Holland-area districts approve 2022-23 budgets, supported by federal funding
With a stream of federal funding due to the COVID-19 pandemic continuing to flow to schools, financial situations for local districts are in a good spot, at least in the short term.
Federal funding has increased revenues for districts, allowing them to add additional student supports, provide enhanced summer school programming and avoid staffing and program reductions through the pandemic. That will continue through the 2022-23 fiscal year.
Given the one-time nature of the funding, though, district finance directors have cautioned boards that, despite currently positive outlooks, difficult times may loom ahead.
More: Infusion of federal dollars shifts 2021-22 budget picture for local schools
At Holland Public Schools, for example, Director of Finance Scott Powers informed the board that this year’s surplus is due to non-recurring funds.
“While the fund balance is growing, it’s primarily growing because of the federal COVID-related funding,” he said. “The district still does remain in a structural deficit position.”
West Ottawa, while in a strong position financially, is looking toward 2024, when federal funding will decrease, when filling positions to make sure funding will still be available, Assistant Superintendent of Business Services Jeff Malloch said.
Public districts in Michigan are required to pass a budget by the end of June, although two key elements are not clear until later in the year. Districts use projections for enrollments — which aren’t determined until October’s Count Day — and state funding, which also may not be finalized until September, when the state’s budget is due.
Below is a snapshot of end-of-year amendments for the 2021-22 fiscal year and initial budgets for the 2022-23 year at local districts.
West Ottawa
West Ottawa’s final amendment for the 2021-22 fiscal year leaves the district with a $654,000 surplus. The district had $86,905,000 in revenues and $86,251,000 in expenditures. The end fund balance for the year is $20,300,622, 25.36 percent of expenditures.
For the 2022-23 fiscal year, WOPS is assuming a flat enrollment — despite being “cautiously optimistic” for a second straight enrollment increase — and $9,150 per pupil from the state, an increase of $450.
West Ottawa is projecting a balanced budget with $91,800,000 in both revenue and expenditures. With the increased expenditures, the fund balance will drop to 22.26 percent, but remain at the same dollar amount of $20,300,622.
Zeeland
Zeeland is planning for a surplus of just over $500,000 for the 2021-22 fiscal year. The district will have $82,719,331 in revenue and $82,213,250 in expenditures. The surplus brings the ZPS fund balance to $12,942,292, 15.7 percent of expenditures.
The proposed budget for 2022-23 uses a projected enrollment of 6,267 students and a per pupil allowance of $9,250 from the state. Revenues are projected at $85,431,265 with expenditures at $85,195,956.
A surplus of $235,309 brings the district fund balance to $13,177,601, equal to 15.4 percent of expenditures.
Holland
Holland’s final 2021-22 budget will include a $609,400 surplus driven by federal revenues. The total revenue for the year was $47,218,300 with $46,608,900. Holland’s end fund balance is $5,088,366, 10.9 percent of expenditures.
The district is planning another surplus for 2022-23, with $47,627,500 in revenue and $47,170,700 in expenditures. The projected $456,800 surplus will bring the fund balance to $5,545,166, equal to 11.6 percent of expenditures.
Assumptions used in the budget include an enrollment of 2,983 students and a $500 increase in per pupil funding.
Hamilton
Hamilton Community Schools approved its 2021-22 budget amendment and 2022-23 budget June 13. To close the 2021-22 budget, Hamilton will have $37,002,500 in revenues, $37,331,400 in expenditures and a deficit of $328,900. That brings the fund balance to $6,866,339 and 18.39 percent of expenditures.
For the 2022-23 fiscal year, Hamilton is projecting a $435 per pupil increase from the state to $9,135 and a flat enrollment of 2,889 students.
The district projects a small deficit of $46,000 with $37,751,000 in revenue and $37,797,000 in expenses. Hamilton’s end fund balance is projected at $6,820,339 and 18.04 percent.
Saugatuck
Saugatuck will add $259,119 to its fund balance this year, with $11,084,977 in revenues against $10,825,858 in expenditures. The district’s ending fund balance of $1,663,358 (15.36 percent of expenditures) represents the highest since 2013-14 for SPS.
For 2022-23, Saugatuck is projecting $11,134,695 in revenues and $11,091,755 in expenses, resulting in a $42,940 surplus. That would leave the end fund balance at $1,706,298, or 15.38 percent of expenditures.
The district used a projected enrollment of 810 students, which would be down around 30 students from the fall 2021 enrollment.
— Contact reporter Mitchell Boatman at mboatman@hollandsentinel.com. Follow him on Twitter @SentinelMitch.
This article originally appeared on The Holland Sentinel: Federal funding powers positive budgets for Holland-area schools
