DeWitt district projects nearly $1.7 million shortfall as state budget talks continue

District staff told the DeWitt Public Schools Board of Education on April 14 that state budget proposals from the governor and the Michigan House would increase foundation funding but leave unresolved categorical and retirement funding that contribute to a local budget gap.

A staff presenter summarized the governor’s February proposal as a $392 per-pupil increase that would put the foundation allowance at $10,000 per pupil and said the House has proposed $417 per pupil. “Back in February, the governor proposed a $392 per pupil foundation allowance, for all districts. That would put us at $10,000 per pupil,” the presenter said.

Despite the increases, district staff said changes to retirement funding and other legislative shifts have left DeWitt with a significant shortfall. The presenter said a retirement funding change enacted for the 2024–25 year was expected to be cost neutral for districts, but in practice created about a $400,000 gap between lost revenue and the retirement rate decrease for DeWitt.

District leaders gave these figures for planning purposes: the board-approved 2024–25 deficit was about $1.6 million; the governor’s foundation increase would generate roughly $1.2 million; a retirement-related categorical reduction removes about $1.1 million; the retirement-rate decrease produced about $546,000 in savings; new health-care categorical funding would add roughly $172,000. As a result, the presenter said the district was looking at a current, working deficit of about $1.7 million and—when counting three non-continuing items—“structurally, right now, we’re dealing with about a budget deficit of about $400,000.”

District staff also reported personnel changes since February: five staff retirements or resignations, three of which the district is not replacing, with estimated savings of $246,000. The presenter said staff hope to reduce the deficit between now and June but cautioned that timing and unresolved state action make final outcomes uncertain.

On the state process, staff said the House’s preliminary plan allocated about 75% of available School Aid Fund dollars and characterized it as a “stop-gap.” The presenter said the Senate budget and the state’s revenue estimating conference timeline in May will affect the final numbers and that a full, formal school-aid budget may not be adopted by the state until later in the year.

Board members asked about district staffing and how unfilled positions’ duties will be absorbed; staff said some work can be absorbed by remaining employees and that high-school scheduling and band staffing remain under consideration. Staff said they will update the board in May as more state budget information becomes available.