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"As of two weeks ago, my best guess was that we would end the fiscal year with a $442,000 fund balance," district Supt. Matt Miller said. "But we are also seeing some scenarios come out with Lansing with different enrollment figures," he said. Using one scenario which maintains the status quo for the district, they could have a fund balance of $172,000 and another scenario predicts an $80 increase in the foundation funds,but he cautioned these numbers are unrealistic.

"The House put out a bill last week which offered a $100 increase in the foundation payment and $100 equity payments and if that takes place it changes the picture. The only problem with this is that there is no new revenue stream. The only problem is that there is not a revenue stream to provide the money to finance it," he said.

During an update today, Miller said state officials indicated that they are not close to a settlement on the issue.

"We could not have anything. It could be one to three months before we know what we are going to get in the way of state aid," he said.

Trustee Bill Avery said he also has been following the school aid discussions closely and said the problem lies with the Democratic-controlled House of Representatives and the fact they are not going to budge from their position and the Republicans have gone on record saying they will not approve a revenue increase, other than the nine cent gas tax over three years," he said.

On the bright side, Miller said the board still had a little over two months to produce a balanced budget, adding these discussions were just beginning.

"I would like to recommend that we have a $300,000 minimum fund balamce," he said. Ò"I would like ti to be higher and a higher number would be nice." He said if a higher number were to come about, the district might be faced with borrowing money and then have to pay back the borrowed funds, with interest.

"Another thing they are bantering about at the state level is delaying the payments on the state aid," Avery said. " It would be a savings for the state as they would get to keep the money longer, but they are not the ones that are bouncing the checks we are. I guess they can do that as long as it is not their problem."

He said with the suggested fund balance of $442,000 for a $9.5 million budget was cutting it quite close.

"We have to do something," he said. "We canÕt raise revenues and we have to come up with something. I would suggest after we review the numbers that we come up with a fund balance of $350,000."

Avery said if the state decided to delay payments, the district would not have to borrow any additional money than necessary in order to make payroll. "We have to make our payroll until the revenue starts showing up," he said.

"We also all need to put pressure on the state," Miller said. "The economic projections that they came out with in January are not coming to fruition. I think they believe there is some middle ground on the revenue."

Avery said the only thing he has liked thus far which has come out of Lansing was the proposed two percent service tax, but he understood that was taken off the table.

"I think that $350,000 would be a prudent figure," board treasurer Frank Moser said. "I think it is a nice round number if you are looking for a number."

"It's not what we can live with,Ó"Miller said. Ò"It's what we have to live with."

Miller also sought a meeting between board President Gerald Cook, Moser and one trustee. The meeting was set for April 17 at 4:30 p.m. in the high school commons.

ÒThere is not a lot to be heard coming out of Lansing right now.Ó Miller said.

ÒIt is almost eerie quiet,Ó Avery said.

ÒI will try to keep you informed as best I can,Ó Miller said. ÒRight now everything coming out of Lansing, till it is approved is a proposal and right now they are nowhere near agreement on the school budget.Ó Miller said there is discussion about a statewide common calendar and there also was a new bill reported out of committee which could influence transportation costs, but the language would not assist Mancelona.

ÒKalkaska Public Schools could stand to receive about $369,000 based on this bill and they do not even offer any form of transportation,Ó Miller said. ÒThe incentives are very good for them.Ó