Thoughts on the cost of Lisa's 7,000,000 loan

Here is an email I and the other board members received.

Subject: Issue with Short Term Anticipation Note authorization for this evening

As a LPS taxpayer, I have some concerns concerning the upcoming discussion /approval for issuing short term anticipation notes for the district:

- I feel the recent Observer article indicating that some of all of the borrowing costs will be recovered through investment income. It should be assumed that only a portion of the $7 million borrowed will be available for investment purposes during the borrowing period (if that is not true,there would be no need to borrow in the first place). The Board should ask fora fair estimate of the net borrowing costs before approving this transaction.

- A fair estimate can be prepared by analyzing current borrowing and investment costs utilizing the weekly and monthly cash flow estimates the district is required to submit no later than Friday of this week(according to the MMBA website). However, this document is missing from the agenda packet distributed for this item. Given the critical nature of the decision and the short notice of getting the needed approval, I would like the Board to ask why that document is not included, at least in its preliminary form.

- I would have prepared an estimate to include with this communication, but I received no response from the Finance Director to my request for an explanation of the statement attributed to her in the Observer.

- If we can assume net borrowing costs will be 2% ($140,000), I would ask that the Board insist on making other cuts to absorb this amount. The last Budget estimate I could find on the LPS website estimates that other cost increases for 2008-2009 will be $960,000. That estimate does not appear to include the costs of this borrowing.

Thank You,
-- John C. Whaley, CFA, AIF
Actium LLC

Letters on Layoffs

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Staight talk from a Livonia parent.

Steve,

As a concerned parent of two boys ages 2 and 4, I have recently been watching the School Board meetings to familiarize myself with the financial situations of the school district. As any parent of a 4-year old I am pleased to be living in Livonia believing that my son will be attending an excellent school in 1-more year.

As with any business there are tough financial issues to work through in this economy. You seem to be one of the few on the school board who actually is looking at the big picture. I do see many excellent concerns raised by you in the meetings. I think the rest of the school board should take a step back and listen to some of your ideas.

I do not understand how Livonia can sign a 2-year contract with the SEALS,while teachers are cut. Shouldn't the students education be the 1st priority? Couldn't all janitorial and maintenance positions be outsourced. This could also eliminate some support administrative positions. As a parent I do want the classrooms cleaned, but I am more concerned that my son will be in a class of more than 30 students. It doesn't matter to me who cleans the room, a LPS employee or an outsourced employee.

I will be basing my children's enrollment in public vs. private schools on how the budget cuts are handled. There are many other parents that support my beliefs.

Keep raising the good ideas. Glad to see you question the "Consultant Fees".

____________
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Additional Everyday Math Comments

Mr. King:

We greatly appreciate your comments regarding the Everyday Math curriculum for 5th and 6th graders. As parents of a 4th grader, we have endured a very frustrating school year as our son has tried to learn this new program, along with his teachers, who have done a fabulous job. We were looking forward to next year and a return of "normal" math. Of course, we realize that we are among many who do not like change but my husband and I are both college grads (he, in elem. ed.) and have felt very inadequate as we have helped our son with homework on a nightly basis. We are very discouraged to think that we will have some of the same struggles again next year. What we really liked about what you had to say is that it may have been better to introduce the program to the younger grades first and then add a grade each year. In all fairness, we do think that Everyday Math is a good program and we have both a Kindergartner and 2nd grader (who piloted it his first grade year) that have excelled with this material. We do see the wisdom of exposing our kids to algebra, geometry, etc.. at a young age and our younger kids have caught on quickly. Our regret is that our 4th grader had all of this thrown at him after already "mastering" many of these lessons in a different way. We are worried that a big chunk of his lessons have not been completed since he was switched abruptly to a new program. Our fear is that next year our son will once again be instructed by teachers who are inexperienced at instructing in this way. We just wanted you to know that we support your comments and wish the outcome would have been different. Thanks for your time and continue the good work of providing for our district!