MI school district budgets precarious as feds sit on $160M, state misses deadline
With the state budget still not passed before school budget deadlines and nearly $160 million in federal funding unexpectedly withheld from schools by the Trump administration, this summer has turned unexpectedly chaotic for the state's school leaders, with sudden uncertainty cast over programs that serve some of Michigan's most vulnerable students.
"It is our moral obligation, literally our moral obligation to ensure that we know what the budget will be as soon as possible," said Camille Hibbler, superintendent of Ferndale Public Schools.
School districts' boards under state law must pass their budgets before July 1, when the fiscal year starts. But two variables created by local and state government have bedeviled the process, likely meaning boards will be changing passed budgets later in the year:
State lawmakers failed to meet their own deadline for passing a school aid budget, meaning districts don't know exactly how much funding they'll end up with.
The U.S. Department of Education is withholding billions of dollars from states for school programs meant for vulnerable student populations, including English learners and after-school programs. Michigan's share of money withheld is $160 million, according to the Michigan Department of Education. It's now unclear when states will get that money.
Just one of these surprises could strain a budget process. But both? Superintendents say having both funding sources uncertain could spell trouble.
"It's a guessing game and it's a really awkward position to put the board in, quite honestly," said Andrew Brodie, superintendent of Flat Rock Community Schools in Flat Rock, a Downriver community.
Brodie said school boards and finance offices can try to make educated guesses in setting their budgets, using numbers from the previous school year to approximate how much funding they might have for the upcoming year. Flat Rock is in a fortunate position because it has a fund balance to help make up for any unexpected budget fluctuations, he said.
State lawmakers typically pass at least a school aid budget around July 1 to help give districts a measure of certainty as they plan for the next school year, though they have until October to pass a budget. There's been no indication lawmakers are yet close to an agreement, with House Republicans proposing a school aid budget different than what Gov. Gretchen Whitmer has proposed, with money for private schools, and eliminating universal school meals, a program touted by Whitmer as an accomplishment of her administration.
On the federal side of the budget debacle, the leader of the Michigan Department of Education, schools Superintendent Michael Rice, decried the nearly $160 million withheld from schools in a news release Wednesday, July 2. According to the department, $64 million of the funding withheld was for educator professional development and $37 million was allocated for before- and after-school programs, with $38 million in funds classified for academic enrichment. The remaining funds are for migrant education and English Learner programs.
"Based on past practice, local school districts were rightly counting on this approved funding by July 1 for programs to support migrant education, services for English learners, staff professional development, before- and after-school programs, and academic enrichment," he wrote. Rice added that the department is discussing the issue with "legal counsel" and colleagues around the country.
More: Michigan school district agrees to end seclusion after DOJ probe, Free Press investigation
In Ferndale, Hibbler said the federal government's unexpected choice puts the district in hot water, with grant funding attached to certain positions. It's possible that the district may have to cut certain after-school tutoring programs if the federal money doesn't come through.
"It is very uncomfortable to be able to have a conversation about, 'You might have a job,' " she said. " 'Might' is not OK. Not to mention these are the positions that work with our highest need populations, (such as) special education services. I can't believe we're talking about this."
Both Brodie and Hibbler said the disruptions have collided with what's usually a season for planning for school districts, a time to set a vision for the next school year.
Instead, they are contemplating worst-case scenarios.
"It's unacceptable," Hibbler said.
Contact Lily Altavena: laltavena@freepress.com.
This article originally appeared on Detroit Free Press: Michigan school district budgets precarious as feds withhold money
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