Representing less than a few days of operating cash!

No comment on the cost problem - health care,

pension, base pay increases raising faster than
inflation.

This is a long term structural problem

 Representing less than 27 days of operating funds! This is a very small
"cushion"

And if spent this way, will lead districts to insolvency and state take over.

A complete fabrication, find a district that has done this in the last decade.
Fund balances are remnants of Prop A and are eroding rapidly.
 In what world is it OK to throw away 1.24% of your funding on top of the
cuts that have already been made? This is the height of irresponsibility.

What about tax payers that are dealing with 10%, 20% salary cuts,
reductions in benefits, and economic uncertainty? Many districts have tried
and taxpayers have rejected sinking funds. They already pay too much in
taxes and never see any "shared sacrifice" from the public sector, this just
validates that view. Existing fund equity is the ONLY way these types of
expenses will be paid.
 Districts are spending equity. Smart
districts will do so with a purpose with
help from their employees. Districts that
spend without a plan will be bankrupt and
taken over by the state. Without cost
cuts, the rain will drown us.

NO MENTION of costs that have accelerated out of control. 20%

per salary dollar to pension fund, and growing, 100% paid for
health insurance; let's be reasonable here...
Ms. Beier, there is a $2 billion problem with the budget in
Michigan. How can you make this statement? Remember, the
$1.9 billion in fund equity represents less than 30 days of
operating cash for schools. Further, every dollar spent on interest,
which is your happy solution, is a dollar not spent in the
classroom.

I could not agree more, BUT, structural change MUST

deal with both COSTS AND REVENUES!