Gov. Rick Snyder says his administration is working to resolve a financial crisis that has shut down classes in one Michigan school district for 3 days.
The Buena Vista School District says it can't afford to pay its teachers and failed to hold classes Thursday for a third straight day.
Snyder's comments came after Democratic U.S. Rep. Dan Kildee of Flint called on the Republican governor to use his authority to get emergency funds to the district. The state has been withholding aid to recoup a previous overpayment.
Snyder told reporters Thursday that one option could be to send students to nearby school districts, though Snyder says there are some legal constraints.
The school board is meeting Thursday evening, and President Randy L. Jackson the district it plans to declare a financial emergency.
Kildee says the governor should use his authority to get emergency funds to the district. The state has been withholding aid to recoup a previous overpayment. Snyder stated that he would not use the state's Rainy Day Funds to reopen B.V. schools. You can watch his question and answer session in the video player above.
The school district has listed commonly asked questions about the financial crisis on its website, and they are listed out below:
REGARDING THE BUENA VISTA SCHOOL DISTRICT BUDGET CRISIS
Buena Vista School District and its community of parents and stakeholders has a long tradition of pride and excellence. We pride ourselves on the caring and committed staff with which we are blessed and consider it our highest calling to be entrusted with the care and education of the community's children.
Recent reductions in state school aid, combined with a severe drop in enrollment have created a situation where the District has not been able to get small enough fast enough. Adding to this problem is the fact that the District must return to the state funds related to the Wolverine Secure Treatment Center which it continued to receive after the program severed ties with the District in 2012. The District brought its receipt of these funds to the attention of the State during a meeting with state officials to discuss a draft of its deficit elimination plan in February. All of this came into focus when the State did not transmit the District's April state school aid.
Upon noting that state school aid was not received in April as planned, the District made inquiry of the State and was told that state school aid for April, May and June would be withheld to recoup the funds that were mistakenly sent to the District. We remain in contact with officials at the State, the Intermediate School District and our surrounding districts. We have been told by State officials that a prerequisite to continuing dialogue is the District's completion of a satisfactory deficit elimination plan. We are and have been working diligently to meet this requirement, and appreciate the technical assistance that State officials have provided regarding the deficit elimination plan.
1. Why have almost all staff been laid off?
With very few exceptions, the District has laid off its staff. This step is necessary due to the fact that the District will not receive state school aid for April, May and June of 2013.
Due to the suddenness of the recoupment and the fact that it involves an embargo of all of the
District's remaining state school aid for FY 13, which is the source of most of the District's revenue, there are no funds from which to draw in order to make payroll.
We brought this situation to the attention of staff just as soon as it could be responsibly confirmed that there was no way, under current projections, payroll could be met. Although the
decision to undertake the layoffs was a difficult one, we believe the alternative would be grossly unfair to staff, whom we value.
2. Will health insurance benefits be continued?
In addition to laying off most staff, the District has terminated its benefit plans (including health) for all staff. As a self-funded district for health insurance purposes, the District has no funds to use for payment of claims.
3. Teachers have offered to work for free until Friday, May 10. Why did the District lay them off?
The dedication of our staff at all levels is unparalleled. We have heard their stories of daily sacrifice in the care of students and believe they are entitled to the utmost respect. However, Michigan law requires that employers pay employees for work performed. We thank the teaching staff for their dedication, and understand their frustration. However, we must follow the law. Over the past day, many staff who have been laid off have asked how they may volunteer their time. Staff who make the personal decision to do so should contact the District regarding the logistics of that volunteering. However, we must stress that under current circumstances, there is no ability to compensate staff for their services and there is no indication that there will be money for such compensation at any time in the future.
4. Does the District expect to recall any staff?
The District's ability to recall staff will depend on whether it is able to receive any funds which it can use for that purpose. Without funding, our ability to make payroll is nonexistent.
5. How will my son/daughter be able to finish the school year?
Under the current circumstances, there is no plan to re-hire staff to complete the current school year. This situation is a source of great pain for the school board and administration. Whatever the cause of the current financial crisis, it is not the children of the District. Through this process, we are doing our very best to meet all requirements of the State, so that we can ascertain if assistance in the form of funding could be forthcoming. However, we must be clear that at this point, the District has spent all of the state aid it is entitled to receive for FY 13.
6. Will there be a school district next year?
It is impossible for us to predict whether the District will be in a position to enroll students next year. During this period of time, all of our efforts are being directed toward an attempt to secure as smooth a completion of the current year as possible, given the circumstances.
7. How should teachers and staff obtain their belongings from their classrooms and work areas?
The District buildings will remain open and, we understand, the Principals have volunteered to remain in their buildings, on an unpaid basis, into the indefinite future. Staff should report to their building principals and, in an orderly fashion, collect their belongings. Additionally, staff should turn in, to their building principal, their school-issued items, such as keys, phones, laptops, etc.
For the sake of order, we ask that these tasks be completed by Friday, May 10, 2013.
Copyright 2013 WNEM (Meredith Corporation). All rights reserved. The Associated Press contributed to this report.