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District reports provisional FTE gains and a sharp rise in special-education costs; budget amendment likely
Summary
Director of pupil services presented provisional FTE gains tied to state funding; district presenters reported special-education costs rose sharply year-over-year and said they will return with an amended budget after final state-aid numbers and audits.
Hamtramck School District officials briefed the board on enrollment, FTE counts and state-aid implications, and warned trustees of a substantial year-over-year increase in special-education costs that will require a budget amendment.
Amra Pestovic, the district’s director of pupil services, explained the difference between headcount and full-time-equivalent (FTE) students — FTE, not headcount, drives state funding — and said fall provisional counts will be submitted to the state data system with a November 6 submission deadline and may be adjusted downward by 20–30 FTE after county reconciliation.
Pestovic noted a roughly 3.3% provisional FTE increase year-over-year, but emphasized the counts are provisional and subject to audit. "We still have 2 more weeks to adjust our FTE," she said.
District presenters later reviewed state-aid line items in the recent school-aid bill, noting an estimated foundation increase and a roughly 50/50 split between unrestricted and restricted estimated dollars in the district’s package. They highlighted prescriptive uses for restricted funds (section 31a for at-risk students; section 41 for English-language-learner supports) and new parental-notification requirements for curriculum not designated as evidence-based.
On special education the presenter reported non-transportation special-education costs rose from about $4.1 million to about $8.3 million year-over-year, with anticipated reimbursement formulas that cover roughly 28% of non-transportation costs and approximately 72% of transportation costs. "This year we're estimated to get about $3,800,000," the presenter said, adding that the reimbursement will not fully cover the $4.1M spending gap and that the district will return with an amended budget now that a state-aid packet is available.
Board response and next steps: trustees were informed that final FTEs should be known by mid-December after auditing and that staff will prepare an amended budget to address the special-education shortfall. No formal board action on the budget amendment was taken at the meeting.
