4024 West Jefferson

2003 began with news that will impact school districts across the state. Facing a financial deficit, the State of Michigan had to make cuts to several areas of their budget. Most important to school districts is an immediate reduction in state funding of public schools. An issue of even greater concern is the projected decrease in state funding for the 2003-04 budget, which could be three times the amount of this year’s reduction. As members of this community, it is important to understand where and how the district uses the State money it receives.

Revenues from the state make up our operating budget. This money is used to pay employee salaries and benefits, utility bills, maintain buildings, make emergency repairs, purchase equipment, and buy supplies and materials needed to operate the schools. This is typical for a school district since schools provide a service.

In business, when a company needs to increase revenue to balance a budget, they can raise the price of their product or service. A school district cannot do this because revenue does not come from the sale of a product, but rather from taxes collected from the citizens. About 10 years ago, Michigan changed how school districts receive collected tax money.