FINANCIAL SUGGESTIONS

EA 8840 Final Paper Evaluating and offering Fiscal

Recommendations for L’Anse Creuse Public Schools
~Meghan Ciacchella, ciacchella@oakland.edu
 FINANCIAL SUGGESTIONS | Meghan Ciacchella

ABSTRACT
The following paper attempts to critically examine the Fiscal expenditures from a hypothetical
viewpoint of an externally hired consultant for the L’Anse Creuse Public Schools (LCPS). After review
of all modules in the business and finance classes, review of audited financial documents in previous
assignments, along with the three mini-interview assignments from previous class sessions with the
Business Department supervisor, Director for Special Education, and the Supervisor for Technology, the
hypothetical external consultant firm will critically examine the financial areas in which they feel needs
to be addressed. Furthermore, the consultant firm conducting the review will provide recommendations
to address financial concerns for LCPS. Using part of the “four frame” approach from Bolman and Deal’s
(2017), along with Nathan Levenson’s District Managing Group for budget solutions for schools, and
LCPS’ strategic planning document (whose primary mission is clearly stated on your district webpage as,
“To create a challenging collaborative learning community which prepares all students for success in
global society”), the consultant firm will attempt to break down the financial discoveries in three
categories: A Structural Analysis, a Human Resource Analysis, and a Technological Integration Analysis
to secure Financial Success.

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INTRODUCTION
After careful review of audited local and state financial reports, documents, and projected fiscal
expenditures for the 2020-2021 academic school year provided to us, our consultant firm has completed
a detailed financial analysis of L’Anse Creuse Public Schools (LCPS) financial status report. It is the
wish of this consultant firm to present the findings of our combined Professional Judgement and Evidence-
Based study to your organization in the following manner: we will provide LCPS with a detailed financial
analysis as a result of analyzing audited reports, account any findings of likely and projected economic
issues LCPS may face in the Fall of 2020, and finally, propose fiscal recommendations as a result of our
financial findings.
This consultant firm will do so by categorizing its fiscal findings into three specific categories we
feel demands the most immediate attention of L’Anse Creuse Public Schools for the 2020-2021 school
year. The three financial categorizations were designed to resemble three (of the four lens) “framed
organizational design” method (as researched and presented by Bolman and Deal’s “Reframing
Organization” from 2017), integrate concepts as researched from managing director of “District Managing
Gropu’, Nathan Levenson’s (2012) brief called, “Strategies for Smarter Budgets,” and align any financial
findings with the district’s strategic plan, whose primary mission is clearly stated on your district webpage
as, “To create a challenging collaborative learning community which prepares all students for success in
global society” (LCPS 2020). The following financial analytical report is broken down as follows: A
Structural Analysis, a Human Resource Analysis, and a Technological Integration Analysis to secure
Financial Success.
RECOMMENDATION ONE: A STRUCTURAL ANALYSIS REPORT
Using the “structural frame” offered by Bolman and Deal (2017), it is the recommendation from
this consultant firm that L’Anse Creuse Public Schools should consider, “organizations increase efficiency
and enhance performance through specialization and appropriate division of labor” (p.48). Restructuring
of your work labor force, potentially eradicating unsuccessful achievement programs in place to increase
cost-efficiency, and formulating a building reallocation committee to potentially close a building to lease
for profit within the community, are the financial structural recommendations of this consultant firm.
It is described by a recent report generated in May, 2020 by the “Consensus Revenue Estimating
Conference” that an astounding “$2 billion revenue drop in the current and next year's state school
budgets,” are projected for Michigan’s schools to incur (Chambers and LeBlanc, 2020). Understanding
that LCPS is not considered a “Hold-Harmless” district in the era of Proposal A, the data reported from
leadership throughout the district amidst the current COVID-19 pandemic, revealed LCPS along with
many other local school districts in Macomb County, are struggling to generate revenue from non-

