Dearborn superintendent warns federal funding cuts, state budget uncertainty could cost district millions

Superintendent Dr. Malayko told the Dearborn Public Schools Board of Education at its May 12 regular meeting that the district faces immediate and potential future cuts to federal and state funding that could materially affect operations and programs.

Dr. Malayko said the district already has been notified of approximately $5,800,000 in reductions tied to federal Titles II, III and IV. He also said a separate health-related federal program elimination was retroactive and represented about $1,400,000 over two years. Accounting for program support from Title I and IDEA, the superintendent said the district could be facing roughly $30,000,000 of federal and related funding pressure if all currently discussed reductions take effect.

Those figures matter because some programs referenced — including Title I and IDEA (the Individuals with Disabilities Education Act) — fund services the district is required to provide. "So far Title I and IDEA which is the special ed have not been reduced — we're monitoring that very closely," Dr. Malayko said. He warned that if mandated programs lose federal support, the district would need to cover the shortfall from the general fund.

Why it matters: The superintendent said the combination of federal cuts and a protracted state budget process could force the district to make difficult choices or delay investments. Dr. Malayko said the district must adopt a budget by June 30 under state law even though state-level appropriations may remain unsettled into September.

Most important facts - Federal notices: Dr. Malayko reported about $5.8 million in announced cuts tied to Title II, Title III and Title IV grants and an additional roughly $1.4 million in a recent health-related federal elimination described to the board as retroactive. - Potential further exposure: The superintendent said Title I is about $15,000,000 and IDEA about $5,000,000 for the district; combining those amounts with the other cuts could approach $30,000,000 in pressure on district revenues. - State budget timing and risk: Dr. Malayko said the district does not expect the state budget to be resolved before September, requiring the board to adopt an estimate by the June 30 legal deadline. - At-risk categorical grant: He noted the district's at-risk categorical grant is approximately $24,000,000 and emphasized that categorical funding negotiations at the state level could affect that amount.

Supporting details and context Dr. Malayko said some disputes will most likely proceed to the courts and that districts are coordinating with attorneys at the state and national level. He described membership in state and national superintendent groups as useful for advocacy and for legal and policy coordination. The superintendent said the district has added mental-health supports in recent years — including partnerships such as Care Solace and an internal staff support program (U Alliance) — and noted relatively high social-worker staffing levels.

On facilities planning, Dr. Malayko reported that the district is advancing bond planning and that architecture/engineering firm Quinn Evans presented infrastructure data at a recent meeting. He said trustees may receive additional briefings individually or in small groups before a future board meeting.

Board exchange and next steps Trustee Patrick Leshkov asked whether the federal reductions were likely to be resolved; Dr. Malayko said he expects many of the issues will be litigated and that the district is working with attorneys. The superintendent told the board staff will continue to monitor developments, update trustees, and incorporate contingencies into the budget process.

Ending Dr. Malayko asked the board to continue monitoring the federal and state budget developments closely and said staff would provide follow-up materials to trustees. The district will present its June budget estimate on schedule while continuing advocacy and legal monitoring.