Ferndale board approves budget amendment as state and grant revenue shifts change projections

The Ferndale School Board on Jan. 27 approved the first amendment to the district’s 2024–25 budget after a presentation summarizing revenue and expenditure updates.

The amendment consolidates several shifts: state revenue increased by about $1.2 million overall while certain foundation-allowance and blended FTE adjustments reduced projected state aid relative to earlier assumptions; federal revenue changed modestly; and local grant adjustments produced a net local revenue decrease. The district reported total revenue changes of roughly $1.0 million and total expenditures rising by about $1.2 million in the amendment.

Major expenditure drivers include salary increases tied to recently renegotiated contracts across employee groups, the hiring of additional special-education staff (including two special-ed teachers and related aides at the high school), a rise in security spending and transportation costs, and program changes tied to grant reallocations.

Finance staff said the audited beginning fund balance for 2023–24 was $11.7 million and that the district now projects an ending fund balance of about $9.6 million as of June 30, 2025 — roughly 19% of revenues under the amended budget. Presenters also noted several grants that are concluding or being reduced before next fiscal year, including ARP/SR and several program-specific grants, and flagged upcoming contract expirations for certain employee groups.

Board members described the amendment as fiscally conservative and supportive of staff after contract settlements; the motion passed unanimously. The finance materials and audited financials are posted on the district’s transparency webpage as referenced during the presentation.