School districts are getting a break in funding cuts after the governor canceled a $127-per-student decrease, but local districts are already worried about problems looming for next year.

Now that revenues have stabilized and the state has ended up with about $150 million more than expected, Gov. Jennifer Granholm said M onday that the $127-per-student cut won’t need to happen.

“I appreciate it, but we have to be realistic,” said Saugatuck Superintendent Rolfe Timmerman about the funding restoration. Saugatuck has been among the hardest hit local districts.

Saugatuck is still planning to lay off three teachers on Jan. 18, the first area district to make such drastic mid-year cuts.

The district has a $655,000 budget deficit due to cuts in state funding and has already made $300,000 in cuts for this year and will use $355,000 from its fund equity — money held in reserve — to balance the $8.6 million 2009-2010 general fund budget.

The restoration of the $127-per-student funding will bring $107,000 back into Saugatuck’s budget, but won’t halt cuts that Timmerman calls inevitable.

“It’s my responsibility to look long term,” he said.

The state first cut $165 per pupil for all districts, then another $127. Saugatuck was one of 39 districts in the state — and the only locally — also hit with a $300-per-pupil cut that impacted “20-j” districts, those areas allowed to keep state funding above the state base level after Proposal A was approved in 1994.

Hamilton Community Schools planned for the $127 per student cut in its latest $24.1 million general fund budget, according to Business Manager Steve Aardema.

The fund restoration means another $330,000 available in the budget.

Hamilton has no plans for layoffs.

“We’re still going to operate without making cuts,” he added.

Zeeland Public Schools will see about $710,000 come back into its $46 million general fund budget, according to Superintendent Gary Feenstra. The money will go into the district’s fund balance.

“We’re always pleased when we don’t have to cut dollars mid-year,” he said.

Aardema said he is waiting for a Jan. 11 state revenue estimating conference that will give districts a glimpse into next year’s funding.

Timmerman expects next year to be difficult, expecting another $300 per pupil cut in funding.

More cuts combined with rising health care costs could bankrupt the lakeshore district, he said.
Granholm says Michigan needs to change how it pays for education. She plans to address that in the budget proposal she’ll release in February.

“We’re preparing ourselves for continued revenue reductions,” Feenstra said.