Birmingham Public Schools Created A $14.3 Million Budget Deficit

Birmingham MI

09 March, 2022

11:24 AM

Description

BIRMINGHAM, MI — Birmingham Public School officials said they mismanaged their budget by $11.6 million, creating a $14.3 million budget shortfall for the 2021-2022 school year. Birmingham school officials entered the school year with a projected $1.6 million budget shortfall, but that number ballooned to $14.6 million after officials said they found discrepancies within its general fund, including underestimating salary, health insurance, payroll tax, retirement and other benefit costs, while overestimating student enrollment numbers. The district's original 2021-2022 budget was slated to bring in $122,471,210, but it was amended to $19,716,575. Moreover, the district was projected to spend $122,602,855, and that was also amended to $134,027,703. Some of the more revealing spending differences included a salary differential of $3.5 million, retirement difference of $3 million difference and health insurance and other benefits by over $1.2 million. Among one of the most notable revenue shortfalls was in property taxes, where the district said it took in $1.2 million less in property taxes. The discrepancy also revealed district officials have been overtaxing property owners in the district, an error that will result in a credit to taxpayers. The district also miscalculated the money it would bring in from the Proposal A Obligation by about $5 million. The measure indicates the minimum per student funding allowance from the state. Patch reached out to Birmingham Public Schools Superintendent Dr. Embekka Roberson for comment regarding the district's budget shortfall and will update this story when and if we hear back. Together, school officials said they were expecting to receive $6 million more in state aid and property taxes than it did, despite school data showing the district lost 186 students between this school year and last. There are currently 7,283 students enrolled in Birmingham Public Schools, a number that has declined from 8,375 students in the 2012-2013 school year, according to school data. School officials said they will keep families, staff, and students updated on this situation in the days ahead. Officials outlined the next steps it plans to take, which revising the budget for a more collaborative approach and working with treasury, the district's auditors, and an attorney to levy a more accurate tax.