Michigan school district 'shocked' over budget defecit

I look into what is happening at the Wayne-Westland school district

WESTLAND, Mich-   The Wayne/Westland, Michigan School District just realized they are in debt and are now facing major financial issues.

The district released the following statement:

Over the summer we learned about significant issues related to our district finances. As a result, our Interim Finance Director took a complete look at the finances. Last week, the annual fiscal audit was completed and presented to the Finance Committee and then last night at the Board of Education meeting. Our board was advised and will be engaged in a decision making process to respond to our current financial reality.

The audit uncovered that what we believed to be a surplus was actually a budgetary shortfall. This will require the board and the district to make hard decisions.

We understand that these difficult decisions will impact all staff. During this time we are committed to ongoing and accurate communication as we strive to make any necessary transitions as smooth as possible.

Wayne-Westland remains committed to educational excellence in all that we do. We will work to ensure that the current challenges are not repeated and that a positive path forward is identified and pursued.

The question taxpayers want to know is how a school district goes from having a budget surplus to being in the hole. That is a question the district was now able to completely answer.

The district released the following statement:

Over the summer we learned about significant budgeting issues related to our district finances. Following the annual fiscal audit by Plante Moran we discovered that instead of a budget surplus we currently have a budget shortfall. We need to make appropriate cuts in the budget to ensure we continue to provide students an education of excellence.

Per state law school districts must have a fund balance of at least five percent. If the fund balance falls below five percent, school districts risk a state takeover.

So, why weren't these issues detected earlier? The district blamed COVID.

The complexity of the budgeting process and the influx of COVID-19 funds have increased the time it takes to both create and review budgets. While no misconduct occurred, the district was able to identify the discrepancies in the audit preparation process and immediately began an investigation.

I have reached out to the school district Superintendent John Dignan and am waiting for a response.

Taxpayers are furious about this news. The following are some of the comments on social media:

"Considering how much taxes are and how they keep raising them, Westland is very sub par in general.. This is just another blatant example of the deep corruption," said Colten Nissan on Facebook.

John Weibel on Facebook released the following statement, "Why should administrators need lessons? This is basic stuff. Act like your budget is your household budget. And stop making mistakes like this. Or are they in the practice of writing checks without balancing the ledger - DAILY. Not once a year. Of course "they" won't feel the bite for their incompetence. They will look to get bailed out by the State, or the Feds. And then ask us to trust them with MORE of our tax dollars via a new millage proposal... for the kids."

According to the Mackinac Center for Public Policy the Wayne/Westland Superintendent is paid a total of $242,159. The superintendent gets 12 sick days and 28 vacation days.  Click here to learn more.

I will be on top of this story and let you know when I learn more.

All of this comes as a self-described teacher was transferred from John Glenn to Wayne High.

Students and parents spoke at a school board meeting protesting English teacher Dave Daly's transfer.

Shortly after the teacher was moved it was revealed the school district was facing a surprise budget shortfall.

I will stay on top of this story and bring you the very latest as I get more.