Financial advisors recommend Ann Arbor Public Schools has enough dollars in its Fund Balance to cover two months of operating costs. Currently, it has four days worth. The budget presented to the School Board on Wednesday focuses on rectifying part of that shortfall.
The $318 million spending plan includes the reductions made through layoffs, including the 56 teachers who were given their pink slips last week. It decreases wages and benefits by $13.2 million.
The current Fund Balance of $4.8 million is about 1.5% of revenue. The new budget will bring that number to above 5% desired by the state.
Board President Torchio Feaster says he wants to see a bigger cushion but is happy to reach the 5% level.
“That has been my goal this whole time, and I am sad that we had to make reductions to get there. But I am thankful that we’re going to put this district back on solid footing and be able to move forward with a healthy budget moving forward.”
The School Board is expected to approve the budget at its next meeting on June 26th.
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