February 19, 2007

Senator Jason Allen
P.O. Box 30014
Lansing, MI  48909-7514

Dear Senator Allen:

This letter is to confirm our earlier conversations as it relates to the potential of a mid-year reduction of the State of Michigan’s School Aid Fund.

We are aware that the State finds itself in a fiscal crisis.  This situation is not surprising.  Tom Clay from the Citizens Research Council has been reporting for years that the State’s structural deficit would lead exactly to where we are today.  The issue has been studied intensely and one common denominator from all sides is this: fundamental, structural change is needed to fix the problem.  We agree. 

It is clear from current literature that a number of well-respected economists, including Tom Clay, concur that the fix includes both revenue and expenditure components.  We are supportive of this concept.

In relation to the expenditure side, the Traverse City Area Public Schools educational community wants to emphasize that a current year funding reduction to schools at this point of our fiscal year is irresponsible.  Schools have lived through two mid-year reductions in the last five years and have experienced very little increase in revenue to offset expenditure increases.  Districts such as ours at the base (lowest) funding level have been hit especially hard as the previous two mid-year cuts disproportionately affected our operations both dollar wise and percentage wise.  In other words, the State’s recent cuts took more dollars away from low-funded districts than higher funded districts. 

In spite of these cuts, and in spite of being funded at the lowest possible level, we at Traverse City Area Public Schools have managed to live within our means.  This has not been easy.  It has taken the collective effort of all of our staff to manage through serious budget reductions while still delivering an outstanding educational program dedicated to seeing that all children achieve in core curriculum areas while still providing enriched extra curricular and fine and performing arts opportunities. We at TCAPS have lived within our means while receiving the lowest possible state-funding amount. We have continued to deliver a high quality educational program, but now we struggle to keep pace with new mandates (NCLB, Michigan Merit Curriculum) and to offer the same array and caliber of programming as higher funded school systems to ensure our graduates are equally prepared for a competitive global economy.

We contend that it is imperative that the State holds us, and similarly low-funded schools harmless, regardless of the amount taken from the school aid fund.  As stated in the recently published Michigan’s Defining Moment:  Report of the Emergency Financial Advisory Panel, “Best practices must be employed throughout public institutions.  Government must find better, less expensive ways to deliver public services.”  We are the best practice!  If all schools were funded at our level, there would not be a shortfall in the school aid fund.  It seems non-sensible to us that the State would consider reducing funding to those of us who are not causing the problem.  It seems even more non-sensible that the State has chosen in the past to cut the lowest funded districts more than higher funded districts.

As such, it is my recommendation to you that you hold the lowest funded districts harmless from any state school aid pro-ration.  Additionally, we again ask you, our legislator, to provide your support for equal funding to all students in Michigan regardless of their zip code.  It is time that the discriminatory funding practices that were supposed to be fixed under Proposal A are addressed in a meaningful way.  A constructive start would be to hold the lowest districts harmless from any further consideration of an end of year pro-ration. Furthermore, we encourage you to enhance funding of these schools by reinstating the equity payment language into the State Aid Act that was removed by the Governor.

Thank you for your time and consideration of these perspectives. I would be happy to discuss any of these issues with you.

Sincerely,

TRAVERSE CITY AREA PUBLIC SCHOOLS

James G. Feil
Superintendent