Mr. Everson said. According to the state’s formula, the district will receive $7,151 per student next year.

Opening the discussion, Mr. Springsteen said, because of its budget deficit, the district has been compelled to significantly cut funding to its athletic program in recent years. The district's general fund has contributed as much as $120,000 to athletics in the past, but that amount has progressively diminished in recent years, with only $50,000 spent the last two years and $20,000 allocated for the coming school year.

Mr. Springsteen said that the athletic fund requires at least $70,000 just to maintain the programs, and, unless it receives more funding, the district will either have it cut its athletic programs after next year or implement a pay-to-play policy to maintain them.

While athletics comprise a comparatively small portion of the overall budget, he pointed out that the district has made numerous cuts to its academic programs and staff, laying off about 75% of its personnel since 2004.

“We've looked at as many areas as we can,” he said, “but we've gotten to the point where we can't cut anymore.”

Mr. Peltier responded that if Moran Township students are not allowed to participate in athletics or band, the long term consequences could be devastating. The district has already offered St. Ignace an additional $15,000 to keep its band and athletic programs available to Gros Cap students next year. That and the money already given to St. Ignace for the programs is the amount it estimates would be required to offer its own programs for students.

Last year, 32 Gros Cap students participated in St. Ignace programs. Twenty-one Gros Cap students in grades six, seven, and eight were enrolled in the band programs at St. Ignace and 11 seventh and eighth graders participated in St. Ignace athletic programs.

Mr. Peltier said St. Ignace already receives $22,700 from Gros Cap, including $11,000 for band, $7,200 for athletics, and $4,500 for Band Director Jason Byma, and the additional $15,000 would bring the total to $37,700. That, he said, is roughly the equivalent of five students transferring to St. Ignace and generating $7,200 in per-pupil state aid.

“It's a solution that seems rather shortsighted,” he said of the participation policy. “The question is the long term impact and the unintended consequences. We want to be able to keep our school open [in the future].”

He pointed out that if the school closes, the district would lose $900,000 in state funding, something that would ultimately have a negative impact on all schools in the area. He said that, if needed, Moran Township might consider discontinuing seventh and eighth grade to stay open in the future. As a K-6 school, the district would have a bet- ter teacher-student ratio and would be able to maintain a balanced budget for four years, he said.

Agreeing with Mr. Peltier, St. Ignace trustee Ronn Farr said the long term outcome of the exclusion policy could backfire.

“The long term effects bother me, and I'm hoping we can find a way to keep all of the programs intact,” he said, “because, ultimately, we're all going to be back together at the high school, anyway.”

During the public comment session, Moran Township resident Jeff Cryderman pointed out that the participation policy could jeopardize athletic programs at the school if not enough Gros Cap students transfer.

“We're going to lose these programs at the high school level,” he said. “Five of those kids aren't going to save the programs. You're collecting more state aid, but you're only taking a small percentage of it for these programs.”

Responding to the discussion, Mr. Springsteen conceded that the policy could have an unintended impact if St. Ignace doesn't acquire the majority of Gros Cap students. He concluded that the district is willing to continue discussion with Moran Township to consider better long term solutions.

“We need to keep the kids together somehow in these programs ,” he said. “Our intention is to try to get all of the kids to come to St. Ignace, and, as I said before, it would backfire if we didn't get most of them.”

The committees agreed to continue discussions on the issue in the fall, and scheduled a joint committee meeting at St. Ignace Middle School Wednesday, August 25, at 6 p.m.