DeWitt board approves 2024–25 budget amendment, projects $1.59 million shortfall but 18% fund balance

DeWitt Public Schools Board of Education members voted to approve an amended 2024–25 general fund budget after a presentation by the district’s finance staff that outlined revenue changes, expenditure adjustments and projected fund balances.

The amendment, described by district finance staff, raises projected total revenue to about $41,617,329 and increases expenditures to roughly $43.2 million, producing an estimated one-year shortfall of about $1,588,235 and an estimated fund balance of $7,934,229 as of June 30, 2025. The board approved the amendment by voice vote with no recorded roll-call tally.

District finance staff said the amendment reflects a mix of local, state, federal and other revenue adjustments. Locally, property tax cash collections increased, producing roughly $114,000 of new local revenue that is offset dollar-for-dollar by a corresponding reduction in state aid under current state funding rules. Athletic gate receipts were cited as up by about $14,000, and the district has received roughly $32,000 to date from a vaping-settlement distribution; those settlement dollars will be spent on a combination of student education and purchases targeted for Everson Woods, the middle school, and the high school.

On the state side, staff projected a net decline in state revenue of about $61,000 driven by several factors: a $114,000 reduction tied to taxable value changes that is mirrored by the local property-tax increase; an enrollment-related loss equal to roughly 13 full-time equivalent students, estimated to reduce revenue by about $129,000; and the state’s decision not to implement an expected foundation allowance increase (staff had budgeted for an assumed increase that did not materialize). District staff also estimated an amount related to a state categorical aimed at partially offsetting enrollment losses; that amount was estimated in the presentation at about $34,000 but described as provisional and subject to proration.

Staff reported changes tied to retirement funding and flow-through items: an approximately $1,000,000 increase in one retirement-related offset, partly offset by about $583,000 in flow-through unfunded liability dollars that the district must remit to required services. Net changes in those lines were described as largely offsetting on the district bottom line, but they are reflected in the amendment.

Several special-education categorical adjustments were described: an ongoing increase of about $83,000 and a one-time true-up of about $25,000 based on last year’s actuals. The presentation also described a roughly $261,000 reduction in school mental-health and safety categorical funds compared with prior allocations, and a literacy categorical (identified in the presentation as section 35j) of about $451,000, of which staff said roughly $380,000 was used for the Wonders curriculum adopted this spring and the remainder for related professional development.

Federal and transfer revenues had smaller net changes. The district reported a modest net change on federal revenue and an increase in transfers of about $669,000. The transfers reflected funds flowing from intermediate service districts and other sources: staff cited $158,000 tied to successful millage results that will flow to the local, roughly $21,000 tied to vocational programming, an installment purchase agreement of about $450,000 used in part to fund bus purchases, and about $40,000 in proceeds from the sale of two buses.

On expenditures, the amendment adds roughly $1.5 million over the June budget. Notable additions include costs tied to recently finalized labor agreements and off‑schedule one-time payments to employees, health insurance adjustments following open enrollment, higher-than-anticipated substitute-teacher usage, an increase in workers’ compensation costs, and the purchase/financing of district vehicles and buses. The amendment also funds staffing changes described as "11 key positions": a mix of specialists, a dean/assistant principal at the high school and three paraprofessionals; staff said some positions were previously budgeted and the amendment funds additional positions as the district phases them in.

District staff characterized the one-year deficit as largely nonstructural because it includes several one-time items: the off‑schedule employee payments, spending down of equalization funds, and certain categorical expenditures. After removing those nonrecurring items, staff estimated a structural shortfall of approximately $132,000 on a roughly $43 million budget.

Fund-balance projections presented to the board showed the district starting the year with an assigned fund balance of $1,707,667 set aside for the 11 key positions. Staff estimated using about $486,000 of that during the year, leaving about $1.2 million assigned to preserve those positions for about two and a half additional years if needed. The district’s unreserved fund balance was presented at about $6.7 million, which staff said equates to roughly 15.5% of the budget; combined with assigned funds these figures produced the roughly 18.36% fund-balance percentage cited in the presentation.

Board members asked about legislative and federal uncertainties that could affect future budgets. Finance staff noted potential changes in state budgeting and the timing of state budget enactments, warning that a split legislature could delay final state budgets later into the summer months and increase fiscal uncertainty for districts that are required by law to adopt local budgets by the end of June.

The board approved the amended budget by voice vote; the motion was moved and seconded on a recommendation from district finance leaders and the superintendent.

Less-critical details and next steps: staff said one-time settlement and categorical funds will be allocated to buildings for intended purposes and that the district will continue monitoring legislative developments and enrollment trends as it finalizes longer-term planning.