Running head: BUDGET RECOMMENDATIONS 1

SBM Finance Professionals 

007 Argo Ave.
North Shore Dr.
Petoskey, MI 49770

April 10th, 2018

Clarence Garner, Superintendent

Grand Blanc Community Schools
11920 S. Saginaw Street
Grand Blanc, MI 48439

Dear Mr. Garner,

SBM (School Business Management) Finance Professionals are pleased to offer our
seasoned and unique perspective to school financial strategic planning. We consult with large
and small districts throughout the state of Michigan and the Midwest Region. We can’t wait for
our team of retired superintendents and school business managers to meet your admin group and
discuss our proposal face-to-face. Enclosed you will find our preliminary analysis of Grand
Blanc Community School’s financial standing, our predicted forecast for future state funding,
your enrollment projections, and guided advice for steps the district can take to capitalize on the
momentum your team has already built.

Financial Standing
Our group has analyzed the financial history of Grand Blanc and made comparisons
between other demographic peer districts throughout the state using our Eidex financial
comparison software (this tool will also be made available to you within our services). We
commend the GBCS Board of Education and administrative team for being conservative
stewards of your financial resource through trying times in our field. Your group was able to
right size your district without compromising your core mission. That is why your district is
currently sitting comfortably at a 14% fund equity balance ($10.4M).

Here are the major points of consideration we feel make your district ripe for growth
coming off of a contraction:
BUDGET RECOMMENDATIONS 2

● While you have estimated that you would be down 100 students last year, and this
upcoming year, your enrollment has stabilized and even grown by a few students.
● Our macroeconomic assessments regarding the school finance climate point to an even
greater per pupil FTE increase than expected.
● GBCS has retired much of the bond debt used to build two new middle schools and an
elementary school over ten years ago, and there is a great chance to pursue a “No-Mill
Increase” bond for capital improvements

A Time for Growth

GBCS has done the “family hold back” for the last six years with staff seeing no pay
increases or steps, and even two years of layoffs. Additionally, many services have been
privatized while also being halved, such as every other day cleaning. You have quite an aging
infrastructure as well. While we pride your success in passing a technology bond, capital
projects like paving, roofing, and HVAC systems are in dire need of address. There happens to
be quite a bit of growth happening with industry on the south end of your community centered
around a the I-475 loop connection and the proposed “Technology Village”. McLaren Health
has already relocated their headquarters to a brand new facility there, and this industry growth
will bring jobs and new families. Maintaining your “Tradition of Excellence” in a responsible
manner will help to ensure that these families feel comfortable working AND living in your
community. Our consultants have created a menu of options and plans to methodically tie your
growth to a strategic vision.

Recommendations
● Bond Proposals and Passage
○ Operating Millage, Sinking Fund ($1.5M x 10 years), No-Mill Increase​ ($37M)
○ Capital Improvement Projects
■ HVAC Upgrades to increase efficiency and move to Balanced Calendar
■ Improve secure entryways and security technology
■ Maintain Technology Infrastructure
○ Independently marketed through nonprofit ​“We are for GB kids”​ - “The Future is
BUDGET RECOMMENDATIONS 3

Now”
● Curriculum and Instruction
○ Create K12 Virtual Academy to increase student opportunity, retain students, and
increase 21f enrollees. See ​Oxford Virtual Academy
○ Move to Balanced Calendar. See ​Davison Community Schools
● Close majority of Perry Center (Aging Building)
○ Move Perry Innovation Center’s 2nd-7th Grades to home buildings
○ Distribute Children’s Garden and Latchkey Programs to underutilized buildings
(Anderson and Cook Elementaries)
○ Invest in Cook and Anderson Facilities Upgrades
○ Maintain Technology Office (Gym Building), an demolish remainder of building
(pay homage to historical importance through sculpture park)
● Self Insured Health Care - ​Flushing Schools
○ Take MESSA out of the picture and self insure to maintain steps, lanes, and even
increase staff wages to retain and attract talent
○ Still Blue Cross/Blue Shield
● Transportation Reform
○ Conduct Ride Use Audit of High School. Many runs are partially used.
Consolidate and delete runs.
○ Partner with MTA to open shared ​Bus Garage
○ Rearrange transportation runs to create later high school start time.
● Energy Management
○ Strategically close portions of Perry Center (Aging Building)
○ Partner with Consumer’s Energy to create ​Solar Garden Project​, Similar to
Hartland Schools
● Athletics
○ Increase partnership with the Grand Blanc Athletics Foundation to near self fund
athletic facility enhancements
○ Restore 20% across the board Schedule B cuts made three years ago.

Conclusion
Thank you to you and your team for closely considering our assessment and
recommendations. These rough plans are just scratching the surface for responsible spending,
and we would love the chance to speak with your group to explain more. If you choose to pursue
a relationship and partner with our firm, we will work closely with your strategic planning team,
bond marketing group, and administrative team in order to ensure these recommendations will
come to fruition and keep your district on a continued path of excellence.
BUDGET RECOMMENDATIONS 4

References
Grand Blanc Community Schools Financial Transparency Report. (2017). Retrieved from

http://grandblanc.schoolblocks.com/transparency-reporting-289fd34b

Lewis and Knopf, Certified Public Accountants. (June 2017). Grand Blanc Community Schools.

Report on Financial Statements. Flint: MI. Retrieved from​:

https://drive.google.com/file/d/18Pravkz1dB1vnLMOHm1oYPbUEN7Lcc2x/view

Kearney, C.P. and Addonizio, M.F. (2002). A Primer on Michigan School Finance, 4th Edition

Price, W. J. (2017). Michigan School Finance: A Handbook for Understanding State

Funding Policy for Michigan Public School Districts (9th edition). NCPEA Press.