By By JOHN EBY / Dowagiac Daily News
It's a classic "good news/bad news" scenario for Dowagiac Superintendent of Schools Larry Crandall.
After three years of stagnant state aid, Gov. Jennifer Granholm's 2005-2006 fiscal year budget proposes an increase of $175 per pupil grades K-8 and $225 for grades 9-12, but for local officials it may only offset a projected enrollment decline.
Crandall, reporting on Schools of Choice to the school board Monday night at Central Middle School, said the district saw a net gain of 40 students this year.
The district reaped a net enrollment increase of 120 students since 2000.
It's easier, however, for Dowagiac to tabulate students entering the district because of Schools of Choice than those who leave, Crandall said.
With the state fiscal year starting Oct. 1, "This is the early stage of the budgeting process," Crandall cautioned. "What has to occur is that the Legislature must ultimately approve the governor's budget.
Another aspect, Crandall said, is that the school aid fund covers K-12 education only. The general fund absorbs the state's other expenses. The school aid fund anticipates a surplus. "We have not had an increase in our school aid foundation in three years," he said.
"The bad news is we are likely to experience a decline in our district for next school year," Crandall said. "We have finished our preliminary enrollment projections. Indications are that we can anticipate an enrollment decline next year," when the state aid foundation amount could be $6,875 per K-8 student and $6,925 per 9-12 student.
Expenses are increasing, including negotiated salary increases, insurance and retirement.
Employees took a pay freeze this year. "Everyone stepped up to the plate," Crandall said, "but it's unreasonable to expect that's going to continue."
The board must approve a budget in June for the coming year.