Dearborn Public Schools Make Cuts to Balance $170.5 Million Budget

Dearborn Public Schools officials are hoping a combination of teacher retirements, administrative reorganization and funding from the state will be enough to balance the district's budget for fiscal year 2013-2014.

Samuel Barna, business services director for DPS, said the district is forecasting a balanced budget next year of $170.5 million.

"We have a balanced budget, although it was difficult to get there," Barna told the Board of Education at its meeting on June 10.

Faced with the 12th straight year of budget reductions, and this year’s possible shortfall approaching $7 million, the district is expecting to save $4.2 million from 33 teacher retirements, $3.6 million from staff and resource reductions, $400,000 from reduced health care costs, and $200,000 in tuition savings.

In addition, Superintendent Brian Whiston reorganized the management structure of the district resulting in a net savings of $630,000.

"An outside audit showed that our administrative costs are below the average for similar sized districts. Even though we are making additional reductions in order to address serious budgetary issues, this restructuring plan will allow us to operate even more efficiently and continue to provide a high level of service to our students and parents,” Whiston said.

Administrative positions will be pared down by eliminating seven full-time positions and replacing them with three part-time positions. Several different positions, with a variety of titles including associate superintendent, assistant superintendent, director, assistant director, coordinator and supervisor, will be consolidated and streamlined to a new structure that will include executive directors and directors.

“Saving dollars is important but being able to save dollars while continuing to deliver quality service to our schools plays an even bigger factor in making these changes,” Whiston added.

The changes will officially take effect July 1.

Barna said the district is forecasting an increase of roughly 50 students next year, bringing Dearborn's total enrollment to $19,195. The district will receive an additional $30 per pupil (roughly $8,362) from the state's Foundation allowance. Other revenue will come from athletic fees ($125,000), $52 per pupil from the state for meeting its "Best Practices" requirements, and $30 per pupil for performance incentives tied to MEAP scores.

The district is expected to borrow $2.9 million from its fund balance to close out the books for the current fiscal year on June 30. The fund balance will be down to $7.4 million for fiscal year 2013-2014. Barna said the district is not expected to borrow any money from the fund balance next year.

The Dearborn Public Schools Board of Education is expected to vote on the 2013-2014 fiscal year budget at its meeting on June 24.