Listening to our Broncho Community in our Plans for the Future
We would like to sincerely thank our community for taking the time to learn about and participate in the November 3 election. We also thank you for taking our recent post-election survey so that we can gather additional feedback on the proposed projects, community priorities, and financial considerations that will help guide our next steps. We recognize the importance of listening, learning, and adjusting our approach moving forward.
Your feedback will help us evaluate which projects should receive the greatest consideration, where adjustments can be made, and how we might reduce the overall scope and potential tax impact of a future bond proposal.
Please take a moment to review the following information. During the recent election, we heard questions about school funding, district spending, and why school districts seek voter approval for major facility improvements. We welcome all questions and believe it is important for our community to understand how Michigan's public school funding system works.
Where does Holly Area Schools receive funding from?
- Holly Area Schools receives a combination of state aid, federal grants, and local tax revenue to support its general fund expenses:
- daily school operations
- educational programs
- student services
- employee compensation
Does every Michigan school district receive the same per-pupil funding?
- No. Due in part to Michigan's school funding structure established through Proposal A in 1994, some school districts continue to receive more per student than others.
- Approximately one-third of Oakland County school districts have a higher statutory foundation allowance than Holly Area Schools. As a result, some neighboring districts serving a similar number of students receive millions of dollars more annually in foundation allowance funding.
- These differences create financial challenges as districts work to provide competitive compensation, quality educational programming, and essential student services.
How do general operating funds and school bond funds serve different purposes?
- General Funds: Supports teachers and staff, educational programming, student services, supplies, utilities, daily operations, and routine facility maintenance.
- Bond Funds: Support voter-authorized capital improvements, such as school renovations, major infrastructure replacement, safety and security improvements, building additions, site improvements, and eligible instructional equipment and technology.
- Under Michigan law, School Bond Funds cannot be used to pay employee salaries or benefits, daily operating expenses, textbooks, or routine maintenance.
Michigan does not provide school districts with a dedicated, comprehensive funding source sufficient to cover all major facility replacements and improvements. Therefore, districts seek voter authorization to issue bonds for substantial capital investments.
Voter-approved bond proposals can help preserve general fund resources by financing eligible major capital improvements that might otherwise require general funds to cover the costs, thus allowing the district to better protect resources for instruction, student services, and staff while addressing aging infrastructure.
Our Commitment to Staff and Responsible Financial Management
We take great pride in our record of accountability, transparency, and responsible financial stewardship. We also welcome questions about our budget, school funding, and the district's financial decisions. We encourage residents to contact us directly whenever they would like additional information or clarification.
We also recognize that our Broncho community places a high priority on attracting and retaining outstanding teachers and support staff. Our dedicated educators and staff members are the foundation of Holly Area Schools' success.
Over the past two years, we have successfully negotiated collective bargaining agreements with all of our employee groups, reflecting our continued commitment to competitive compensation, employee retention, and attracting talented professionals to serve our students.
These agreements have strengthened our competitive position within the region and represent an important investment in the people who make a difference for our students every day.
We also remain committed to directing resources where they matter most — supporting student learning and achievement. More than 60% of our total general fund budget supports direct instruction and student services.
- Based on Michigan Department of Education financial data,
- Holly Area Schools ranks among the top quartile of districts statewide for the proportion of general fund expenditures dedicated to instruction.
- Holly Area Schools spends less than 5% of its total budget on district administration and ranks in the bottom quartile for general fund expenditures on all school and district administration, reflecting our ongoing efforts to operate efficiently and prioritize classroom resources.
Our commitment to fiscal responsibility is further demonstrated by our most recent independent financial audit. In October, Holly Area Schools announced another clean financial audit, with no findings or material audit adjustments. Over the past decade, our district has made significant progress in strengthening its financial position, managing long-term obligations, and protecting taxpayer resources.
These efforts have contributed to the district earning an A+ underlying credit rating and an AA enhanced long-term rating from S&P Global Ratings, reflecting our strong financial management and operating performance.
We encourage community members to review our recent press release, Holly Area Schools Marks Another Year With a Clean Audit and Continued Strong Fiscal Stewardship, for additional information.
Looking Ahead: Revisiting Our Long-Term Facilities Master Plan
We recognize the financial challenges many households continue to experience. Rising costs and economic uncertainty have recently affected families throughout our community, and we understand that any potential tax impact deserves thoughtful consideration.
Over the past decade, our district has taken a measured, intentional approach to facility improvements, strategically addressing needs in phases while working to manage the long-term financial impact on taxpayers.
As we consider our next steps, we are reviewing the proposed projects from the Holly Safety, Security, and School Improvement Bond to prioritize the most critical needs and explore opportunities to lower the proposed tax levy. We are reviewing feedback from our community to better understand the projects residents consider most important and the financial considerations that should guide future planning.
Moving Forward, Together
At Holly Area Schools, we believe that strong schools and strong communities are built through collaboration, open communication, and shared responsibility. Our commitment to student safety, responsible facility management, educational opportunities, and fiscal accountability remains the same.
Thank you for your continued support of Holly Area Schools, your investment in our students, and your willingness to share your perspective. Together, we will continue working toward a strong future for all Bronchos.
Sincerely,
Scott M. Roper, Superintendent
Holly Area Schools
Listening to our Broncho Community in our Plans for the Future