Birch Grove Community School Director Caroline Wood was busy the evening of Tuesday, March 8, attending Lutsen and Schroeder’s annual town meetings to answer questions about Birch Grove School’s funding requests.
Birch Grove Community School (BGCS) Director Caroline Wood was present at the Lutsen annual meeting on Tuesday, March 8, 2016 to represent the school and answer questions about their funding request. When the issue was taken up, there were plenty of questions for her to field. One concern regarded what the money would be put toward. When asked whether any would be supporting the Saplings Preschool program, which is essentially a daycare, Wood responded that the fund for the daycare has been operating at a loss and, at the end of the year it was possible that some of the requested $20,000 would go to balance the fund. “Daycare is part of the parent’s responsibility,” Val Groth contended. “And it’s not easy and daycare is very expensive, but parents have to pay for it. And I don’t know that the township should be paying for it.” In response, both Judy Motschenbacher, a member of the Birch Grove school board, and Jim Vick from Lutsen Mountains suggested that the daycare is an important asset for the working community and helps keep young, working families in the area. “A community school is essential for us to keep working families in here,” Vick said. “If they die and we can’t keep young working families here, we’re in a world of hurt.” Another point of contention for the school’s funding request was the fact that though the number of students from Lutsen has doubled from 4 to 8, and the school receives roughly $7,000 for each student, the request for money isn’t decreasing. “Last year you had 4 students, and this year you have 8,” Larry McNeally said. “I was thinking that at some point the number of students would be high enough that the donation request would drop off.”
In response, Wood said that the school has a five-year plan that is meant to get them to a healthy fund and operating balance. Currently, they have no fund balance, but are hoping to get to 25 percent at the end of a five-year time-frame. “The budget that you have in front of you closes out at $15,000 to the good,” Wood explained. “ We need to get to $112,000 to the good to be in a healthy fund balance.” Additional questions were also asked regarding what seemed an inordinate amount of money being put toward special education. “You’ve got two- thirds of what you’re spending on the regular general ed in special ed,” McNeally observed. “Seems like a disproportionate amount of money is being spent on special ed as opposed to general ed.” Motschenbacher stepped in to explain that special education is primarily paid for by state and federal funding, with the Birch Grove School district only covering 10 percent. Other than that 10 percent, the special education funding does not impact the general funding. “We’re providing very valuable services to the community of all ages,” Wood concluded. “That model is not sustainable without getting equal support and teamwork from the three townships.” Vick put forward a motion to supply the requested funding. The motion passed with 21 voting to recommend that $20,000 be donated to the school, and 9 opposed.
Tofte okays funding for 2017
At the Tofte Annual Meeting at the Birch Grove Center at the same time, there were very few questions and little discussion of whether or not to fund BGCS. The funding request for $20,000 for the school was included in the township’s proposed 2017 budget under “Contract Services.” The requests included $11,000 for the Birch Grove Foundation, which operates the Birch Grove Community Center, $1,000 for the Lutsen Junior Alpine team, $3,000 for West End Community Education, $10,000 for the Tofte Historical Society/ Commercial Fishing Museum and another $2,500 for the Birch Grove Foundation for W. E. Connect programs. Supervisor Paul James said all of the entities filled out applications as the township requested. The only question raised was about the historical society contribution, which, a citizen noted was a “ three- fold increase.” Supervisor James replied that the museum needs a new roof. With that a motion was made to approve all of the donations, including the one for the school. The motion passed with no nay votes heard in the room filled with about 30 people.
Schroeder
With other township meetings to attend, Director Caroline Wood’s remarks to the Schroeder Township folks were brief. “ Based on the minutes you approved of last year, we want to thank you for your motion to donate $20,000 each year for the next five years to Birch Grove School. This year we have 13 employees, 28 kids in school and 14 kids in preschool. We really appreciate your support of the school.” While there were no questions for Wood, who had to leave, later in the meeting a lively discussion was held regarding the legality of the township giving money to the school. Currently the State Auditor is trying to clarify for the three West End townships whether they can or cannot legally contribute levy funds to the school and other non- profits who request money from them. Jeff Reed, supervisor, Special Investigations, Office the of State Auditor, said in a letter to Schroeder Supervisor Bruce Martinson, “As we discussed on the phone, the town cannot extend public funds for which there is no statutory authority even if the majority of residents support the expenditure.” In his memo to Martinson, Reed was referring to a survey the township wanted to send out to its residents, and Reed cautioned against sending out that survey. He also stated, “ the Office of the State Auditor cannot provide legal advice but because we’re still working on letters to the townships… .” Martinson told the citizens that when he told Reed that Schroeder owned the Cross River Heritage Center building and that Tofte owned the Birch Grove building, Reed replied that he wasn’t told that by the people who were sending him letters of inquiry into the townships g ranting money to these institutions, and because of the new information he would have to look further into the practice before he could give the township his advice. Citizens voted 29 for, 11 against, to give BGCS $20,000 for 2017, contingent on approval of the State Auditor.
Rhonda Silence and Brian Larsen also contributed to this report.
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