Interim superintendent outlines two-year plan to eliminate Mount Clemens schools' eight-year deficit

Dr. William Pearson, interim superintendent of the Mount Clemens School District, told the City Commission on March 7 that the district can eliminate an eight-year general-fund deficit in two years if enrollment holds and planned cuts and concessions proceed.

"We're going to get out of deficit in two years," Pearson said, outlining what he called an Enhanced Deficit Elimination Plan (EDEP) negotiated with the state treasury and the Michigan Department of Education. He said the district must cut roughly $1.9 million from an $11.5 million general fund and secure about $648,000 in employee salary concessions.

Pearson said the district's strategy bundles several large changes to reduce recurring costs: moving K–5 students from King Elementary to another building (saving an estimated $323,000 by not operating one wing of King as a K–5 facility), eliminating one elementary principal and consolidating secondary principals, reducing maintenance and administrative positions, and converting to the state's "hard cap" insurance option. He said the district also plans targeted curriculum and outreach work after budget stabilization, including restoring art and physical education at the elementary level and adding electives such as robotics and drama at the secondary level.

The presentation included enrollment assumptions and revenue scenarios. Pearson said the district had 1,122 students and grew to about 1,150 this year; the plan assumes enrollment does not fall by more than 10 students per year. "If we change the enrollment to minus 50 you can see the numbers change," he said, underscoring that the forecast depends heavily on stabilizing or increasing student counts and a per-pupil funding increase the district conservatively budgeted at $50 per pupil.

Pearson said the state placed the district in an enhanced deficit oversight category to work with the district on a plan rather than impose a more intrusive intervention. "Treasury said to us… you're going to be an EDEP district," he said, adding that treasury reviewed and "bought into" the plan presented to the board. He warned that failure to enact the plan could lead to fiscal stress measures under state law.

Board members asked how the commission could assist; Pearson urged community outreach and marketing to encourage enrollment and said the district plans neighborhood visits and a marketing committee to promote the schools. He also said the board will begin contract negotiations with teachers and hopes to finalize concessions by month end.

The presentation concluded with a request that the community support the district's financial turnaround; Pearson said once the deficit is eliminated the board can decide which electives and programs to restore. The commission did not take a formal vote on the district plan at the meeting.

Next steps: the district will continue negotiations with staff over concessions and proceed with the budget adjustments described; the school board will consider implementation details and any personnel actions required to meet the savings targets.