News Photo by Steve Schulwitz Alpena High School is pictured in this July 2022 News photo.

ALPENA — Most school districts in Northeast Michigan project to end the next fiscal year with increased savings when their 2022-23 budgets expire on June 30 of next year.

Of the seven districts in the area, only two project budget shortfalls, while the rest anticipate adding to their savings.

The new fiscal year begins Friday and, combined, the school districts project to bring in about $83 million in revenue — much of it from the state government — and only spend about $82.4 million, leaving a combined surplus of about $600,000, according to information provided by those districts.

Even with a projected surplus, officials in several districts indicated they budgeted conservatively as they wait for more information about state funding for the coming year.

Alpena Public Schools — which anticipates revenues of about $47.1 million and expenses in the neighborhood of $46.7 million — could end the upcoming fiscal year about $323,876 in the black. Projections show the district will have nearly $9.8 million in savings.

Superintendent Dave Rabbideau said the district’s finances are stronger than they were only a few years ago when it struggled to overcome budget shortfalls. Now, he said, the Board of Education, and the investment the government has made in education has helped.

Rabbideau said it is still important to be prudent with the tax money because rising costs and unknowns about future state funding could hinder future budgets.

“The district is financially healthy and is because of the stewardship of the board and our Associate Superintendent for Business and Operations Mary Lyon,” Rabbideau said. “We still have financial concerns like everybody else. Sure, we received a lot of government assistance, but I’m not sure how long the government can sustain that. I don’t see it being sustainable, but we are looking out year ahead and working on a plan.”

Rabbideau said the Board of Education also made some minor moves with regard to high school athletics. He said the district will no longer require each team to raise $400 to help cover the cost of their seasons and will continue to pay for transportation.

However, Rabbideau said, tickets to sporting events will increase by $1 to help offset some of the rising costs.

Posen Consolidated School District, Atlanta Community Schools, Hillman Community Schools, and Onaway Area Schools all project to spend less than they bring in on the revenue side of the budget. Each of the districts has significant savings, which could increase at the end of the next budget year — if they end the year in the black.

Posen Consolidated School District estimates it will have about $469,411 in savings when the new budget year begins. Atlanta Community Schools projects about $823,000 in savings by June 2023. Hillman Community Schools’ savings projects to be about $1.5 million and Onaway Area Schools projects savings of around $700,000.

Only Alcona Community Schools and Rogers City Area Schools anticipate falling slightly into the red. But, it is possible after revenue and costs become clearer, later in the year that budget adjustments can be made.

Alcona Community Schools projects its $9.9 million in revenues will fall short of the projected $10.2 million in expenses.

Alcona Superintendent Dan O’Connor said the Board of Education crafted its budget to account for some financial unknowns on the revenue side of the ledger, and, he said expenses are a touch higher because the district intends to purchase a new school bus for $125,000.

O’Connor said when more is known about how much the district will get from the state, budget amendments can be made to reduce the budget shortfall.

“It is a really conservative budget,” O’Connor said. “Without really knowing what the per pupil payment from the state will be, and what our headcount is, we budgeted conservative. It is our goal though to make up the deficit during the course of the fiscal year.”

Alcona Community Schools projects it will have about $900,000 in savings by June 2023.

Rogers City Area Schools projects a minor revenue shortfall of only $35,888, but has nearly $800,000 in savings.

Last year, Gov. Gretchen Whitmer signed a $17.1 billion school aid budget and has proposed $18.4 billion in the state’s 2023 school aid budget. The state’s fiscal year begins Oct. 1, but it must be signed into law by Whitmer by Sept. 30.