Westwood Heights board adopts 2024-25 final budget, approves initial 2025-26 budget and short-term borrowing resolution

The Westwood Heights Schools Board of Education on Tuesday adopted the district's final 2024-25 budget, certified the 2025 tax rate and approved an initial 2025-26 budget, while authorizing a short-term borrowing resolution of up to $2 million through the Michigan Finance Authority to cover possible cash-flow needs.

A district finance staff member, presenting the fiscal summary, said the district budgeted roughly $21.7 million in revenues for the year and expects to close the 2024-25 fiscal year with about $21.6 million in final revenue, a decline of roughly $113,000 tied to unspent grants carried forward to the next year. "We are ending the year with a blended count of just under 1,200 students," the staff member said, describing the district as one with declining enrollment and noting that the blended count combines fall and spring counts.

The presenter told the board the district currently expects to finish the year with an estimated shortfall of about $915,000 and a fund balance of about $5.2 million (approximately 23.24 percent of general fund expenditures). For 2025-26, using current assumptions and pending the state budget, the administration projected a roughly $3 million reduction in fund balance, leaving an estimated ending balance of about $2.2 million (about 10.19 percent).

Nut graf: The board advanced multiple fiscal measures that keep the district solvent in the near term but leave it exposed to state budget decisions and continued enrollment decline. The administration recommended conservative assumptions for 2025-26 because the Michigan state budget had not been finalized at the time of the meeting; the board deferred further adjustments until state action and the district's fall count are available.

Budget details and context

Board members and staff attributed the higher fund balance in 2022-23 and 2023-24 largely to one-time COVID-era ESSER federal funds, which the presenter said were substantially spent in 2023-24. The presentation listed several revenue and expenditure drivers for 2025-26: a proposed foundation allowance increase of $10,000 per the state proposal (an estimated $392 per student), a budgeted decline of about 100 students (the presenter said that equates to nearly 90 FTE under the blended-count methodology), no assumed enrollment-stabilization funding because the state had not confirmed allotments, and a 2.9 percent increase in health-care costs set by the state.

The presenter also described program- and fund-level details: the food-service fund began the year with roughly $230,000 and is projected to end near $100,000 because expenses currently outpace revenue; the sinking fund (levied at roughly 2.1895 mills) is applied to nonvoted building and site bonds but does not fully cover annual debt service, so the general fund supplements bond payments; and a green revolving account collects estimated energy savings from solar panels and is used to pay related bonds. Transportation categorical aid from the state is projected to decrease, shifting more transportation costs into the general fund.

On enrollment, the presenter and board members said the largest recent driver of enrollment declines was the district's elimination of its virtual academy. The presenter said virtual-academy expenses had exceeded $1 million annually while yielding only a fractional FTE benefit for the district. "Economically, we don't think that is beneficial for us," the presenter said of the virtual program.

Short-term borrowing resolution

The board approved a resolution authorizing the district to borrow, if needed, up to $2,000,000 through the Michigan Finance Authority to cover cash-flow shortfalls pending the state budget and receipt of state aid. The motion specifies borrowing "not to exceed $2,000,000 from state aid pending completion of the cash-flow analysis." The board passed that resolution 4-1.

Board members who moved and seconded motions

Board member Miss Johnson moved the motions to adopt the final 2024-25 budget, certify the 2025 tax rate and approve the initial 2025-26 budget. Miss Corbin supported the motions to adopt the final budget and tax-rate certification; Miss Culverin supported approval of the initial 2025-26 budget. The borrowing resolution was moved by Miss Johnson and supported on the floor; the final recorded vote on that borrowing motion was 4 ayes and 1 opposed.

Votes at a glance

- Final 2024-25 budget (adoption): Motion moved by Miss Johnson; supported by Miss Corbin. Vote: 5 ayes, 0 opposes. Notes: Administration presented a final revenue estimate of roughly $21.6M, an estimated $915,000 shortfall for the year and a projected ending general fund balance of about $5.2M (23.24%).

- Final 2025 tax-rate certification: Motion moved by Miss Johnson; supported by Miss Corbin. Vote: 5 ayes, 0 opposes.

- Initial 2025-26 budget (approval): Motion moved by Miss Johnson; supported by Miss Culverin. Vote: 5 ayes, 0 opposes. Notes: Budget built on conservative assumptions pending state action; projected decrease to ~10.19% fund balance without additional state aid or enrollment improvements.

- Resolution to borrow through Michigan Finance Authority (not to exceed $2,000,000): Motion moved by Miss Johnson; supported on the floor. Vote: 4 ayes, 1 opposed. Notes: Borrowing would be limited to the amount actually needed; administration said it would only draw funds if necessary to meet payroll and obligations before state aid arrives.

- Personnel and other actions (summary): The board approved several personnel items and administrative actions including resignations (Addie Russell effective 06/07/2025 and a separate resignation effective 06/06/2025 as presented), approval of a recommended hire for a high-school science position, renewal of administrator and director contracts, Michigan High School Athletic Association membership resolution for 2025-26, and the 2025-26 calendar. All of those motions passed by recorded voice votes during the meeting; counts reported on the floor matched the items presented (see provenance for motions and votes). For items where specifics in the transcript were incomplete (for example, a hire listed with inconsistent name fragments in the record), the agenda language or transcript names are reported as stated.

Public comment and closing

During public comment, a resident urged the board and staff to reach out to the family of recently deceased board member or community figure Mr. Coleman and said he had privately checked on the family and encouraged the board to offer support. The superintendent and board members acknowledged the comment; the meeting concluded after brief superintendent remarks and board expressions of condolence.

Ending: The board recessed following adjournment and noted upcoming summer work on staffing and budget monitoring. The administration said it will revisit budget assumptions once the state enacts its budget and after the district's fall count is finalized.