Dearborn City School District holds public hearing on proposed 2024–25 budget; officials warn of possible FTE reductions

Tom Wall, a district staff member who presented the plan at a public hearing, told the Dearborn City School District Board of Education that the administration will bring a final budget for adoption at the board’s June 23 meeting and warned that state and federal funding uncertainty could force staff reductions.

The presentation reviewed revenue drivers for the school aid fund, recent changes in local taxable value, projected per-pupil increases, and how those figures feed into contract obligations and staffing. "We have to adopt a budget by June 30. Otherwise, we're in violation of state law," Wall said, adding that a consensus revenue estimate expected this Friday would clarify how much money will be available.

Why it matters: the budget discussion explains how state decisions and federal grant changes could translate into personnel and program changes at schools. Trustees and members of the public pressed the administration for clearer, accessible materials and for safeguards to protect classroom positions and services.

Wall told the board the district is using a most-likely scenario for planning but retains best- and worst-case models. The presentation said the district currently projects a net reduction of about 35.79 FTEs for 2024–25; a best-case (more favorable state action) could leave the district with a roughly $4.2 million surplus and avoid layoffs, while a worst-case could mean roughly 60 student- or employee-level reductions.

On revenue and tax items, Wall discussed the components that feed the school aid fund: sales tax, income tax and the state education tax, and local property taxes. He said the district expects roughly a $392 per-pupil increase in the foundation allowance used for state aid and estimated state aid revenue of about $199,000,000 (net of the standard 18-mill levy). The presentation showed the district’s calculated hold-harmless millage at about 2.2 mills and a debt levy rate around 1.22 mills after a near 9.95% increase in taxable value in the City of Dearborn.

Contract and staffing obligations were a central focus. Wall said collective-bargaining settlements set a 2% base increase for employees and an additional roughly 2% tied to the foundation allowance increase; the district plans to pay the 2% base in July and retroactively add any state-authorized increases once the law is finalized. He also said the district is budgeting $2,000,000 for capital repairs and replacements and that the district’s unfunded actuarial liability (UAL) rate recently rose from about 10.58 to 16.89, which has pushed retirement costs higher.

Trustees and the public pressed administration for more transparency and clearer materials. Amira Saidi, a resident, said the presentation was hard to follow without printed handouts: "First of all, it was really hard to follow the presentation," she said, and asked for printed charts for future hearings. Trustee Berry and others asked whether students lost in recent years are returning; the administration said enrollment appears largely flat for next year after a late post-count increase during the past year.

Trustee Ajami raised concerns about recruitment and standards: "...when we're going to try to capture these kids or ... convince them to come back, that we don't lower our standards in order to make it appealing to those students who are looking for a fast graduation projection," Ajami said, urging the district not to reduce academic expectations to regain enrollment.

Board members and staff also discussed federal grant uncertainty. The administration said most federal grant funds are used for staff and program costs and that possible federal reductions (trustees cited Title II, III and other federal formulas) could produce further budgetary pressure; the district is modeling scenarios that include those potential cuts. Wall and other administrators said some of the grant-funded positions and programs could be shifted, and that the district is prioritizing protection of classroom staffing where possible.

Next steps and transparency: the administration said the presentation materials are available on the district website and offered to provide more detailed reports on how federal grant dollars are spent and where proposed cuts would be applied. Board members said they would consider additional public forums if community members want more time and detail to review the budget before adoption on June 23.

No formal votes were taken during the hearing; the district will return to the board for adoption of the 2024–25 budget at a later public meeting.