Bailey Childcare Program Update
- changemediagroup
- Jan 21, 2015
- 3 min read
Last night, the East Lansing City Council voted 3-2 to defeat a motion that would have required City staff to continue to operate the Bailey Childcare Program until June 30, 2016. This was, without a doubt, the most difficult vote that I have taken during my seven years on the Council. Difficult because I recognize the importance of both the Childcare Program and the Bailey Community Center and the concern, and even fear, that any uncertainty about the long-term future of this facility can cause. I also recognize the considerable amount of time and energy that the Bailey parents have put into their analysis of these issues and recommendations. There are times when the Council is called upon to do what’s right for the community, even if it’s not easy or popular. Last night was one of those times.
After five months of discussion and investigation, I voted against the proposed motion because it was fiscally irresponsible. I can’t imagine any scenario where I would vote for a proposal where three basic questions could not be answered:
1) How much will it cost? 2) Where will the funds come from? 3) What will the impact be on other budget priorities?
None of those questions were answered with any specificity or certainty over the course of the last five months or last night. As a result, the proposed motion exposed the city to an unacceptable financial risk and would have diverted scarce resources from other pressing priorities.
I would be more than happy to speak with any resident who has questions or concerns about this issue, but allow me to share a few of the considerations that weighed most heavily on my mind.
Between FY14 and FY15, the city will have spent over $275,000 addressing deficits created by the Bailey Childcare Program. That’s roughly $7,000 for each of the 40 children currently served by the program. Thirteen of those children are East Lansing residents.
The Council was urged to look at the Bailey Childcare Program in isolation, without considering how the program impacted the city’s Parks and Recreation Fund or the General Fund. Unfortunately, we don’t have that luxury.
Approving the motion would have required the city to expend between $6,000 and $60,000 in FY16 to subsidize the Childcare program’s operating deficit. It also would have required us to spend between $25,000 and $195,000 on capital improvements without a plan. That range represents scenarios that I would characterize as optimistic to realistic. They do not represent the worst case. 100% of these expenses would need to come from fund balance. The maker of the motion originally proposed that we spend $24,000 that was previously budgeted for the Bailey tot lot, but those funds have already been spent to cover previous Childcare Program deficits outlined above. The maker also proposed using the Capital Improvement Fund, but this fund does not carry a balance. We would first need to transfer funds into the Capital Improvement Fund from the general fund. The only remaining option is to spend down fund balance.
Passage of the motion would have depleted the city’s Parks & Recreation Fund in FY16, including the entire equipment replacement reserve for the Aquatic Center. In addition, it would have required a further unspecified transfer from the general fund.
My greatest frustration over the last five months has been that most of the discussion obscured the fact that any decision around the Childcare Program would have an impact on other priorities. It’s simply untrue to suggest that we have sufficient funds to do it all at any cost. Every dollar spent on X is a dollar we can’t spend on Y. Residents can, and do, disagree over which budget items hold a higher priority, but we must all acknowledge that choices need to be made.
In short, the motion we debated last night called for the city to write a blank check. I couldn’t do that in good conscience. The financial risk was too great and the impact on other budget priorities too uncertain.
The Council also unanimously approved resolution directing staff to begin a collaborative process to plan for the future of the Bailey Community Center. The resolution specified that the process must commence as soon as possible and no later than June 1, 2015, and shall be concluded no later than six months from commencement. The future of the Bailey Community Center is a critical issue for our community. This process must move forward as expeditiously as possible and I hope that residents will be engaged.
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