Wayland Schools’ budget fund balance smaller

The Wayland Union School budget for fiscal year 2025-26 shows a decline in the fund balance, or savings account.

Leslie Wagner, assistant superintendent for finance and operations, told board members in March 2024 the budget showed a fund balance of slightly more than 21 percent. That figure was determined to be between 7.7 and 7.8 percent in 2015, indicating the fund balance had tripled in nine years.

But times have changed in a little more than a year.

“At this time, our proposed 2025 budget reflects estimated revenues of $39,031,165 and expenditures of $40,496,086, resulting in a projected fund balance of 10.6%.” Wagner said. ”It’s important to emphasize that these figures are preliminary and based on the best information currently available.

When asked about the better than 19% fund balance in 2024, she replied, “You are correct that in recent years, the district’s fund balance has been over 19%. This was largely due to one-time federal Covid relief funding, conservative budgeting practices during uncertain times, and reduced expenditures in areas such as transportation and operations during pandemic-related closures.

“However, as those federal funds have now expired, and with rising costs across multiple areas, including salaries, benefits, transportation and supplies, our expenditures have increased while revenues remain uncertain. Additionally, the lack of a finalized state budget means we are proceeding cautiously with our revenue projections, which is reflected in the preliminary 10.6% fund balance estimate.”

Economic uncertainty has been taking a toll lately, she remarked.

“Maintaining a healthy fund balance is still a priority, but it is also important to use those reserves strategically to support student learning, staff retention and district operations during times of economic transition,” she said. “Once we receive more information from the state and can finalize our budget, we will update the community accordingly.

“Because the State of Michigan has not yet finalized its own budget, we do not yet know the foundation allowance per student, which is a key component in determining our final revenue. As a result, we’ve taken a conservative approach in our assumptions to ensure we remain fiscally responsible and prepared for any outcome once the state budget is adopted.

“We remain committed to maintaining strong financial stewardship while prioritizing student success. Once more definitive information is available from the state, we will revise and update our budget accordingly to reflect actual funding levels.”