Dear Ann Arbor Public Schools Community,
I hope you are having a restful and enjoyable summer. I wanted to share an update from last week’s board meeting, which included the release of the third-party financial review by Plante Moran and passage of the 2024-25 district budget. These important actions will help the district continue to move towards financial stability so we can continue providing an excellent education to all AAPS students.
Plante Moran Review
At last week’s meeting, financial experts from Plante Moran presented their findings from their independent, third-party review. This review was authorized as soon as the district’s budget challenges were uncovered to ensure all future decisions proceeded from a solid understanding of what occurred. This review was necessary to provide our community with a full accounting of how we arrived here so we can address what occurred and take steps to ensure it never happens again.
At last week’s meeting, Plante Moran confirmed the process the district used in crafting its budget was reasonable and sound. They confirmed what we have shared from the beginning, the budget situation stems from three historical factors: increased staff, fewer students, and higher operating costs. You can review the full Plante Moran report here. The report also showed that the item often inaccurately referred to as a “$14 million accounting error” was not an accounting error but instead a recording error that was carried over from the prior year's budget. It was confirmed that this recording error had no impact on the district’s budget shortfall or its fund balance. You can read their findings here.
2024-25 Budget
Passage of the 2024-2025 budget last week by the board of education brings our finances in line and places our district on a sustainable fiscal path so we can move beyond state oversight and reporting requirements while maintaining a healthy fund balance.
The total approved budget is $307 million, which would leave us with a 5% fund balance. These numbers – as they are with every school budget - are based on reasonable assumptions for enrollment and for state revenues.
Given some of these are details on assumptions are still unknown at this time, we will be prepared to make the necessary adjustments once these details become clear.
We are fortunate to have supportive families, engaged staff and talented students. Now, with the Plante Moran review completed and our 2024-2025 budget passed, we are well positioned to continue building on Ann Arbor Public Schools culture of excellence.
Thank you,
Jazz Parks
Superintendent
