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Dearborn presents 2026-27 budget framework as trustees debate enrollment and open-district options
Summary
Finance staff outlined the 2026-27 budget assumptions — state aid, student count, and compensation — noting a possible $250 per-pupil state increase, projected enrollment gain (~278 FTE), and that moving $34 million in categorical grants into the foundation allowance could change restrictions; trustees questioned open-district proposals and heard millage and staffing projections.
Thomas (Tom) Wall, the district’s executive director for business affairs, presented the Dearborn Public Schools 2026-27 budget framework at the May 11 public hearing, focusing on three principal drivers: state aid, student enrollment and staff compensation.
Wall told the board that the governor’s proposal and legislative discussions include roughly a $250 per-pupil increase in the foundation allowance and a move to 'band' funding to target supports for ELL and at-risk students. He warned, however, that the Legislature and governor’s plans differ and that final state figures will be confirmed at the revenue-consensus meeting later in May.
On student counts, Wall said the district expects modest growth — about 278 FTE — while noting statewide declines in enrollment. On compensation, he said a 1% across‑the‑board raise would equal roughly $1.8 million in additional staffing costs; the district ran three scenarios that assumed between a 1% and 3% increase depending on final revenue and enrollment.
Wall explained that some categorical grants (an at-risk fund and section 41 funds) are being discussed at the state level for inclusion into the foundation allowance. For Dearborn that would change how previously restricted categorical dollars are accounted for and could affect allowable uses. He also outlined retiree cost assumptions, staffing-model impacts and three fund-balance scenarios showing the district’s projected reserves under different outcomes.
Trustees asked for more detailed breakdowns — including expenditures for central office and EL funding totals — and debated whether to consider reopening district boundaries (an "open district" policy) to bring in additional students. Multiple trustees cautioned that open-district proposals should not be advanced during the bond campaign and recommended studying root causes of recent enrollment shifts before proposing policy changes.
Wall said the district must adopt a budget by June 30 and that staff will refine numbers after state revenue is finalized; board adoption is scheduled for the June meeting.
