Dearborn Heights D7 board adopts amended 2025–26 budget and approves $7 million short-term loan to bridge cash flow

The Dearborn Heights School District #7 board on March 4 approved an amended 2025–26 budget and authorized a short-term $7 million borrowing to meet cash-flow needs ahead of the state aid note program that opens Aug. 20.

Dr. Getser, addressing the board during the superintendent’s report, said the district faces “major budget issues” caused by expiring federal ESSER funds, higher retirement costs passed through by the state and lower-than-expected student enrollment. “We are presenting an amended budget this evening,” he said.

Mark, the district budget presenter, told trustees the amended revenue estimate for 2025–26 is $38,890,574 versus earlier projections, and that current expenditure expectations are about $45,105,617, producing a multi-million-dollar variance and reducing fund equity. He said enrollment declined by roughly 140 students compared with last year (approaching a near-200 FTE difference versus projections), which the district estimates contributed about $1.5 million of the revenue shortfall.

Board members questioned where the remainder of the shortfall came from. Mark cited a late state budget resolution that reduced what the district had budgeted for Section 31A at‑risk funding and lower-than-expected federal and state grant awards (Perkins, Title grants and others) as additional factors. He also identified higher-than-anticipated legal fees that increased the board’s professional services line.

To bridge the gap and avoid a cash crunch before the state aid note borrowing window, the board voted to authorize a short-term note to be sold on the open market, to be repaid with the district’s state aid borrowing on Aug. 20. Maria, who explained the cash‑flow timing and market process, said the district aims to put the note out to bid and close by the end of March.

Public comment reflected staff concern about transparency and personnel impacts. Jennifer Fein, a high school English teacher, asked when detailed budget documents would be made available to staff and raised worries about potential layoffs and the ability to retain younger teachers. "We are very concerned ... we'd like to be informed," she said in the public comment period.

Votes at a glance: the board moved and adopted the 2025–26 amended budget as presented and then passed the resolution to authorize a short-term loan of $7 million through Aug. 20, 2026; both measures were approved by roll call with affirmative votes by the trustees present. The board also approved several revised board policies by roll call in the same meeting.

What happens next: district leadership said it will pursue the market note to close by the end of March and expects to repay it with the state aid note in August. Finance committee members discussed holding more frequent meetings to monitor the situation and bring monthly updates to the full board.

The board did not announce specific layoffs or program eliminations during the meeting; trustees and staff said further budget work is underway and that the district will communicate updates to employees once decisions are finalized.