Frequently Asked Questions
2024-25 Budget Frequently Asked Questions
-
We will update these FAQs regularly, please check back often.
1. What are the main factors that contributed to our school district’s financial challenges?
Significant budget shortfalls facing our district result from three main historical factors:
-
Our staff has increased by 480 in the last 10 years
-
Our student enrollment has decreased by 1,123 over the last 4 years
-
Increases in operating costs.
2. What is the superintendent’s plan to address our financial challenges?
According to our financial analysis, the district will need to cut approximately $25 million from the 2024-25 operating budget to comply with state and Board of Education requirements. Our team is diligently working to implement stronger protocols and practices for budget reporting so this does not happen again.
3. What steps are being taken to address our declining enrollment?
As part of our action plan, we are launching a comprehensive and aggressive marketing campaign to attract families to our district. We will have updates to share on this effort in the coming weeks.
4.Will administrators and school district leadership share in the sacrifice?
Yes. We have announced an immediate hiring freeze, and administrators will be among the first staff reductions, pending board approval.
5. Why are cuts at the building level needed? Why can’t we just cut executive-level employees?
All our decisions are being made to minimize the impact on students, learning, and classrooms. While there will be reductions and cuts to school administration, the magnitude of our current financial situation will cause staff reductions across the board.
6.What is the risk of Ann Arbor becoming a deficit district requiring state intervention?
Our interim superintendent, Jazz Parks, has said she will do everything in her power to prevent this from happening, including making tough decisions to bring our finances in line. Interim superintendent Parks has announced several short- and long-term steps to turn around our district’s finances and move forward.
7. How will the superintendent be keeping families, staff and teachers updated on this situation?
District leaders are committed to providing information in the coming days and weeks about opportunities to share community feedback, ideas, and input, which we will use to inform our next steps.
8. Will my student’s class size increase?
Every decision we make is intended to minimize the impact on student learning, achievement, and success. We do not believe that these necessary staff reductions will necessitate significant increases in class sizes in many circumstances.
9. How will staff reductions be determined, and will AAPS offer buyouts or early retirements?
The process for staff reductions is laid out in our board policy and administrative guidelines, and all decisions regarding staff reductions in the event of financial challenges will be made consistent with our current school policy.
10. Can the $1 billion bond be used to supplement the general fund?
No. State law prohibits the use of bond proceeds to fund general operations, including school employees.
11. Why don’t you sell the building on Earhart?
Proceeds from a potential property sale that was purchased using bond funds would be required to be returned to the bond fund and cannot be used to fund operations.
12. Are there cost savings if you brought transportation, custodial, and food service back in-house?
Our initial analysis shows bringing these services back inside the district would cause higher costs, not savings.
13. To protect classrooms and teachers, can you cut the Recreation & Education Department?
Interim superintendent Jazz Parks has ordered a top-to-bottom review of school finances and has asked every department to identify cost-saving opportunities. The Recreation & Education Department is separate and self-funded and reducing it would have no impact on the general fund.
14. What does a resolution authorizing staff reductions mean? How many reductions are expected and when will they occur?
Our Board of Education has approved a resolution authorizing staff reductions to achieve needed cost savings. This action allows notices to be released to impacted staff. The number of reductions has not yet been determined.
The process for staff reductions is laid out in our board policy and administrative guidelines, and all decisions regarding staff reductions in the event of financial challenges will be made consistent with our current school policy.
Staff reductions will be effective for the 2024-25 school year, not the current academic year.
15. Ann Arbor has one of the largest tax bases in the state, so why are we facing this budget challenge instead of just raising taxes?
The state’s funding model for K-12 education prohibits AAPS from requesting additional taxes for operations. When locally collected revenues go up, the amount AAPS receives from the state falls by the same amount. Per pupil funding from the state includes both state dollars and local taxes.
16. Will budget cuts disproportionately affect Title 1 Buildings?
No. Grant dollars fund many of our intervention strategies, including student supports such as math tutors and literacy coaches – these are not covered by the general fund.
17. What impact will be felt in Special Education funding?
Our special education services will not experience any changes as a result of our cost-saving efforts. That’s because each of our special education students has an Individualized Education Program (IEP) and AAPS is required to provide such services. Most special education expenditures are covered or reimbursed by a few revenue streams, including federal dollars, state funding and the Washtenaw County Special Education Millage. If fewer students need such services, reductions would be made accordingly.
18. We contract out for busing, custodial and food service. Can there be savings obtained in these contracts?
Yes. In an effort to reduce costs, AAPS is negotiating with custodial contractor ABM, Durham Transportation Services and Chartwells Food Service. While we are looking to reduce costs with our food service providers, funding for our students’ meals comes from the state and the USDA.
19. What is the difference between General Fund and Bond?
The 2019 Bond fund, which received incredible support from our community, is limited to new buildings and renovations to existing buildings. Bond funds are prohibited from being used for the school district’s general fund operating budget.
20. Why has AAPS not returned Before/After Care options in all schools?
This year, the after-school care program expanded to two additional elementary buildings, and more will be added at the start of the 2024-2025 school year. While we are seeing a lower demand for before-school care, we are working diligently to expand before- and after-school care to more buildings across our district.
21. What is included in the operating budget?
A majority of our district's operating budget (81%) covers salaries and benefits for our employees. The remainder goes toward paying for contracts (10%) for a range of services including transportation, substitute teachers and custodial work. Utilities and supplies (9%) are the smallest portion of our operating budget.
22. Will AAPS offer early retirement buyouts?
No. The district does not have the resources to fund early retirement buyouts.
23. Are specific schools being targeted for elimination or reductions?
We continue to take a comprehensive approach, reviewing a wide range of data points, as we consider cost-saving measures that have a minimal impact on student learning, achievement and success.
-