LANSING, Mich. (WXYZ) — The Michigan Department of Education Tuesday gave a presentation to the State Board of Education warning the state is predicting multi-billion dollar declines in tax revenue due to COVID-19.
Lawmakers responded telling 7 Action News, school districts could face historic cuts of 10 to 25 percent in per student funding.
“There are going to be some districts that are going to face some dire situations,” said State Senator Wayne Schmidt (R-Traverse City), who is on the subcommittee that addresses school budgets.
“They’re talking potentially up to $2,000 per child cut in foundation grant,” said State Senator Jim Runestad, R-Oakland County.
They are numbers that education leaders say could force some districts into financial ruin. So what would that look like?
“I don’t know how to underscore how devastating that kind of cut would be,” said Dr. RJ Webber, the Assistant Superintendent for Academic Services in Novi.
Dr. Webber says 85% of school costs are personnel. The district would have to cut staff.
“Ten percent could yield 60 to 65 personnel gone. Twenty-five percent? Come on. Now we are looking at a third of our four-hundred-something teachers or the people we have in the district gone,” said Webber.
Rochester Community Schools Superintendent Dr. Robert Shaner adds this is coming as COVID-19 also costs districts money.
Schools have had to spend money to implement distance learning. They are working on plans to eventually provide PPE and find a new way of teaching and transporting children while social distancing.
“For example Rochester Community Schools is 66 square miles. We put over 100 buses on the road on a normal day. We have to socially distance. We have to disinfect buses and classrooms. All of those things are going to be increased costs,” said Dr. Shaner.
“I think it is not realistic to think I can increase my costs by 25% and decrease my revenue by 25%,” said Dr. Shaner.
Governor Gretchen Whitmer said she is not sure how severe the cuts will be, but that tough times are ahead.
“I was on a call with our nation's governors this afternoon because everyone of us is confronting major budget deficits because of COVID-19. We need Congress to step up and give us the support we need,” said Gov. Whitmer.
Governor Gretchen Whitmer said she is not sure how severe the cuts will be, but that tough times are ahead.
In Congress House Democrats have proposed a $3 trillion bill to help states with funding problems caused by COVID-19. School leaders say if there is going to be federal stimulus for schools - they hope it comes before budgets have to be done for the next school year.