Ann Arbor schools face layoffs. How did this rich district get here?


A $25 million budget shortfall. A $14 million clerical error. Largescale layoffs. These are the problems suddenly facing Ann Arbor Public Schools (AAPS), one of the richest districts in Michigan.  

School officials shocked the community on March 13 by announcing the need to cut $25 million from next year’s budget. The fund balance (loosely speaking, the district’s savings account, a key indicator of financial health) is projected to drop to 2% by the end of this fiscal year. Last year, the fund balance was only 4%, short of the 15% recommended by finance experts and the 5% required by the state.  

Why is troubling situation only just now coming to light? Part of the problem is a $14 million accounting error that went undiscovered until recently. One-time money from the state toward the pension fund incorrectly counted as revenue masked the fact that the district was on shaky fiscal ground. 



Read More: Ann Arbor schools face layoffs. How did this rich district get here?

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Live News