09-24-1984 Council Packet - Laserfiche WebLink

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ORONO INDEPENDENT SCHOOL DISTRICT NO.279 MOOIMDIKI LAYt La[l Y✓Ll eLAiM YL DIea YiYMLT(mlex aIACM • Ost W 0 FACT SHEET ORDWO SCHOOL DISTRICT LEVY REFERENDUM Vhv is a referendum needed At this time? There are several adverse factors which continue to impact heavily on your school district's financial sit us tion: - Even though valuations have increased considerably on many hotel in the district, under the State Foundation Aid formula this does tot provide additional school revenue. (When property tames rise bees use of increases in adjusted valuation figures used by the state, the state automatically decreases its coo tribution to local schools, so school revenues do not rise.) - As enrollment continues to decline, aids and levies are tedured proportionately by the State, Mich represents hundreds of thousands in aarulAtive aid loss. but many school torts are ralatively fixed And manor be reduced proportioastely. - In the early 60's the State fared a recession And cot aids to school districts. During 1982-83 ou; budget was set, contrscts negotiated, And commitments made on a budget based on $1416 aid per pupil unit. We actually received $1316 per unit resulting in a loss to our district of $252,200. - During 1982-83, the lsgtslsture shifted $1.2 million of Orton's 1983-84 property tames to the 1982-83 year, and reduced Our state Aid by that amount. This huge cash loss not only wiped Out Met of the district's investment income but forre.d us into short-term borrowing to meet snnval operating arysnses. - to M "4 the aid form,, is we, set at $1473 per pupil we It And frozen at that some figure for the 1984-85 scbool year. - for IISS-86 the range of pupil omit increase grouted by the 1 Sslatute among 29 metro districts was from 5.12 to 12.0I. Orono's 19 At 5.92, along the five lowest. With a projected decl lne of 67 pupil units in that vale (12), the Oct reven.w Lcrasse will be about 3I. - The previous referendum in 1982 provided partial relief, but the board stated at that time that "additional funds from this referendum are a temporary solution for long-range funding prohlva." alms called for A �scmd referendum in 2-3 years. - Additional funds, if approved nw, will be realized beglanIng with the 1465-86 school year And will offset most of a projected deficit through 198r 7. 3t What has already been done by your board' The district has continued to reduce administration, teachers, support staff, suprl-es. ead textbooks as enrollment declined. Lnergv-ssvini me&&area have ben initiated. Without the 1932 referenduum and the following economy maasures taken, the district's deficit would now be at 61,135,000. - Kept* Plain Elements" was closed in 1982 saving the district S130,000 snnua'1%. plus $30,000 to ads Sciattativ costs, A lessee fa being sought to provide additional revenue.