If the current state budget proposal wins approval, Dowagiac Union Schools will be in “severe financial distress within less than two years,” Superintendent Dr. Mark Daniel advised the Board of Education Monday night on the stage of the middle school Performing Arts Center.

“The current state budget proposal would transfer almost $1 billion from the School Aid Fund to help balance the General Fund,” Daniel said. “If this happens, it will be our local school property tax dollars at work in places other than local public K-12 schools.”

“We’ve heard a lot about ‘shared sacrifice,’ but schools are facing a 9.6-percent cut — approximately $700 per student — the largest of any budget except the Department of Education, while 10 other budgets, including the Department of Corrections, are seeing increases,” Daniel read from a prepared statement.

During the past decade or more, he said, Dowagiac Union Schools has been fiscally responsible for the funds it has been entrusted to use.

Even during the last five years of “extreme financial stress caused by our national, state and local economy, DUS has continued to right-size itself to meet the needs of its students while remaining fiscally responsible.”

As a result, Daniel said, the district “has maintained its AA-Standard and Poor’s financial rating, allowing for refinancing of bonds at excellent interest rates that financed the middle school. Just this year, bonds were refinanced at a savings to the district of over $500,000 based on our credit worthiness, which is actually better than the state of Michigan’s credit rating.

“DUS has maintained an equity balance of approximately 18 to 22 percent, which prevents borrowing and paying interest to cover expenses during the summer months when state revenues are not received by the district,” Daniel stated. “It also allows for those unexpected expenses for things like emergency roof repairs, bus replacements, boiler replacements, etc.”

To remain fiscally responsible during this “period of financial distress,” he said staff reductions have been made using retirement incentives, combining positions and duties and shared service agreements with Lewis Cass Intermediate School District.

Other cost-sharing measures have included shared services with the City of Dowagiac, Cass County Sheriff’s Office and Kalamazoo Regional Educational Service Agency (RESA).

“These are things that are being discussed at the state House that should happen in the future, but have already happened here,” Daniel said.

From recent meetings with legislators, “It is clear there is a need for urgency in regards to the general public contacting state legislators,” he said. “Although DUS has been fiscally responsible, the proposed state budget could force DUS into class sizes resulting in middle and high school classrooms of 35+ students and elementary classrooms at 30+ students.

“Let’s work hard to deliver a message from our educators, parents, students and community that will be heard in Lansing regarding Gov. Snyder’s budget proposal,” Daniel said. “Visit www.dowagiacschools.org to find a listing of legislators and suggested talking points. Action is needed or DUS will be in a survival mode with reduced educational programs and services attempting to meet the educational needs of DUS students.”