WWPS meeting includes state budget update

WARREN — While per-pupil funding will remain the same, there will be less state funding for mental health resources in public schools for the upcoming school year.

At the July 15 Warren Woods Public Schools Board of Education meeting, Deputy Superintendent of Business Services Neil Cassabon provided a budget presentation titled “Estimated General Fund Impact of K-12 School Aid Budget as Passed by Legislature.”

The presentation laid out the 2024-25 budget configurations for the district, based on the state budget the Legislature recently passed. On July 24, Gov. Gretchen Whitmer signed the 2025 fiscal year budget into law, which becomes effective Oct. 1.

According to Cassabon’s presentation, the foundation allowance — also known as per-pupil funding — will remain the same as it was last year: $9,608. That is the amount districts will receive per student for the 2024-2025 school year. However, there will be a cut per student into the 31aa student mental health and school safety funding.

“That was a surprise to everyone, I believe,” Cassabon said. “It was slashed drastically.”

The 31aa grant funds were designated to offer activities to improve student mental health. Last school year, the district received $230 per student, and will likely only receive $15 per student in the 2024-2025 school year. That means a reduction of $711,412 in 31aa grant funds, including the salaries of two full-time school social workers, 1.2 nurses, the district’s Care Solace mental health access contract and other security measures in the district.

“We have a new challenge to figure out in terms of how we move forward with all of this now,” Cassabon said.

Another impact for Warren Woods Public Schools is the section 20f categorical offset payment. This was funding that was used to offset categorical items that weren’t getting the same increases as other districts. Last year, the district received $14 per student, but will not receive any funding in that category for the 2024-2025 school year, according to the projected budget.

School officials also are keeping their eyes on the Michigan Public School Employees Retirement System. According to Cassabon’s presentation, the state budget has allocated an amount not to exceed $598 million statewide for payments to retirees.

The amount is based on each participating entity’s percentage of the total statewide payroll for all participating entities for the immediately preceding fiscal year. The amount allocated in the projected state budget represents an amount to reduce each participant’s liability from 20.96% to an estimated 15.21% of covered payroll. It is the intent of the Legislature that the remaining funds be used to support student mental health, school safety, the educator workforce, and academic interventions. However, the reduced rate isn’t really a reduction, according to Cassabon.

“The rate wasn’t actually being reduced. We’re going to get money in this one-time budget allocation to offset that rate,” Cassabon said. “It’s not a rate reduction at all. It’s extra funds coming in for this fiscal year to offset the rate. When they start the budget process for next year, unless something else changes between now and then, the rate is still the high rate.”

During the meeting, Board Vice President Paul Zannetti commented on the budget presentation.

“I guess the one thing that’s interesting is that they’re putting funds in MSPERS but then saying you can reallocate it to use in the other. Generally, that’s kind of a no-no, to move money from one, basically, swim lane of your budget authorization and say, ‘Now you can use it over here,’” he said. “It just seems kind of odd they chose that approach versus everything we’ve always been encountering, like you cannot use those dollars over there because they are set for these items. It’s just an interesting observation.”    

Warren Woods Public Schools had an enrollment of 3,093 students for the 2023-2024 school year. It’s too early to confirm enrollment numbers for the upcoming school year.