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!

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