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State superintendent praises Flint progress, warns district must eliminate structural budget deficit
Summary
Dr. Michael Rice and Genesee ISD leaders told the Flint Board of Education that the district has made measurable academic and administrative progress but continues to depend on one-time funds to cover recurring costs, creating a structural deficit officials must eliminate to sustain improvements.
State Superintendent Dr. Michael Rice told the Flint Board of Education at its meeting that the district has made progress under its partnership agreement with the Michigan Department of Education and the Genesee Intermediate School District (GISD), but nonetheless faces a structural budget shortfall that must be corrected.
"It's critical that you reduce and ultimately eliminate the structural deficit so that you are able to fully serve Flint students," Dr. Rice said, adding that one-time federal pandemic relief funds (ESSER) and use of fund balance have masked the district's recurring revenue shortfall.
Why it matters: Flint officials have used one-time money for recurring costs, and Rice and GISD leaders said that approach is unsustainable. Flint's finance director previously estimated recurring expenditures exceed recurring revenue by roughly $14,000,000; Rice noted the district's recent fiscal-year 2025 budget amendment drew $17,000,000 from fund balance, of which $7,000,000 covered higher-than-expected construction costs and $10,000,000 supported recurring spending.
Rice framed the gap as a structural deficit:…
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