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homestead taxes. As the recent Michigan State study called “Michigan School Finance At the Crossroads:
A Quarter Century of State Control” (2019) confirmed, “the fundamental cause” for dwindling state aid
“is the state’s declining tax effort,” (p. 6).
LCPS will most likely face another devastating loss in state allocated per pupil funding for 2020-
2021. The School Finance Research Collaborative report released in 2018, recently recommended the
base cost to educate a student be $9,590 as opposed to the Successful School District assessment of the
standard $8,188 (p. 220). Judging by the district’s per pupil funding at $8,288 and the projected budget
foundation cuts by the state, LCPS will need to find additional sources of revenue (Price, Appendix p. 9).
The consequences of this financial restructuring could be detrimental to your school district. Our
consultant firm recommends the formation of a task-force committee, comprised of community
stakeholders, local businesses, county members, students, staff, and administrators to address ways to
possibly entice businesses to the Harrison Township and Macomb Township areas.
With LCPS’ operating general fund budget of $21,591,447 according to the Michigan School Data
Fund Balance Snapshot (2019), this district went from enrollment of 33% Economically Disadvantaged
(2011) to now being comprised of 41.94% Economically Disadvantaged students. With this decline in
enrollment and increase in Economically Disadvantaged student population and aligning with the
district’s mission statement, as Nathan Levenson (2012) research suggested, we too believe LCPS should
“prioritize achievement” by funding programs that work.
Furthermore, a program evaluation committee should be formed within the district to critically
examine and to evaluate current academic programs funded. As Levenson (2012) revealed, “knowing
what works requires information” (p.2). This program evaluation committee could determine which
programs are working best for the district and which ones should be eliminated or reduced in the future.
This would help to off-set possible state budget cuts and allow for LCPS to shift monetary allocations to
those programs that are the most cost-efficient while successfully eliminating those money-wasting
programs with unsatisfactory ratings from this formed committee. The committee could incorporate
already gathered data from previous financial audits per the business department and integrate those
findings with conclusions from current curriculum advisory boards as well as the data reports from the
district’s literacy and math consultants
Finally, a restructuring of fiscal expenditures is further recommended for L’Anse Creuse Public
Schools. Our consultant firm strongly counsels LCPS in devising and executing the use of a zoning-type
formula within your local schools, in order to emanate a hierarchy of tiered financial support ranked by
needs and categorized building-by-building. This “zoning” could potentially assist in the future
assessment of building budget demands and begin the better alignment of building expenditures based

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upon those schools requiring federal funds, additional grant support, at-risk funding, demonstrating
increased enrollment of Economically Disadvantaged students, increased percentage of English Language
Learners, and high percentage of Special Education students. This critical analysis and “zoning” local
buildings would better allow L’Anse Creuse a means to reallocate funds to those buildings in highest need
of financial support.
RECOMMENDATION TWO: A HUMAN RESOURCE ANALYSIS REPORT
Using the human resource frame for analysis, Bolman and Deal (2017), we suggest LCPS to better
align their fiscal expenditures with their specific student needs to secure better financial stability and
success as a formal organization (p. 133). After this firm’s careful analysis of student enrollment data,
projected state aid funding allocation, and review of the Michigan Department of Education (MDE) report
entitled, “Michigan Public Schools Ranked by Selected Financial Data” (2018), L’Anse Creuse Public
Schools (LCPS) is one of the top five largest districts located in Macomb County, Michigan but continues
to endure declining enrollment. In 2011, L’Anse Creuse Public Schools enrolled 12,692 students. This
number has decreased significantly to the 10,392 students according to the 2018-2019 data from the
Michigan School District Data dashboard. This consultant firm strongly recommends LCPS should
formulate a committee comprised of community stakeholders, board members, students, staff, and
administrators to closely examine and carefully consider the possibility of closing an additional school
building, with the potential for leasing it back to the community for profit.
Looking through L’Anse Creuse financial statements, our consultant firm understands that LCPS
is not afraid to sell buildings with low usage to generate revenue. L’Anse Creuse successfully closed one
of their buildings in 2018. The resulting closure of the adult education building sold for the price of
$215,000 (Tuttle, p. 1). This sale greatly enhanced the district’s generated revenue in 2018 (Tuttle, p.1).
It is our recommendation that LCPS consider formulating a building-reallocation committee to look at an
additional school building closure. Human resources from these buildings may then be redistributed,
through the maximum reemployment clause to those “zoned” at-risk building requiring additional human
resources and staff (see zoning procedures listed in “Structural Analysis Approach). The building
administrator could be used to co-administrate the building in the highest “zoned” risk and class sizes
could also potentially be reduced as well.
However, if LCPS were to close a building and lease it as opposed to selling the building, it could
potentially create what Johnson and Moser (2002) of the Mackinac Center propose as “a public-private
partnership” that would “allow communities to upgrade their public school facilities at substantially lower
costs,” (p. 1). This would also be directly aligned with two of LCPS’ seven strategic plan beliefs located
on your district’s transparent strategic plan. This declared, “collaborative partnerships with community

