In many ways, the presentation of the Ann Arbor school district’s first quarter financial report was a scene setter for what’s to come.
That’s because big changes in the revenue the district is getting and the cuts in expenses the district is going to be making won’t start showing up until next quarter at the earliest.
The district’s finance team spent about a half an hour Tuesday afternoon briefing a school board committee on the district’s first-quarter finances.
The full board will be asked its next meeting to amend the budget for this school year to reduce the revenue side by slightly over $3,000,000 and increase the expense side by $10,000.
The big chunk of the change on the revenue side is nearly $2.7 million in lost revenue from a $165 cut in per-pupil state aid. There’s also a $350,000 cut in investment income.The revenue reduction is just the first of a total of three big negative changes coming to the district’s budget.
The other two? A $233 cut in what’s called 20J per-pupil funding from the state and another $127 per-pupil cut in state aid.
The district hasn’t seen any checks yet from the state with the latter two cuts. Those are expected to be seen in the December, Robert Allen, the district’s deputy superintendent for operations, said.
There’s going to be similar cuts in the expense side once all the cuts are in, school officials said.
District administrators and the school board will gather on Dec. 3 to talk about what those cuts for this school year will be, Superintendent Todd Roberts said.
The $10,000 increase in expenses this school year is related to professional development expenses, Allen said.
The moves, if adopted by the school board, will make the district’s budgeted revenue for the year $188,940,000 and budgeted expenses of $191,964,560.
David Jesse covers K-12 education for Ann Arbor.com. He can be reached at davidjesse@annarbor.com or at 734-623-2534.
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