On July 25 the Van Buren Public Schools Board of Education was poised to lay off 10 secretaries and replace them with workers from an employment agency.
Reports said negotiations had reached an impasse, following the union negotiator going on vacation and the district lawyer taking the July 4 holiday weekend off.
But, a standing-room-only crowd on July 25 urged the board to reconsider and give them more time.
The secretarial union was given two more days to negotiate with the school district — until the July 27 special meeting set to adopt a Deficit Elimination Plan to send to the state by the end of the month.
At issue were concessions needed by the school district from the secretaries in order to support the district’s Deficit Elimination Plan.
On July 27, after a 13-minute closed-door session with an attorney to discuss negotiations, Board President Martha Toth announced that a tentative agreement had been reached with the secretaries and they would not be laid off, after all.
The proposal to contract secretarial services for a two-year period through EduStaff, LLC was removed from the agenda.
At the July 27 meeting, held at Rawsonville Elementary School, the board also approved the 40-page, two-year Deficit Reduction Plan which had to be immediately sent to the state.
In addition, the board approved the first amendment to the 2011-2012 deficit budget, which reflected some of the issues that will make the budget go down.
Mike Dixon, business office consultant, said the proposed new contract with the secretaries will save $200,000 this year.
With concessions from other unions, the $2.26 million deficit is theoretically reduced to $1.6 million deficit.
Dixon said the state gives the district two years to eliminate the deficit. But, he warned, the $1.6 million rolls over to $3.2 million the next year.
Under the plan approved by the board, the district will end up $32,000 in the black at the end of the 2012-13 school year.
For the second year of the plan, assumptions include 6% across-the-board pay cuts, everyone paying 20% of their health care premiums, laying off 20 teachers, closing an elementary school, and an assumption of a $250 per-pupil raise in foundation allowance.
Also, student count is always a challenge, Dixon said, adding the assumption is a loss of 78 students this year and another 78 in 2012-13.
Dixon said those numbers are likely to change and after this year’s official fall student count, he will get a professional to forecast the student count for the following year.
He said getting 6% in wage concessions from everyone is vital and could be a problem, “especially if you don’t get it from the teachers.” He said if the teachers don’t give up the 6%, the budget can’t balance.
President Toth pointed out there are two new charter high schools opening just outside the district and, “We may lose more students to them.”
Trustee Scott Russell said the Van Buren district is looking at classroom sizes of over 30 students and if that happens, “The district will lose even more kids.
“The least we can do is reach out to the VBEA,” Russell said. “If they say no, it sends a message to the community. We should at least ask.”
Toth explained that the teachers’ step increases cost $700,000 to $800,000 a year, there has been $1 million more in cost for the state retirement plans, and $2 million more cost for health insurance. In addition, the district lost two big chunks of money all at once: $2.6 million from the state and $2.7 million from federal sources.
“That’s why we are having to ask our employees for 6%,” Toth said.
“We’ve got a plan that’s balanced in two years, but the details may be challenged by the state,” Dixon said.
He said while Van Buren’s deficit situation is not high on the state’s radar,
he expects to hear from the state in four to six weeks, and the district’s audit may be done by then and they’ll have some firm figures.
“We’ll have trouble with this in Lansing,” Dixon predicted referring to the Deficit Elimination Plan. “Some assumptions are too far-reaching.”
He said the state may get in a volleyball game with the business office, going back and forth on details.
“But, without relief from the teachers’ association, we won’t get there,” Dixon repeated.
Each bargaining unit was asked to cut enough to pay proportionally for its share of the deficit. The administrators will be giving up some $400,000, Toth said.
Toth said in order to comply with state mandates, the district must go out for bids for at least one service that costs over $150,000 and the district will be seeking transportation bids. She said the district might be required to outsource at least one service.
One school bus driver told the board the drivers wake up every morning wondering if they have a job.
Trustee Toni Hunt said she is not happy with all the cuts. “It’s a long tunnel and we’ve got to get to the other side,” she said.
The board also approved the reduction of one administrative staff member with the layoff of Steve Hudock, who had been an assistant principal at North Middle School. His position was eliminated and Hudock, with 14 years of experience, was returned to the classroom.
School Supt. Thomas Riutta said Hudock did an outstanding job at North and he is a candidate for principal at South Middle School.
Trustee Sherry Frazier wanted to set up a committee to have community members, teachers, administrators, and board members sit down together to discuss what to cut.
“We have less control than ever,” Toth said, adding such a committee would hold out false hopes. She said the state says, “Do this, do this. We need to hurt you this much. Do you want it out of salary, health care or vacation?”
John Haas, who has experience in labor relations and now is a labor representative for public employees, offered his expertise to help the district.
“You need to have a plan and every one of the unions has to believe in that plan. You need a comprehensive plan for the entire cycle,” Haas said. “That helps to instill confidence. I would like to volunteer my time to do whatever I can to help.”
Frazier made a motion to form a committee to create a long-term plan for the district and Trustee Scott Russell supported the motion.
After much discussion and amendments, the motion failed 2-5.
The item will be put on the next regular board meeting agenda (Aug. 
for discussion and possible action, at the request of Russell.
Russell also asked his proposal to have four quarterly town hall meetings to discuss and act on ideas from the community.
Trustee Kevin English asked an item be put on that agenda for board members to forego compensation. The total budget for board compensation is $10,000.