Detroit Public Schools Community District adopts 2025 budget amid federal funding risks
Summary
The Detroit Public Schools Community District board approved the district's proposed fiscal-year budget, backing revenue assumptions tied to the governor's K-12 proposal while flagging possible federal cuts to Title II/III and Medicaid reimbursements.
The Detroit Public Schools Community District board approved the district's annual budget after a presentation summarizing revenue assumptions, categorical funding and one-time fund balances.
The superintendent's academic presenter, Dr. Vidi, told members the proposed budget is based on the governor's K-12 proposal and projects roughly a 4% per-pupil increase, about $392 per student and approximately $19 million in additional revenue; it also includes $38 million for a second year of literacy lawsuit funding.
The budget matters because it funds staff, school programs and one-time facilities work and because district officials warned federal changes could force midyear adjustments. "The only major concern that we have at the federal level may be that next year's budget at the federal level will not fund Title II and Title III," Dr. Vidi said, adding that lost Title II/III funding (about $10 million combined, including roughly $9 million in Medicaid reimbursement) would be absorbed temporarily from district reserves and by trimming discretionary items such as professional development and events.
District staff described how the board uses two routine budget amendments each year to reconcile state and enrollment counts: one after the fall count and a second after the spring count. The presenter told the committee that federal Title I and Title IV funding for next year are effectively fixed by earlier congressional action and should not change for the coming year, but Title II, Title III and Medicaid reimbursement remain at risk.
Board members and staff discussed the district's general-fund cushion, which the presenter described as roughly $9'$10 million going into the next fiscal year, plus a one-time fund balance of about $225 million and a $50 million rainy-day requirement. "Going into next year, we'll have $225,000,000 in one-time funding, if you will," Dr. Vidi said, and noted $50,000,000 is reserved per district policy.
The approved budget funds all authorized positions and includes negotiated salary increases already committed under two-year agreements. The package also keeps discretionary school spending at prior-year levels and funds continued literacy lawsuit positions and a transportation pilot to provide yellow-bus service at Henry Ford, East English Village and Finney next fall.
Officials also reviewed the district's approach to phase-out schools that have shrinking enrollment. Dr. Vidi said several schools could drop below 100 students next year and reiterated a prior board policy that grade levels with fewer than 10 students would be dissolved; staff said accelerating planned closings could yield $1'$19 million in savings for fiscal 2026'27 if needed, but emphasized no immediate closures were being recommended for the coming summer.
Action: The board moved to adopt the annual budget and the motion carried on a voice vote. The motion was approved by voice vote; no roll-call tally was given in the public record.