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members,” are necessary as is the preservation of “the district tradition and history,” (See Comprehensive
Financial Audit Report).
This restructuring of human resources as a result of a potential school closure would demonstrate
better “fiscal responsibility” to the community stakeholders as stated in LCPS’ MVVGs. Furthermore,
leasing the building to the community (at a price set by the district) would allow for additional generated
revenue for the fiscal school year, consolidation of curricular resources as a cost saving measure, be
deemed as energy saving and cost-efficient, while managing to keep the possibility of using this building
if enrollment spikes in the future.
Our consultant firm examined the Michigan School Data analysis and discovered less than 5% of
LCPS’ population are English Language Learners and 12.44% are classified as Special Education. After
our recent conversation with the Director for Special Education, it is the proposed recommendation of this
consultant firm to recommend the redistribution of staff and/or restructuring of your employees’
roles/titles throughout the district. As Michael Petrilli (2012) also suggested, “asking teachers to take
greater responsibility for greater pay” while restructuring your labor face, may increase productivity and
prove more cost-effective for your district specifically (p. 1). Moreover, as Levenson (2012) suggested
for creating a “smarter budget,” schools need to better “manage special education funding for better
outcomes and greater cost-effectiveness” (p.6). As we understand the budget allocations are tight and
projected to decline for the upcoming school year, our committee recommends adding more roles to
employees on a voluntary basis while supplementing pay either through the coaching salary or an “off-
scale percentage” bonus at the end of the school year. This “trade-down” as opposed to budget cuts,
would effectively “provide equivalent services at less expense” to the district (Levenson, p. 4).
L’Anse Creuse could redistribute human resources to create positions within buildings without
adjusting contractually negotiated verbiage. This “Strategy for Smarter Budgets” as proposed by
Levenson (2012), would “make staffing decisions based on student needs, not adult preferences,” (p.2).
For example, math and literacy coaches could be redeployed within buildings in highest “zoned” needs
and carry out additional duties to address the growing special education needs, assist with Response to
Intervention groups, perform administrative duties, administer professional development, manage
assessment needs, and help create supplemental academic curriculum materials. The redesigning roles
should be based on the district’s strategic plans and carefully examine programs and courses that are better
aligned with the district’s strategic plan (Ribnik and Levenson, 2019).
A similar redistribution of human resources could also occur at the administrative end as well. As
Levenson (2012) reported, “roughly 80% of any budget is spent on people” (p. 2). According to the LCPS
transparency document reporting on your website, your district spent roughly “$99,445,292” or

