Westwood Heights Board adopts final 2024-25 budget, approves initial 2025-26 budget and borrowing resolution; several personnel and routine items pass

The Westwood Heights Schools Board of Education approved the district's final 2024-25 budget, certified the 2024-25 tax rate, adopted an initial 2025-26 budget and authorized a borrowing resolution at its meeting. Board members also approved multiple personnel actions, contract renewals and routine items.

Board Member Johnson moved adoption of the final 2024-25 budget and the motion was supported by Board Member Corbin. The vote to adopt the final 2024-25 budget was 5-0 in favor. The board subsequently adopted the final 2024-25 tax rate certification (5-0) and approved the initial 2025-26 budget (5-0).

District presenters told the board the district ended the year with final revenues of about $21.6 million compared with budgeted revenues near $21.7 million, a revenue decrease of roughly $113,000 driven largely by unspent grants being carried forward. The district is a declining-enrollment district and reported a blended student count just under 1,200 for the current year.

The administration reported an estimated 2023-24 year-end general fund balance of about $5.2 million (approximately 23.24% of expenditures), down slightly from the prior year. For 2025-26, the board was presented with a preliminary budget that assumes a number of state funding uncertainties and forecasts a projected reduction in the fund balance to about $2.2 million (about 10.19% of expenditures) absent additional state aid. District staff said the projected decline in fund balance stems primarily from lower expected revenue rather than higher planned spending.

Officials outlined several drivers of the budget picture: a likely 2.9% increase in health-care costs imposed by the state's hard cap; reduced state transportation aid tied to the '22-all transportation categorical; uncertain enrollment stabilization funding for declining-enrollment districts; lower carryover from network funding; and the elimination of expenses tied to the district's MyVirtual Academy (online students), which the district no longer includes in its budget. Administrators said that while the district previously had extra student counts from the virtual academy, those students generated partial FTE revenue while the district incurred significant virtual-program expenses in excess of $1 million in prior years, and the district concluded the program was not economically beneficial.

Board members and staff discussed several restricted funds and service funds. The food service fund began the year with about $230,000 but is projected to end the year near $100,000 because expenses currently exceed revenues; the board was told the district will review staffing and operations this summer. The sinking fund, levied at about 2.1895 mills, is being used against two nonvoted building-and-site bonds; sinking-fund receipts do not fully cover debt service, and general fund dollars make up the remainder. The district also tracks a green revolving fund that captures estimated energy savings from installed solar panels and applies those savings to related bond payments.

On a separate motion moved by Board Member Johnson and supported by Board Member Coburn, the board approved a resolution authorizing the district to borrow through the Michigan Finance Authority (MFA) in an amount not to exceed $2,000,000, pending completion of a cash-flow analysis. The borrowing motion carried 4-1; one board member voted no and two board members spoke during discussion expressing a general preference to avoid borrowing when possible but acknowledging cash-flow timing concerns tied to state aid and payroll obligations.

Other action items approved during the meeting included: acceptance of resignations effective June 2025; approval of a new high-school science teacher for fall 2025 (a Teach For America candidate); renewal of administrator and director contracts; approval of membership in the Michigan High School Athletic Association for 2025-26; and adoption of the 2025-26 school calendar. All of those routine personnel and policy items passed by recorded votes of 5-0 where noted.

Votes at a glance - Adopt final 2024-25 budget: moved by Board Member Johnson; supported by Board Member Corbin; vote 5-0; outcome: approved. - Adopt final 2024-25 tax rate certification: moved by Board Member Johnson; supported by Board Member Corbin; vote 5-0; outcome: approved. - Adopt initial 2025-26 budget: moved by Board Member Johnson; supported by Board Member Culverin; vote 5-0; outcome: approved. - Approve resolution to borrow (MFA) not to exceed $2,000,000 pending cash flow analysis: moved by Board Member Johnson; supported by Board Member Coburn; vote 4-1; outcome: approved. - Accept resignation of Addie Russell (effective 06/07/2025): moved by Board Member Johnson; supported by Board Member Colburn; vote 5-0; outcome: approved. - Accept resignation of staff (other noted retirements): vote 5-0; outcome: approved. - Approve hire: science teacher (fall 2025): moved by Board Member Johnson; supported by Board Member Colburn; vote 5-0; outcome: approved. - Renew administrator and director contracts: vote 5-0; outcome: approved. - Approve Michigan High School Athletic Association membership (2025-26): vote 5-0; outcome: approved. - Approve 2025-26 calendar: vote 5-0; outcome: approved.

Why it matters: Board discussion emphasized that the district's near-term financial outlook depends heavily on state budget actions and the final 2025-26 student count. Staff said the district will revisit the preliminary 2025-26 budget when the state passes its budget and when fall student counts are finalized.

What's next: District staff said they will monitor state budget developments, complete the cash-flow analysis that underpins the MFA borrowing resolution before drawing any funds, and adjust the 2025-26 budget after the state budget and certified enrollment counts are available.

Sources: meeting presentation and board motions as recorded in the meeting transcript; board roll-call votes recorded during the meeting.