News Photo by Julie Goldberg Ella White Elementary School students work on their Chromebooks on Tuesday.

ALPENA — In 2018, five years after Alpena Public Schools employees took a 10% pay cut to help the district out of a budget deficit, the average teacher salary in Alpena was still $9,000 less than before the cut.

The district was $1.6 million in the red by summer 2014. Between June 2013 and June 2014, the district cut $1.5 million in salaries, according to district audits.

In addition to the pay cuts, the district has worked the last few years to build its budget back up by putting off purchases and building repairs whenever possible.

It’s worked. The district started this fiscal year with $4 million in the bank.

The better financial picture has helped ease some of the pain, as the district added a net $1.1 million back to its payroll by June 2018, according to the audits.

But sacrifices still are being made.

“Since then, we have had some units and some years with zero raises,” Alpena teachers union president Mary Daoust said. “Other years, miniscule raises, and none of the units are at the pay that they were at the time of that 10% pay cut.”

Superintendent John VanWagoner said many factors affect average salary, including seniority, teachers’ education level, and annual step increases guaranteed in the teachers contract. He said the district has hired several new employees who start out at the lower end of the pay scale, bringing down the overall average.

Having escaped deficit, the district is able to buy students more supplies and offer more programs than they would have been able to when the district was broke.

But, because district leaders want to protect the savings that has been built up to avoid another financial crisis, school leaders still are putting off building repairs and other needs.

“I want to celebrate the fact that there was a lot of burden on the teachers and employees, but everyone did it for the good of the kids and the district,” Alpena High School teacher Melissa Doubek said. “Our government needs to work together to find better ways to fund our schools in a consistent and equitable manner.”

‘WE CAN SPEND MONEY … ON CLASSROOM SUPPLIES’

VanWagoner, hired by the district in June 2016, said a $470 per student cut from the state schools budget in the 2011-12 school year contributed to Alpena’s 2014 deficit.

The state is giving schools more today, with per-pupil payments rising from $7,126 during the 2014-15 school year to $7,871 last school year, according to the Michigan Department of Education. The per-pupil amount rose again this year.

Since VanWagoner has been with the district, the state has required APS keep enough money in the bank to cover at least 5% of its annual expenses to avoid possible state takeover.

The district’s Board of Education, though, has a policy to keep at least 10% in the bank to avoid having to borrow money over the summer to pay bills and make payroll.

“We are now at a point where we don’t have to do that, and we can spend the money we would pay in interest on classroom supplies, like textbooks, paper, and pencils,” VanWagoner said.

The district also expects an economic downturn sometime, which could hurt its revenue. So the Michigan School Business Officials Association recommends the district have at least 15% fund equity to try and weather the storm.

VanWagoner said many districts try to have 25% of fund equity for those situations.

Alpena currently has 9.8% fund equity.

Because school leaders want to build up cash savings, the district hasn’t been able to make repairs to buildings. Voters in May rejected the sale of up to $63 million in bonds that would have funded major facilities upgrades and been repaid through increased property taxes.

“Roofs are falling apart and heating systems are aging beyond repair,” VanWagoner said.

The district has worked every year to keep its bus fleet up-to-date, but it’s been hard, with a tight budget. VanWagoner said the district should purchase four buses every year, but it can’t. It was only able to purchase one bus this year. That bus cost the district $90,040.

While the buses are safe, “we have some buses on the road that are over 15 years old, with 250,000-plus miles on them,” VanWagoner said. “Buses are old, rusting out, and breaking down.”

‘GIFTS OF GENEROSITY’

APS’s bottom line has been helped by several large grants the past couple of years.

The state in December awarded a Marshall Plan for Talent grant to APS and neighboring districts for Alpena High’s Career and Technical Education program to help make students to career- and college-ready when graduating high school.

Last month, the district received $413,000 from the Besser Foundation for individual student computer purchases, improving the athletic field, and other educational uses.

In May, the district received $600,000 in large donations from a family endowment fund and other sources to install a new artificial turf field at Wildcat Stadium at Alpena High.

“The gifts of generosity and grant awards have allowed us to do some great things for our students that we simply could not do on our own,” VanWagoner said.

Thousands of dollars in grants from the Besser Foundation also helped the district purchase enough Chromebook computers so each student can have one assigned to him or her. Grants have helped expand APS curriculum in the Career and Technical Education program, add certification programs, buy professional equipment, and hire career navigators.

Some APS programs have thrived because of grants, but others are surviving with basic needs because grants have not been available for those, Van Wagoner said.

Though the grants are a positive thing for the district, VanWagoner said those haven’t helped the district fully get out of its financial issues.

Julie Goldberg can be reached at 989-358-5688 or jgoldberg@thealpenanews.com. Follow her on Twitter @jkgoldberg12.

Average teacher salary, by year

A look at the average teacher salary in Alpena Public Schools each school year.

2011-12: $64,335

2012-13: $64,902

2013-14: $63,312

2014-15: $54,457

2015-16: $54,983

2016-17: $55,048

2017-18: $55,584

Source: Michigan Department of

Education