To make up for the potential need to cut approximately $2.7 million from its budget, Niles Community Schools officials could possibly re-open Eastside School, reorganize its administration or once again explore the need for layoffs.

Members of the district’s school board took a look Monday at what the financial future holds during its scheduled meeting and what it holds is a lot of cuts.

During a financial presentation to the board by Superintendent Richard Weigel, taking into account the proposed state funding reductions for education in Gov. Rick Snyder’s proposed budget plan for 2012-2013, the district could be left with the burden of making $2.7 million in cuts to its own budget.

Those cuts are a result of an estimated $470 less per student, according to the proposal, increases in retirement and insurance for teachers.

The estimated $2.7 million in cuts reflects a fund balance remainder of 5 percent for the district, an estimated total of $1.8 million.

“If we made $1.5 million worth of cuts, we’d be at zero for the year,” Weigel said.

His comments echo many being made by concerned school leaders that their respective districts simply will not be able to handle such a large scale reduction in funding.

Weigel also proposed a number of options to save money and hopefully generate new revenue, which included the need for reductions in some contract positions and the possibility of reopening Eastside school as a magnet school. Magnet schools exist within the public school system but typically offer specialized curriculum as a draw to students.The presentation examined the first step many school officials will be taking in the days and months ahead to trim their budgets as best they can should Snyder’s budget pass as proposed.

What Niles Community Schools is facing

By the numbers

Projecting significant losses in state funding, Niles Community Schools outlined what its finances could look like in the 2011-2012 year:

Estimated revenue — $32.3 million

Estimated budgeted expenditures prior to cuts — $37.1 million

Estimated expenditures over revenues for 2010-2011 — ($4.7 million)

Following adjustments including Edu-Jobs one time funding, a reserve of 5 percent fund equity, the estimated cuts required to maintain that fund balance — $2.7 million

The options

To generate revenue, school officials could consider:

• A re-open of Eastside school as a magnet school

• Attracting students to the district through the New Tech Entrepreneurial Academy

• Studying grant funds to possibly leverage grants to offer all day Kindergarten classes to encourage more students to be in district

• Working on partnership with Lake Michigan College to support instruction at high school level

To save money, school officials could consider:

• Increase the number of high school students participating in dual enrollment and college level classes

• Reduce number of elective classes

• Reduce number of counselors

• Reorganize the central office to decrease personnel

• Reorganize the administration

• Reduce school budgets

• Consolidate services with nearby school districts

• Reduce some contractual positions

Source: Niles Community Schools “Understanding the Michigan Schools Financial Crisis” Feb. 21, 2011