DeWitt board approves amended 2025–26 budget with modest structural deficit, holds fund balance near policy range

The DeWitt Public Schools Board of Education on Dec. 8 approved an amended 2025–26 general fund budget that shows total revenues of $4,426,960 and total expenditures of $43,114,222, producing a projected deficit of $1,687,262 and an estimated fund balance of $7,595,410 as of June 30, 2026.

Assistant Superintendent Rob Spagnoldo told the board the amendment adds roughly $856,000 in revenue while recognizing about $835,000 in additional expenditures. Much of the apparent revenue increase reflects state categorical changes, adjustments for property tax valuation and small enrollment shifts; Spagnoldo cautioned that some state dollars arrive with matching expenditure requirements and limited flexibility.

"For every dollar increase we have in local revenue, the state reduces our state aid by a dollar," Spagnoldo said, explaining a roughly $69,000 increase in property tax revenue is offset by a like decrease in state aid. He highlighted several categorical changes in the final state budget, including the elimination of a retirement cost offset (about $188,000) and a one‑time $305,000 categorical intended to offset retirement costs. Spagnoldo said those retirement changes and other categoricals largely explain the net revenue and expenditure movements.

Spagnoldo also noted the state allocated roughly $452,000 for educator compensation that must be passed through to staff; the district will not recognize usable savings from that allocation until the state treasury releases the funds and the Michigan Department of Education issues distribution guidance.

After accounting for one‑time items and assigned fund balance for positions put in place with federal COVID dollars, Spagnoldo said the district's structurally recurring deficit is about $354,000 — roughly under 1 percent of the district's total budget. He estimated the district will end 2025–26 with an unassigned fund balance near 15.6%, placing the total fund balance at about 17.6% of expenditures.

Board members asked when reserved federal funds must be spent; Spagnoldo said there is no immediate deadline and the district has flexibility to use those funds over the next two to three years. He warned long‑term state revenue growth may be constrained and urged vigilance as the district prepares for 2026–27 budgeting.

The board moved and approved the budget amendment by voice vote. The board chair announced, "the ayes have it."