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approximately 89.74% on personnel. Being creative with roles within buildings would allow districts to
meet the 21 Century demands and face the current health crisis. Additionally, these redistributed titles
could come in the form of: e-coaches to assist with the Virtual Learning Plan in place per Governor
Whitmer, child development specialists to attend 504 and IEP meetings in the future, or adding additional
behavioral specialists titles to match teachers’ certifications. Reassigning roles with supplemental pay is
key to financial stability in L’Anse Creuse Public Schools.
RECOMMENDATION THREE: A TECHNOLOGICAL INTEGRATION ANALYSIS REPORT
A careful analysis of L’Anse Creuse “Budget Transparency Report: Operating Expenditures” as
listed on your district’s “Transparency Reporting” section, revealed the total operating expenditures for
L’Anse Creuse to be at $108,902,761 for the fiscal year of 2018-2019. With Governor Whitmer’s current
“Executive Order 2020-35” in place that has closed Michigan’s schools for the duration of the 2019-2020
school year and the uncertainty of whether Michigan’s publics schools will return to “brick and mortar”
status in the fall of 2020, now is the time for L’Anse Creuse to optimize their savings from not having to
staff or operate buildings during this COVID-19 closure and invest properly in technological integration
to prepare for a possible need for a Virtual Learning Plan in the fall.
This consultant firm feels strongly that the district could reallocate budget expenditures that they
saved during the closure and instead invest in teacher training through their already purchased Google™-
suite (G-Suite™) integration. As a result of this consultant firm’s previous auxiliary technology director’s
interview, it is the assessment of this consultant firm’s professional judgement that fiscal expenditures
have been dispersed a bit too widely throughout the district. The district has invested in both Microsoft
Office 365 for all its employees as well as the purchase of a G-suite™ for all teacher and student at the
secondary level. However, with the Governor’s Executive orders currently in place, the G-suite™ was not
mandated and instead, the district had a wide variety of virtual platforms in use to cope with the emergency
health crisis. Although this enabled teaching staff more of an autonomous control in the present emergency
situation, going forward, it is the recommendation of this consultant firm to have LCPS utilize one virtual
platform of Google Classroom™ to keep with their strategic plan of being “fiscally responsible.”
Additionally, a recent researched study conducted by Hampton, Fernandez, Robertson, and Bauer
(2020) effectively linked “better [internet] connectivity” as “associated with clear advantages for school
performance (p.42). Given the district’s over 41% percent reported as being Economically Disadvantaged,
students in the L’Anse Creuse school district and combined with the statistic referenced in this Michigan
State University study that declared 41% of suburbs lack internet access, “64% of those students who do
not have internet access at home sometimes or often leave homework unfinished,” (Hampton, Fernandez,
Robertson, & Bauer, p. 30). This resulting absence of homework puts LCPS at a higher risk of poorer

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achievement on standardized tests, lack of participation in learning, and increasing the “deficit in digital
skills” that potentially harms the likelihood of advancing into college degrees (Hampton, Fernandez,
Robertson, & Bauer, p.5,42). This would once again pose a threat to complying with L’Anse Creuse
Public Schools’ goals set in their strategic plan. If these technological needs are not addressed, future
expenditures may need to be assessed and financial budgets will suffer as a consequence; fiscal
expenditures may need to be invested in additional curriculum resources, human resources, and program
investment in order to compensate for this learning deficit as a result. This would be detrimental to the
district’s already projected depreciation of per pupil funding from the state.
This consultant firm further recommends the need for L’Anse Creuse Public Schools to establish
an auxiliary committee with professional recommendations surveyed from LCPS staff and members of
the technology team to prepare for potential Virtual Learning Plan procedures once again in the 2020-
2021 school year. L’Anse Creuse could survey their district employees utilizing their Google™ platforms
from community stakeholders to elicit input regarding the recent COVID-19 closure. Careful analysis of
discovering if students had “broadband connectivity” issues, were using cell phone data plans as their
main source, or were simply in need of technological devices would be most beneficial to avoid potential
lawsuits from students with special educational needs. In order to be in compliance with federal and state
regulations, it is recommended that LCPS address those concerns and prepare for the upcoming potential
closure in the fall of 2020. By being proactive, training teachers, using fiscal resources saved from
building and operating costs as a result of the current 2020 closure, L’Anse Creuse has the potential to be
fiscally responsive while integrating technology in a cost-efficient manner, meeting the needs of all
students, and adhering to this district’s mission statement: “To create a challenging collaborative learning
community which prepares all students for success in global society”.
CONCLUSION
This consultant firm hired to critically examine the financial expenditures and revenues of L’Anse
Creuse Public Schools was easy to navigate as demonstrated by LCPS’s clear, consistent, and transparent
nature of all documents available to the public. L’Anse Creuse continues to operate just under a 5% fund
equity availability. With the proposed reductions to the School Aid Fund projected for the 2020-2021
school year, it is the recommendation of this consultant firm to adhere to the above findings. The districts’
demographics are quickly changing and posing continued threats to their fiscal responsibilities. By
continuing to examine the budget process thoroughly through continued audits, formulating various
committees comprised of various stakeholders and district employees, along with better aligning their
fiscal budget to their strategic plan, LCPS will continue to thrive financially and “create a challenging
collaborative learning community which prepares all students for success in global society”.

