Help me understand - Lakewood Schools Budget Crisis

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Bryan Schwegler
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Joined: Fri Jun 24, 2005 4:23 pm
Location: Lakewood

Help me understand - Lakewood Schools Budget Crisis

Post by Bryan Schwegler »

So here's the article:
http://www.cleveland.com/sunpostherald/ ... ng_bi.html

LAKEWOOD The district’s fiscal outlook darkened dramatically as school officials brace for what will likely be one of the worst budget crunches in years.
During a town hall meeting on Oct. 20 at Emerson Elementary School, faculty, staff, administrators and parents reacted to Superintendent Joseph Madak’s remarks that were made in regard to a host of projected multi-million and multi-billion dollar budget shortfalls that may hit the district and state in succession from 2010-13.


So am I to believe that the district didn't know this was coming when they just asked for a levy increase? Should they have asked for more?
Danielle Masters
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Joined: Sat Jul 09, 2005 12:39 am
Location: Lakewood, OH

Re: Help me understand - Lakewood Schools Budget Crisis

Post by Danielle Masters »

From what I remember before the levy was passed Dr. Madak made it quite clear that the amount they were asking for was just enough to get by. They knew they needed more but felt that the amount they asked for was what they needed just to scrape by. So I guess that means yes they knew they needed more. I do believe from some budget presentations before the community meetings was that the finances got worse because of less money coming in from the state and more defaults on property taxes. Of course I am by no means an expert I can only go off the information that was given during school board meetings over the past years.
Kate McCarthy
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Joined: Mon Jun 20, 2005 1:25 pm
Location: Lakewood

Re: Help me understand - Lakewood Schools Budget Crisis

Post by Kate McCarthy »

Bryan Schwegler wrote:So am I to believe that the district didn't know this was coming when they just asked for a levy increase? Should they have asked for more?


Dr. Madak addressed this question at the town hall meeting I attended at Harding Middle School. He said the amount they went for was the most they felt very confident would pass according to pollling...basically if they went for more the levy could have very well failed which would have resulted in draconian cuts.

There are a lot of variables at play here, especially around the state budget. I did get the impression from the presentation that what is happening at the state level is going to start to affect all school districts, just some sooner than later.
Christina McCallum
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Re: Help me understand - Lakewood Schools Budget Crisis

Post by Christina McCallum »

My impression of the District's financial situation, from Dr. Madak's presentation at the 10/12 forum, is that districts all over are in the same situation as us. Additionally, he mentioned a professional meeting that he and (I think) Rick Berdine attended to discuss financial issues districts are facing, and at this meeting people were asking Dr. Madak and Rick how Lakewood was in such a GOOD place financially (relatively speaking).

Dr. Madak also shared slides with data from a national study about how districts across the nation are faring in the current financial situation. The slides showed in percentages the number districts that RIF'd people, did not fill open positions, offered early retirement, etc. during 2009-10 vs. 2010-11 years to save funds. In most categories, well over 50% of districts made such cuts/changes in order to manage finances for the 2010-11 school year. These numbers were up from the teens to low twenties from the previous year.

Another slide from the same study focused on classroom effects and what this meant for classes offered. Again, more than 50% of districts recorded cutting electives ie music, art, gym; imposing/increasing pay to play fees; etc for this school year. The percent change again shot up from numbers in the teens and low twenties to over 50%.

I would imagine Dr. Madak did not change his presentation between 10/12 and 10/20. I would think the slides I mentioned above will be on the website/filming or wherever, or that the District would provide those if asked.

The larger picture is that the State's funding method and financial constraints will effect all districts. The difference is that Lakewood is publicly talking about it.
Bryan Schwegler
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Re: Help me understand - Lakewood Schools Budget Crisis

Post by Bryan Schwegler »

So I'm going to guess they'll be back next Spring for a levy. I'm going to be super interested to see what kind of concessions the union makes before I vote for more money.... :?
Kristine Pagsuyoin
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Re: Help me understand - Lakewood Schools Budget Crisis

Post by Kristine Pagsuyoin »

So I'm going to guess they'll be back next Spring for a levy. I'm going to be super interested to see what kind of concessions the union makes before I vote for more money....



Bryan, there is much I would like to say about the community meeting and the presentation regarding the budget. For now, let me just say that your question was asked at the meeting that I attended at Harding Middle School. Dr. Madak's answer was that it is possible, but not likely. What was explained to us at this meeting was that the State probably will not be make decisions on school funding until next summer. It is even possible that we may not even know until September 2011. Dr. Madak said that since we wouldn't know the specifics until next year, that putting a levy on the ballot for spring that the district would risk either asking for too little or too much.
David Anderson
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Re: Help me understand - Lakewood Schools Budget Crisis

Post by David Anderson »

It’s funny how homeowners have been vilified because they kept borrowing against the value of their homes assuming that values would appreciate and thus covering all mortgage and LOC bills.

Well, guess who else assumed the same thing? That’s right, those on the local and state level who run the public education system.

Where does the money for public education come from?
50% - local property taxes
44-47% - state of Ohio
3-6% - Federal gov’t

Now, with a close to 10% state unemployment rate, both of the big pots of money are contracting.

Many, including some on this Deck, have tried to get the majority of decision makers to understand that this method is simply unsustainable.

But, what are the alternative(s)? Studies I’ve read profile the possible use of satellite schools, service contracts, operating leases. However, these ideas are drops in the bucket when compared to the huge expenditures of salaries and the escalating costs of benefits.

(My wife found out earlier this week that my current health care plan covers one eye doctor visit for the first 16 years of each of my children. My seven year old daughter recently started to complain that her eyes hurt when reading and now has en eye appointment next month. It's depressing to think that this will be the one and only visit covered by my insurance until she turns 16. My premiums went almost 10% this year and my coverage shrank considerably.)
Justine Cooper
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Joined: Thu Jan 12, 2006 10:12 am
Location: Lakewood

Re: Help me understand - Lakewood Schools Budget Crisis

Post by Justine Cooper »

What union negotiations HAVE occurred thus far? I know in Cleveland there have been pay freezes but also even a step down decrease I believe and three days off in the year without pay, among other things. Of course health insurance rates also went up. Does anyone know what is on the table for Lakewood negotiations when the budget hits the fan?
"Love and compassion are necessities, not luxuries. Without them humanity cannot survive" Dalai Lama
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