A report into how and why the Ann Arbor School District had to cut $25 million from its current budget and how its Fund Balance dropped below 2% has plenty of blame to spread around.
Despite a falling student population, the Ann Arbor School District continued to increase payroll. And that led to the financial problems that could have been avoided. That’s the conclusion of a report by consulting firm Plante Moran.
Partner Michelle McHale says, in 2023, the district agreed to pay increases for employees, but it wasn’t reflected in the budget and the school board failed to ask about it. She called the failure to adjust the budget “illogical.”
“It would have been prudent for the board to have questioned management the minimal change in the expenses that after the recently approved wage increases.”
Board President Torchio Feaster says he expects changes will be made by the administration and the school board to make sure such a thing never happens again.
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