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District proposes budget amendment, adds MSR revenue and recommends $1 million transfer to capital projects
Summary
At the Dec. 9 meeting staff outlined a proposed 2024–25 budget amendment updating state retirement categoricals (MSRs), projecting higher interest earnings and recommending a $1,000,000 transfer from the general fund to capital projects; the board asked that the full amendment be placed on the next regular meeting agenda for a vote.
Livonia Public Schools finance staff presented a first budget amendment for fiscal 2024–25 at the Dec. 9 Committee of the Whole meeting that reflects new state categorical revenue, stronger interest earnings and planned reallocations for capital projects.
Missus Smith told the board she now expects general fund revenue of “just over $183,000,000” for the year — up from the $175 million estimate used in the district’s June proposed budget — driven largely by new state categorical (MSR) revenue for retirement-related relief and by higher interest income on cash balances. Smith summarized a package of categorical adjustments the presentation labeled by section codes (for example, 147A1, 147A2, 147A4, 147C1, 147C2, 147E and a new 147G), and she said MSR‑related changes sum to about $6.9 million in additional revenue to the general fund.
Smith noted some categorical funds are “flow‑through” items that the district records in revenue and immediately remits (for example, certain ORS remittances) and that one newly announced refund for retiree health insurance (a 3% refund referenced as section 147G) still lacks final state guidance on calculation and timing.
On expenditures, Smith said the changes produce estimated general fund expenditures of roughly $185 million and an ending fund balance near 17% of expenditures under current assumptions. The update also reflected $500,000 of projected additional interest earnings and other small changes; Smith said interest earnings are trending higher than originally projected and she anticipates about $1.7 million in interest revenue for the year.
Board members discussed whether to increase a planned transfer from the general fund to the capital projects fund. At the committee meeting Smith had proposed a $500,000 transfer in the adopted budget and described a possible $1.5 million transfer to advance facility projects. Board members expressed caution about eroding fund balance; after discussion members asked staff to include a $1,000,000 transfer in the amendment to be voted on at the next regular meeting. Mrs. Oquist suggested a middle ground of $1,000,000; Mrs. Jarvis and Mrs. Burton said they supported that approach.
Smith said the amendment will be presented on the consent agenda at the next board meeting and that she will continue to monitor incoming state aid reports and categorical guidance before finalizing figures.
No formal amendment vote was recorded during the committee meeting; staff requested placement of the amendment on the next regular meeting agenda for board action.
