HANCOCK — Michigan school officials have been warned to brace for historic funding cuts for the 2020-21 school year.

During a presentation to the State Board of Education Tuesday, Kyle Guerrant said that the state’s budget has been devastated by the COVID-19 outbreak, creating a revenue shortfall of between $1 billion and $3 billion, with a projected shortfall of between $1 billion and $4 billion for 2021. Guerrant is the Michigan Department of Education’s deputy superintendent.

“We are being told to expect budget cuts ranging from $345 per student to up to $1,000 per student,” Hancock Public Schools Superintendent Steve Patchin said, “possibly more or less depending on future federal support. For our district these per pupil cuts at current student enrollment levels would be between $241,500 – $700,000 annually. Currently, Hancock Public Schools has roughly $570,000 in our rainy day fund.”

Patchin said the school officials participated in several conference calls with state leaders last week, some of which have focused on possible operating models they can anticipate as schools re-open in the fall.

“Other video conferences have focused on state budget operating shortfalls being expected,” he said. “Projections from Lansing are that the state will face a budget deficit of up to $3 billion for the fiscal year we are in now, ending September 30, and a projected budget deficit of up to $4 billion in the next fiscal year.”

Senator Wayne Schmidt R-Traverse City, chairman of the K-12 and Michigan Department of Education Appropriations and Transportation subcommittees, said potential cuts in state funding for K-12 schools could reach 25% due to Coronavirus impact on the state’s economy. He said worst case scenario schools could lose about $2,000 of the approximately $8,000 per student funding they get per year.

Approximately 40% of the $14 billion in state revenues for the school aid fund is derived from the collection of sales tax.

Patchin said Hancock Schools will receive some relief from the federal CARES Act.

The CARES Act, or Coronavirus Aid, Relief, and Economic Security Act was signed into law by President Donald Trump on March 27, 2020. The act provides nearly $2 trillion for relief to several broad groups that have been impacted by the pandemic, including K-12 education. The Elementary and Secondary School Emergency Fund portion of the CARES Act provides more than $13.2 billion to state education agencies across the country. Of that amount, Michigan received $389,796,984, according to U.S. Secretary of Education Betsy DeVos’ office.

“As part of the CARES Act, the first stimulus package passed by the Federal Government,” Superintendent Patchin said, “We have been told that Hancock Public Schools share will be roughly $103,868. The funds do come with stipulations on what we can use if for, all of which is COVID-19 related, but cannot be basic operating costs.

“The state has put in a request to the federal government asking that we are able to use these for operations costs, but currently there is little optimism this request will be granted.”