Interim CFO Maria says shared-service contract is 'unadministrable,' urges renegotiation before June 30, 2026

Interim Chief Financial Officer Maria told the Redford Union Schools District No. 1 board on March 2, 2026 that the district's shared-service contract with a private provider is "practically unadministrable" and that the administration is preparing to terminate or renegotiate the agreement before an automatic three-year renewal takes effect on June 30, 2026.

Maria said the program currently records 382.57 full-time-equivalent students and produces roughly $3.8 million in state revenue, but the district is netting about $700,000 a year and should be closer to $1,000,000. "We have 382.57 FTE in the program," Maria said, and "we are currently netting about 700,000. We should be netting closer to 1,000,000 dollars." She told trustees the district pays the provider about $584,000 annually while running the same services in-house would cost roughly $385,000.

Why it matters: the contract language and billing practices could cost the district hundreds of thousands of dollars annually and carry a procedural deadline that automatically renews the provider's contract for three years unless the district gives timely notice.

Maria described multiple problems: ambiguous and conflicting contract language, provider calculations that differ from the written contract, and invoice line items for supply reimbursements where receipts were incomplete. "Receipts could be provided, but for 6,000 less than what we are being billed for," she told the board, describing an example where reimbursements did not match receipts. She also said the contract contains "a very onerous out clause" that requires the district to notify the vendor by June 30, 2026 or face a three-year automatic renewal.

Board members asked how broadly the shared-service program reaches and whether it is feasible to bring the program in-house. Maria said the program traces back to 2013 and later expanded beyond the county; most partner schools are nonpublic (many Catholic, she said), and state rules limit annual growth for existing programs to approximately 10 percent of current enrollment. Board discussion covered the trade-offs between contracting and in-house administration: bringing services inside would require hiring staff and adding HR and people-accounting responsibilities, while an outside provider can leverage a larger network of nonpublic partners.

Board President praised Maria's work: "This is why we have you," the president said, thanking Maria for identifying the issues. Trustee Bailey and others pressed for clarity on the counting rules and on how the district would meet the June notice deadline if they decide to terminate. Maria said district attorneys are involved and that the administration intends to present termination or transition documents ahead of the deadline and to issue a request for proposals if needed so the district can "start clean" for the 2026-27 school year.

What happens next: Maria said the administration will continue negotiations with the vendor, will consult district counsel, and will keep the board updated. The board did not take formal action on the contract at the March 2 meeting.