Tightening the Financial Belt

The current financial crisis will have an effect on private Christian education.  Difficult economic times always do.  Many families use revenue from investment income to finance their tuition and fees.  As the stock market declines, more money is required for those who want to keep up their retirement.  And inevitably, as we are seeing develop across the country, job loss is increasing.  The sacrifices many families make to keep their children in Christian education in some cases become larger than the family’s ability to make them.  So how can schools, and families, weather the storm.

First, prayer is not the least you can do.  It works.  God moves when his people pray.  I have personally witnessed finances come to families in the most unexpected ways.  I’ve seen situations where continued enrolment in a private school seemed an impossibility for a family, yet, like the widow’s jar of oil, money kept coming for their kids, sometimes from places they didn’t even know. 

Second, schools should always be prepared in advance to face financial situations like this, and if you do, you should have plenty of operating capital set aside.  We always recommend that a school keep at least one year’s worth of operating capital in the bank, in the event that a catastrophe of some kind comes along so they can at least maintain their payroll.  We’ve spoken with several school administrators in recent years who were very grateful that their school board policy required keeping cash reserves on hand.  In Louisiana during Katrina, and recently in both Louisiana and Texas during Gustav and Ike, we have heard stories of schools that were out for as long as 10 days, but were able to continue making their payroll.  We’ve spoken with a couple of day care centers at churches that were able to do the same, even though their staff was out of work for a week or more in some cases.  You want to keep your families and students in your school, if you can, so use those reserve funds to help with emergency situations as they arise. 

It may be time to look at expenses and see if there is some way you can reduce your costs.  Work together.  Some schools ask families to share in the expense by bringing basic classroom supplies, such as tissue, paper goods, and other supplies.  We are aware of many schools that ask families to take turns at custodial duties.  One school in Arizona has designated one football game as “parent away game night” and asks parents to transport students involved in the game, rather than using school transportation.  Do one or two of those in each sports season and the savings can definitely add up. 

Investigate the availability of tuition insurance.  Some policies provide for emergency payments when a parent loses their job or there is some sort of crisis.  Even if you have a few families who have to withdraw, you are able to maintain your budget. 

For families who are unable to continue to keep their students in a Christian school, consider a temporary shift to home schooling, and get into a good cooperative.  Your situation may be temporary, but you don’t want to lose the progress you have made while your children were in Christian school.  It may also be that you can get together with groups of parents in the same situation, and work together to teach your children in the home, on a voluntary basis.  Of course, working parents can’t do that, but it is a possibility, even if you have classes in the evenings. 

Always know that God is with you, and while he may not calm the storm, he will help you have the strength to weather it.