Deficit District Information and Required Forms

A district is considered to have a deficit fund balance if it has adopted a deficit budget or incurred an operating deficit as evidenced by the following;

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 or Jeff Kolb, Michigan Department of Education, State Aid and School Finance, PO Box 30008, Lansing, MI 48909

MDE Deficit District Requirements 

Fiscal Year 2011 Deficit District Information 

Reports to Legislature As Required under MCL 388.1702(1)

December 6, 2012 Quarterly Report 

February 26, 2013 Quarterly Report 

Forms for Districts with a Deficit Fund Balance 

In order to avoid possible interruption in State School Aid funding, a deficit district must obtain Michigan Department of Education approval of a Deficit Elimination Plan.  The plan is an excel spreadsheet composed of multiple separate worksheets.  The first worksheet is an instruction flowchart that will lead the user through the process of completing the plan.  Once the plan is approved, Budgetary Control Reports must be submitted for approval on a monthly basis.  The Budgetary Control Report is the final tab of the spreadsheet, marked "Month1Summary".  The user can add a new copy of that worksheet for each month the district is required to file a Budgetary Control Report.

School District Plan for Eliminating a Deficit 

Section 102 of the State School Aid Act (MCL 388.1702) states that a deficit is to be eliminated "not later than the end of the second school fiscal year after the deficit was incurred."  However, it also grants the superintendent of public instruction the authority to extend this time period if the district is unable to comply.  If you would like to use this form to extend your Deficit Elimination Plan beyond 2 years, please submit a written request that states the extenuating circumstances that cause the district to require additional time.  The request should be addressed to Glenda Rader or Jeff Kolb, Michigan Department of Education, State Aid and School Finance, PO Box 30008, Lansing, MI 48909.  Please be aware that plans that extend beyond two years are subject to increased scrutiny by the department. 

School District Plan for Eliminating a Deficit (extended schedule)