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No one, other than staff, showed up for the board's final budget hearing at the Administration and Service Center Thursday night and the board quietly approved a $53.7 million general revenue budget for the 2008-09 school year. That's $2.4 million less than what the district spent in the 2005-06 school year.

Assistant Superintendent Kevin Rose, said the district was able to avoid even more cuts by moving $1 million from its fund balance. That will drop the fund balance, essentially the district's savings account, from a high of 16.82% at the end of the 2006-07 school year to 13.01%.

Rose said the district has avoided last minute budget slashing common across the state by making the difficult decisions early on.

Teacher retirements will save the District about $900,000, but the addition of needed new teachers and staff will offset that by $120,000 for a net saving of about $780,000. A new all-day, every other day kindergarten program will save the District $91,000.

District plans to purchase five new school buses this year were reduced to three new vehicles, saving another $150,000. Eliminating the district subsidy to pre-school programs and making them dependent on grants saves another $80,000. Restructuring the delivery of certain special education services saved another $75,000. A former full-time communications position was reduced to part-time, saving another $40,000.

LCS continues to seek reductions in areas like supplies, phones and energy costs to further offset losses in state aid. Even with the cuts, the district will maintain a savings account of about $7.1 million or 13% of its budget to meet emergency needs and future shortfalls.

Although the new budget anticipates an increase of more than $145,000 in annual diesel fuel costs to drive the same number of miles next year because of rising fuel prices, it's uncertain how solid a number that will be.

"It is not an easy time to be in education in Michigan," said Superintendent Debbie Thompson. "At the same time we are continuing our mission to provide the best education at the best cost that we can."

Board member Michael Keller complained that Lansing needs to change it's school funding process, which forces schools to borrow money every year because school districts' fiscal year starts months before the state legislature approves funding.

Rose said part of the problem facing administrators at Lapeer Community Schools, is a population bubble that's been moving through the district. He said that bubble means that district's student population will drop by 200 students from its current 6,900 as the tail end of the bubble becomes juniors and seniors.

He said the district's primary goal in the budget setting process has been to make cuts that have the least effect on students.

Phil Foley may be reached at (810) 664-0811, ext. 8148 or pfoley@lapeergroup.com.