A district is considered to have a deficit fund balance if;

1) Its General Fund balance before reserves is negative, or

2) Other funds have negative fund balances that in total exceed the General Fund balance.

Districts should notify the Michigan Department of Education, State Aid and School Finance Office as soon as they discover a deficit fund balance exists. The notification should be in written form and mailed to: Glenda Rader, Michigan Department of Education, State Aid and School Finance, PO Box 30108, Lansing, MI 48909

Fiscal Year 2007 Deficit District Information

Procedures for Districts with a Deficit Fund Balance

In order to avoid possible interruption in State School Aid funding, a deficit district must attain approval of a Deficit Elimination Plan. Once the plan is approved, Budgetary Control Reports must be submitted for approval on a monthly basis.

Deficit Elimination Plan Approval Procedures

Forms for Districts with a Deficit Fund Balance

School District Plan for Eliminating a Deficit

Monthly Budgetary Report for Deficit Districts