Finance Committee approves all contracts and other agenda items, including the proposed FY 2024 budget.
Good morning, Detroit! Today, Friday 6/2/23 at 9am, I will be live-tweeting the DPSCD Finance Committee’s meeting on behalf of @DETDocumenters.
media partners: @BridgeDet313 @chalkbeatDET @freep @media_outlier @metrotimes @MichiganRadio @PlanetDetroit @wdet @wxyzdetroit
07:45 AM Jun 2, 2023 CDT
The meeting will be taking place In-Person Meeting:
at the Fisher Building 3011 W. Grand Boulevard, 12th Floor Conference Room Detroit, MI 48202 and online. To join virtually and to view agenda: https://go.boarddocs.com/mi/detroit/Board.nsf/Public
IMPORTANT: If you believe anything in the coverage today is inaccurate, please email us at documenters@outliermedia.org with “Correction Request” in the subject line.
Looks like what we can expect is a Financial Report out and then a review of 19 slated agenda items for review.
And here we go!
Budget summary: Both expenses and revenue was higher but still tracking with budget overall for the year. https://t.co/GEGCS7YEFR
Here is the full Finance Report: https://go.boarddocs.com/mi/detroit/Board.nsf/files/CSDJBN4AF208/$file/April%20Finance%20Committee%20Report.pdf
Discussion ensuing about Food & Bev expenses.
Will be fully staffed next year and more students will eat so that will reduce the surplus. Have invested in new equipment. Surplus has to do with a reduced staffing level this year. There will be higher salaries for food servers.
COVID dollars have gone to after school supplemental programs (mental health included)
Now we are on to Agenda Item 4.1 Budget amendments and adoption of 2024 budget
Capital debt will be used to repay the bonds. If property values continue to increase, DPS will be paid up by 2049.
Much of our budget for DPSCD relies on Federal funding. This chart compares us to other similar districts. General funds are the greatest stressors on the budget. https://t.co/LdN4A9zAWE
As they moved into this year’s budget, had to restructure it without the COVID dollars and adjust for inflation AND adjust for salary increases.
Dr. Vitti is now speaking and being asked a question:
Speaker: A huge driver in budget is that Detroit has had such a population decline and has become more poor as far as property tax. There will be work to create new proposal. Is someone from district involved in these convos?
Speaker to Vitti: What will happen to us when we have to rely on tax collection? State level advocacy should be the focus? Is there a conversation happening to generate more local revenue? Does anything give you pause as we look to 2027.
Announcement at recent policy conference has not resulted in a tangible conversation of how this will impact the district’s funding. Vitti says he does have concerns about 2027 in terms of revenue generation. State aid makes up the difference if we don’t have enough income.
Where will the new revenue come from? Vitti says will have to dig in more to look at how this impacts the district long term. Speaker is encouraging Vitti to go out and find an analytic partner who can do this from the outside to do procurements process. Should be priority.
Vitti: Next year’s budget moves us to a more equitable approach to schools (benefits small AND large schools) and focusing on being responsible about recurring revenue and expenses. Tried to be thoughtful about hourly employees by offering more robust job alternatives.
Vitti is emphasizing teacher salary increases with recurring revenue and expenditures. $458 per student allocation, have to balance according to not having covid cash. Enrollment will probably increase but he’s being conservative about numbers. Increase Pre-K by 300+ students. https://t.co/nRZxJ4Xtdj
They want to focus on increasing number of students in Pre-K across the district.
Speaker: She’s saying she thinks population will continue to decline. To Vitti: If you were faced with the prospect of students leaving each year, what would you do to get in front of that?
Vitti: 1) Lack of money to upgrade facilities means they need to prioritize upgrades in a proactive way 2) Look at smaller type schools. Have given them 6 years to grow in enrollment but he would see if we could get by with fewer schools (high schools, specifically)
They also will focus on giving a strong Pre-K option with certified teachers to young families and need to market it more. If Pre-K is positive for the kid, the family is more likely to stay in school, in the district.
