Huron Valley Schools warns of potential $5 million budget gap, schedules study session

The Huron Valley Schools Board received a budget update March 9 that flagged a possible multi‑million‑dollar shortfall and set a board study session to prioritize spending.

CFO Jeffrey Van Goghten said the district’s amended budget shows revenues about 3% below last year and the single largest hit was to a state offset tied to MPSERS, which he described as “a $5,000,000 hit in revenue.” Van Goghten said administration is asking the board under the consent agenda to consider adjustments to roughly $13 million in federal and state grants and reiterated staff will review those grants at the study session.

Superintendent Dr. Salah and Van Goghten framed the district’s budget as heavily weighted toward fixed costs, noting about 85% of the general fund supports collective bargaining obligations and other recurring expenses while about 15% is discretionary and the focus of immediate line‑item review. Dr. Salah asked board members to identify five to ten line items they want discussed to build board consensus before the June budget adoption.

Board members and administrators discussed enrollment and cash‑balance scenarios. Van Goghten said recent audits showed prior years performed better than budgeted, but reiterated current estimates could require drawing from reserves; in the materials he projected a possible fund‑balance range (administration noted an illustrative projection around 13% under current assumptions and warned worst‑case scenarios could reduce the fund balance further).

The board scheduled a study session to review the detailed eight‑page line‑item packet and directed administration to bring more refined revenue and expenditure scenarios. No final cuts or staffing changes were approved at the meeting; administrators said they will return with options and clarifications at the study session.