By JOHN EBY
Dowagiac Daily News

Only retiring board member Bill Lawrence voted against it, but the rest of the Dowagiac school board was on the same page when they saw the preliminary 2010-2011 with a $485,518 deficit that will eat away in two years 25 percent of a $4 million fund equity that had existed.

“A word of caution,” Michelle Helmuth said. “We don’t want to allow our district to go that direction.”

At a budget hearing prior to the 7 p.m. Board of Education meeting June 21 in the middle school cafeteria, Assistant Superintendent for Business and Operations Hal Davis explained “assumptions” on which he built the conservative spending plan, which assumes 73 fewer students.

In addition to the 73-student loss to an enrollment of 2,373, Davis expects a state aid foundation allowance of $7,151, or $165 less and a 2.47-percent retirement rate increase to 19.41 percent.

Another factor will be salary increases provided in negotiated contracts, although May 17 Superintendent Peg Stowers informed the board that administrators and non-certified staff would see their pay frozen for the third time since 2000 to reach $2 million in budget reductions.

Davis assumed all grants would be funded at break even, $150,000 in fund equity projects for a bus and roofing and a potential state pro-ration of $268 per student, although Dowagiac Education Association President Keith Klann disputed whether that is likely.

Davis was able to save $12,000 on a 24-percent rate hike by switching property insurance carriers to SET SEG, which represents more than 400 school Michigan school districts.

“It was significant to me, so we went out to bid,” he said. “It keeps our premium about where it is now.”

Davis also noted that the district has recovered about $24,000 from spring break storm damage to the high school.

General fund budget revenues are projected at $18,937,720.

Expenses are forecast at $19,423,238, leaving a projected deficit of $485,518.

The school service fund budget (food service and athletics) balances at $1,562,355.

The debt retirement budget projects a millage rate of 2.65 mills for 2010-2011 on all real property.

The final budget revision the board adopted for 2009-2010 on a motion by Sherry File shows general fund revenues up $28,468 to $20,991,351 while expenses decreased to $21,403,094 (-$262,937, leaving the revised year-end general fund deficit June 30 $411,743 for the fiscal year.

“Revenues increased mainly as a result of an insurance claim for storm damage,” Davis reported. “Expenses decreased as a result of lower-than-anticipated tax write-offs, fuel costs and utilities expenses.”

The athletic and food service funds end the school year balanced at $415,382 and $1,090,045, respectively.

During discussion on selecting Dr. Mark Daniel to be Dowagiac’s next superintendent, Helmuth asked whether board members who visited Indiana found he created innovative programs about which he talked.

“We met with at least eight to 10 community members,” Sherry File said, “and probably 12 staff members. He was the innovator who initiated every program, including with big corporations. They have externships they offer their teachers to go into businesses and see how it is done. Other schools use (Leo) as a model.”

Added Larry Seurynck, a former college instructor: “A lot of times he would inspire people who were in opposition to take on a program and create something in a way that was their own. I found it extremely unusual that an individual from education was thought of so highly by executives from Raytheon (a defense contractor), the hospital and the city manager.”

Helmuth asked about his lower-grade leadership skills since the Fort Wayne graduate’s been guiding a junior-senior high school for the past 13 years.

President Randy Cuthbert said they met a former administrator who worked with Daniel. She had been a teacher when he arrived “and was very active in the community and with parents. He had elementary staff relationships and knew the curriculum K-6.”

“As a motivator, he will get the tools necessary to be successful and be looking at the data to see problem areas,” File said. “He has a real gift for kids to discover their passions and he feels that’s important to start at the elementary level.”

Helmuth admitted, “My first reaction was, ‘Fort Wayne is big, it’s not the same community as Dowagiac.’ But then I turned back to do we want to limit ourselves in leadership if he could push us to be better and not use our socio-economics we have in our community as a crutch?”

Daniel was the candidate early on who advised the board he was interviewing Dowagiac as well because with his four daughters grown, he and Janet were looking for a place to “downsize.”

In File’s assessment, “I think he’s ready to move to a bigger challenge. He’s in charge of a high school in a district with four. He thinks he’d like to tackle diversity.”

“If he didn’t see potential and opportunity and the strong, strong likelihood of success, he wouldn’t be interested in this district,” Seurynck said. Albion’s “Fred Clarke is a remarkable administrator, so we knew Friday we had a candidate. The pressure was off that we would have to go again. What we saw (Monday in Indiana) makes it an easy decision at this point. Dowagiac brings a lot to the table. Our district is poised to go to the next level.”
File said one of her initial concerns was that Daniel inherited a school that was already performing well, though she conceded, “He has brought scores up even from where they were before. It became apparent to me he has the tools and a lot to offer. The visit changed my view.”

Daniel earned a business degree, so his goals transcend academics to “prepare people for life and post-secondary education or a trade,” Seurynck said. “The goal of the education they offer is to prepare every student by identifying their passion and inspiring them to pursue it.”

Mark Dobberstein recalled his college graduation’s speaker had risen from modest means and an unheralded high school, relying on diligence to rise to manager of one of the country’s largest retirement investment funds.

He equated a college degree to a mere tool “that has to be used and honed into a skill that needs to be applied versus hoping success comes to you.”

Building on Helmuth’s observation, Dobberstein said, “Our socio-economic challenges and Michigan’s economic challenges are a crutch. The only time I’ve had to use a crutch was to heal an injury. Unfortunately, our state funding is a wound, but I also think it’s time to put down that crutch and be accountable as board members, administrators, teachers and, frankly, as parents.

“We won’t be successful as a district unless we all are willing to take a little bit of ownership and go forward — and not find excuses for what we have done,” Dobberstein said. “I’m excited to see what Dr. Daniel can do and for the whole district to be committed to positive change.”

“Mark Daniel can take us to another level if we as a board and a community support him and the administration,” Cuthbert said. “It’s going to be a learning experience for him. It’s his first superintendency.”