Speaker: If you think about potential funding reform, in light of population decline, do you think there should be more of a buffer at the higher, state level to make operations more manageable?
Vitti says charter schools don’t have at-scale revenue but we have more schools so we can make up for budget hits by zooming out and redistributing funding. Republicans had wanted to help fund charter schools. Democrats might be helpful to figuring out solutions.
Question to Viti: Birthrates are down, what about Pre-K expansion as a longterm revenue strategy? Answer: evaluate more thoroughly at end of 2024. He doesn’t want to get into a situation wherein they are just providing Pre-K to family who might move out of the the district.
Some changes: Not funding Assistant principals unless it’s for high schools. Reduce in paras. Expanding funding for academic interventionists. Lowering class sizes. Fund materials for literacy.
With Literacy lawsuit funding: interventionists, expand summer school, after school tutoring.
Committee member calling for outside agencies to review these funding strategies, for MacKenzie and for Literacy Lawsuit funding. Vitti says yes. For next year, Vitti says there will be site visits to places where there are academic interventionists.
They are now discussing various pilots to the Pre-K expansion that can happen in parallel across the district about the days/time/numbers of students. What is a great investment to increase enrollment?
Now they are talking about after school programs supported by staff and supplemental staff. Generally, after school program, according to Vitti, works when it’s onsite in the school where the kids are. Scale of doing that, tough, is costly.
Some of these challenges, Vitti says, could be address through the Literacy Lawsuit money. Context: https://detroit.chalkbeat.org/2020/6/10/21287272/detroit-lawsuit-ends-without-right-read-precedent
In 2019/2020 school year, they experimented with after school programs and it was difficult to track down funding from parents. Wants to move forward only if it’s fully funded without relying on charging parents. Puts school is place of being like a tax collector.
The cost structure has always been challenging for after school programs but they will keep trying.
Reduction in Federal has to do with COVID funding going away. On State level, they are going to fund districts with high density of high risk students because we have 85% of students considered “at risk” so Detroit could benefit. Local is attributable increasing special ed costs https://t.co/JlD11ZAXWI
Surplus would be used to adjust for inflation of costs or reduction of student numbers. https://t.co/K2kNaRPHQK
Moving on to Action Items. Speaker is very hard to hear. Approving 4.01 and 4.02? Approved for consent agenda for next meeting.
4.03-4.04, 4.06-4.08: Contracts dealing with supplemental staffing services. Considering these as a group. Approved and moved to consent agenda.
4.09-4.10: Supplies. Approving these contracts together. Consent agenda for next board meeting.
4.11-4.12: Facilitites and Master Plan: Approved and moved forward to consent agenda.
4.13-4.15: Approved for Consent agenda.
4:16: Demolition: No formal rejection. Some joking about not loving these items. Move forward to next meeting consent agenda.
4.17: Approved and moved to consent agenda.
4.18-4.19: These are so small, why on agenda? Because they have to do with a lease. Approved. Moved forward.
In room: Public Comment 1: Woman talking about disrespect she experienced during a PTA meeting and did not speak. Felt accused of showing up with a “hidden agenda”. Doesn’t want an apology. Has 4 more years with the district. Contemplated moving students to charter school.
In Room: Woman commending district for event at the Aretha and the recognition the sudents received. Wants Board to recognize students at every meeting to encourage student participation.
In Room: Same speaker: Question about Bethune and infrastructure improvements. Vitti says it needs investment because it becomes a neighborhood school with elimination of another school nearby.
Vitti: Investing in facilities in order to upgrade HVAC system. Core investment in what buildings should have in 2023. We have an early release of kids from schools because the infrastructure is lacking. The only way to fund upgrades is through Master Plan.
Facilities Plan is a 20-year plan to anticipate needs in the future. Concludes public comment.
This officially concludes my coverage of the DPSCD Finance Committee Meeting. For information on upcoming meetings from DPSCD and overall operations of the district and its members, visit: https://www.detroitk12.org/Page/9425#calendar14864/20230602/month