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Ann Arbor school board adopts FY26 amendment and approves FY27 proposed budget amid questions about contracts and reserves
Summary
Trustees approved an amendment to the FY26 general fund budget and adopted the FY27 proposed budget after a second briefing; board and staff emphasized the district faces a multi-million-dollar shortfall and will continue contract and personnel reviews to close gaps.
The Ann Arbor Public Schools Board adopted an amendment to the FY26 general fund budget and approved the FY27 proposed budget after the board’s second briefing on the district’s fiscal outlook.
CFO Mr. Britton told trustees that updated slides clarify contracted services and personnel costs; when purchase services that effectively pay people (transportation, custodial, grounds, other contracted staff) are combined with wages and benefits, roughly 87% of FY26 costs are tied to people-related expenditures. Britton said contracting some services saved the district an estimated $10.9 million versus hypothetical in‑house staffing for the same functions.
Trustee Schmidt moved to adopt the amendment to the FY26 budget; Vice President Wilkes seconded. Trustees discussed the timing risk created by the state’s delayed budget process and the requirement that the district adopt a budget by June 30. The motion to adopt the FY26 amendment carried on roll call with Trustees Baskette, Feaster, Muhammad, Norton, Schmidt, Wilkins and Wilkes voting yes.
The board then considered the FY27 proposed budget; staff said there were no changes to the items from the first briefing. Trustees emphasized the proposal is a working document that will be adjusted as final state funding is known and flagged priorities that included teacher pay and structural cost reductions. Trustee discussion focused on four near-term priorities: (1) contract reviews for major vendors, (2) negotiations and benefits costs, (3) program and potential school consolidation options for structural savings, and (4) preserving targeted investments in staffing and student services.
Trustees voted to approve the FY27 proposed budget by the same roll-call outcome. Board members and staff stressed the work is ongoing: Britton and trustees said the district will monitor cash flow, pursue vendor negotiations and present further adjustments as state revenue decisions become final.
What happens next: administration said it will continue high-priority contract negotiations, examine the largest 100 vendors for savings opportunities, and present follow-up briefings and potential amendments after the state’s funding decisions and as other analyses (personnel, contract indexing) are completed.
