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Okemos presents first 2024–25 budget revision; one-time state retirement relief offsets remediation costs
Summary
Executive Director Lentz presented a first revision to the 2024–25 budget showing roughly $235,000 in positive revenue adjustments and $763,000 in expenditure decreases after one-time state retirement funding and true-ups, with a resulting available funding decrease of about $527,000 driven largely by one-time environmental remediation and insurance increases.
Executive Director Liz Lentz presented the district’s first revision to the 2024–25 budget at the Dec. 5 Okemos Board of Education meeting, walking trustees through revenue true-ups, grant changes and one-time expenditures that together change the district’s available funding position.
Lentz said the state provided a one-time payment tied to a reduction in the retirement cap (the unfunded actuarial accrued liability), which produced an approximate $1.9 million one-time revenue effect tied to a reduction in retirement expenditures. She explained that this mechanism produces a revenue impact this year but will show as reduced retirement expenditures next year. "That equated to approximately a $4.10 per pupil" in this year’s accounting, Lentz said.
On enrollment, the district’s blended FTE projection was revised down by about 3.15 FTE (roughly $30,000). Special education adjustments and ISD true-ups added revenue; community education revenue fell about $92,000 because bond construction limited facility rentals. Lentz flagged insurance premium increases (noting a roughly 16% increase for Mesa insurance that produced a $225,000 six-month blend impact) and ongoing monitoring of insurance claims tied to Chippewa roof repair and environmental remediation at Kennewa.
Lentz summarized the net numbers: total revenues moved from roughly $70,000,000 to $70,300,000 (up about $235,000) while expenditures were adjusted down (budgeted changes and one-time items) producing a net $527,000 decrease in available funding; after auditing adjustments to the beginning fund balance the district’s fund balance is projected at about $9.3 million (12.9% of expenditures). Lentz stressed many items are one-time and that the administration will build a multi-year overview in January to model 2025–26 and 2026–27 scenarios.
Trustees asked clarifying questions about the retirement cap change, special education funding timing, trends in enrollment and the timing of further budget reviews; Lentz said the ISD special education revenue estimate will be clearer in January and committed to presenting a multiyear budget overview once more data are available.
The board will consider adopting the revision at its January meeting; Lentz described further budget steps: multiyear modeling in late January, assumptions and reviews through spring and a proposed 2025–26 budget proposed in June.