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REFERENCES

Arsen, D., Delpier, T., & Nagel, J. (2019). Michigan School Finance At the Crossroads: A Quarter Century of State
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Blankstein, A. M. (2013). Failure is not an option: six principles that guide student achievement in high-performing
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Bolman, L., & Deal, T. (2013). Reframing organizations: Artistry, choice, and leadership.
Hoboken, NJ: John Wiley and Sons, Inc.

Chambers, J. (2020, April 17). Hundreds of thousands of Michigan students lack internet or computer.
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Chambers, J., & LeBlanc, B. (2020, May 15). Michigan school leaders seek help to avert $1.2B hit to existing
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Johnson, K. A., & Moser, E. (2002). Fiscally Responsible Leasing of School Buildings and Facilities. In The Six
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Levenson, N. (2012). Strategies for Smarter Budgets and Smarter Schools. Policy Brief. Retrieved from Thomas B
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Michigan Department of Education (Ed.). (2018). Michigan Public Schools Ranked by Selected By Financial
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Palaich, Picus, Odden, and Augenblick. (2018). Costing Out the Resources Needed to Meet Michigan's Standards and
Requirements. (APA Consultants Ed.). Retrieved from
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Petrilli, M. J. (2012). How School Districts Can Stretch the School Dollar. Policy Brief. Retrieved from Distributed
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Price, W. J. (2018). Taking the mystery out of Michigan school finance: a handbook for understanding state funding
policy for Michigan public school districts (9th ed.). Ypsilanti, MI: ICPEL Publications.

Ribnick, S., & Levenson, N. (2019). Strategic Budgeting: Align Your Budget to Your Strategic Plan to Make the
Most of Every Cent for Students. District Management Journal, 26(Fall), 1–14. Retrieved from
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Tuttle, N. (2018, January 28). L’Anse Creuse School Board sells property, OK’s schools of choice Old adult ed
building to become senior living space. Voicenews.com. Retrieved from
https://www.voicenews.com/life/l-anse-creuse-school-board-sells-property-ok-s-schools/article_8465a10d-4be8-55de-87ec-dd287c68cf68.html

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Williams, A. C., & Kersten, T. A. (n.d.). Strategies to Maintain School District Financial Solvency: Illinois School
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Audit Report

https://www.lc-ps.org/downloads/business/lanse_creuse_public_schools_audit_for_the_fiscal_year_ending_june_2019_11.pdf

Budget Transparency Personnel https://www.lc-ps.org/downloads/business/budgettranspersonnelrpt.pdf

Budget Transparency Operations https://www.lc-ps.org/downloads/business/budgettransoperatingrpt_2.pdf

District Managing Group: https://www.dmgroupk12.com/people/nathan-levenson

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