DeWitt Public Schools projects mid-six-figure shortfall as state proposals shift funding formulas

DeWitt Public Schools board members were told the district faces a material budget gap for fiscal 2026–27 even after state proposals include a $250 per-pupil foundation allowance increase.

Rob, a district presenter, summarized competing versions of the state K–12 budget and warned that changes to how at‑risk and special-education funding is calculated could affect the district’s bottom line. “The governor did propose a $250 foundation allowance for all districts,” Rob said, but he cautioned that formula changes mean “we really need to see how that formula plays out to see if there's going to be any actual increases for us as a district year-over-year.”

Why it matters: the board must adopt a balanced budget by the end of the fiscal year, and several moving parts — legislative language, litigation over the mental‑health/school‑safety categorical, and insurance or retirement adjustments — could widen or narrow the gap before adoption.

Rob walked the board through specific line items the district used for its projection. He reported a headline structural shortfall of about $687,000 if state funding and local assumptions remain unchanged, driven in part by a 23‑student decline that he estimated reduces revenue by roughly $171,000 after applying the state’s enrollment stabilization. The presenter identified revenue increases and decreases that partially offset that figure: the $250 per‑pupil increase would add about $772,000 in revenue for the district, while elimination of the MERS employee‑healthcare categorical would reduce revenue by about $36,000 and a reduction in the retirement‑cost offset categorical would reduce revenue by about $65,000.

Staffing and other adjustments narrowed the gap in the district’s model, Rob said. The district expects six teacher retirements (four positions to be refilled), producing a net savings of about $394,000; additional wage, step and longevity costs, a proposed new general‑professional FTE (+$28,000), and insurance and utility estimates offset some savings. After one‑time adjustments and the mix of assumptions, Rob said the district’s net projected deficit is roughly $347,000 under the governor/house scenarios and about $268,000 under the Senate scenario.

Board action and next steps: the board approved scheduling the annual budget hearing for Monday, June 8 at 6 p.m. at district offices and approved a resolution supporting the Clinton County RESA general fund operating budget for 2026–27 as presented in the meeting packet. Rob asked the board to monitor pending litigation over the school‑safety/mental‑health categorical and state insurance legislation; he said the Consensus Revenue Estimating Conference on May 15 will provide the next set of statewide revenue estimates that could affect final figures.

What the district will watch: whether the Legislature adopts the Senate language (which presenter Rob said would remove troubling 2025–26 provisions and allow districts to accept mental‑health/safety dollars), the final retirement rates used in state calculations, and how disputes over categorical language are resolved in the courts. Superintendent Kevin Roitic told the board staff will continue reviewing enrollment, staffing and insurance assumptions and will refine the budget in advance of the finance committee review and June 8 hearing.

The board will return to those items at a finance committee meeting likely scheduled for early June before taking a final vote at the June 8 budget hearing.