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Smith presents 2024'—25 budget amendment; district projects $183M in general-fund revenue and agrees to $1M transfer to capital projects
Summary
Chief financial officer Missus Smith told the board that new state MSR/147-series categoricals and stronger interest earnings would increase projected general-fund revenue to just over $183 million; combined adjustments raise expenditures to about $185 million. The board agreed to a $1,000,000 transfer to the capital projects fund to support facility projects and directed staff to place the full amendment on the regular meeting agenda for a vote.
Missus Smith reviewed a proposed first amendment to the 2024'—25 budget, driven largely by changes in state retirement-related categoricals (147-series/MSR) and stronger-than-projected interest earnings on district cash balances.
Smith said combining all MSR changes totals approximately $6.9 million in additional revenue for the district and that she expects general-fund revenue for the year to be "just over $183,000,000." She explained that some MSR lines are flow-throughs to ORS and that other categoricals reimburse retirement costs; because Smith had built certain retirement expenditures into the proposed budget, some revenue increases must be matched with corresponding recorded expenditures. She called out uncertainty around section 147g (a 3% retiree-health premium refund), noting the Michigan Department of Education and the legislature were still clarifying whether reimbursements are based on prior-year payroll or current-year payroll, and staff were awaiting guidance.
Smith proposed shifting $1,000,000 from the general fund to the capital projects fund to support facility improvements. Board members discussed leaving a healthy fund balance (MASB guidance referenced), and several board members recommended $1,000,000 rather than the originally discussed $1.5 million; Smith said that transfer timing typically occurs in June and the amount can be revisited in subsequent amendments.
Smith walked the board through fund-specific changes (funded projects, special education, bond, sinking fund, food service, scholarship and activity funds) and noted one-time transfers the district used previously to move expenditures into grants with MDE approval. She asked to place the full budget amendment on the next regular meeting agenda for formal approval; the board agreed.
What happens next: Staff will finalize line-item adjustments and distribute the amendment packet for the regular-meeting vote. The transcript records board direction to include the $1,000,000 transfer to facility improvements as part of the amendment packet.
