Ann Arbor Schools report stronger cash position in January; trustees hear budget trends and potential revision

Ann Arbor Public Schools finance staff presented the district’s January monitoring report on March 5, highlighting a stronger cash position compared with the same month last year and outlining trends that could prompt a budget revision before June.

Director of Finance Darcy Francoeur said cash and investments at the end of January were about $9.7 million higher year over year, largely because of winter tax receipts and lower expenditures during the month. She reported roughly $23 million in January general-fund expenditures and said year-to-date revenues were up about $4.9 million compared with last year, driven mainly by property-tax collections and slightly higher special-education (Act 18) funds.

Francoeur reported the district had added $34.6 million to the general-fund balance year-to-date on the snapshot date, versus a smaller addition in the prior year, but cautioned those figures are a single-day snapshot and will change as the year continues. She said expenditures were down in January compared with the prior year (noting reductions in wages/retirement and purchase services) and that some recently settled retroactive salary increases will appear in later months’ actuals; staff is prepared to pursue a budget revision before June if needed to reflect new labor costs.

Trustees asked for clarifications about the fund-balance percentages (general fund shown around 3.25% of revenue in the presentation), the timing of retroactive-pay impacts, and whether the district is effectively on budget at 55% of revenues collected and 46.1% of expenditures at the midyear point. Francoeur said the district is trending close to expectations but that timing of receipts and pay periods can shift those figures.

The board heard this report as part of routine monthly monitoring; no formal action was required.