BIRMINGHAM PUBLIC SCHOOLS: THERE'S MORE TO THE GENERAL FUND STORY 🪶
Lady Budgetdown recently showed that Birmingham Public Schools has reported three consecutive General Fund deficits.
But after spending some more time in the district's audited financial statements, there is another layer worth understanding.
In 2024–25, Birmingham's General Fund reported:
Revenue: $147.52 million
Expenditures: $152.16 million
Before transfers from other district funds, expenditures exceeded revenues by approximately:
$4.64 million
The General Fund then received approximately $2.51 million in transfers from other district funds, reducing the final reported decline in General Fund balance to approximately:
$2.13 million
Where did the $2.51 million come from?
🪶 $922,183 — Autistic Center Fund
🪶 $721,485 — Community Education
🪶 $414,450 — High School Stadium Fund upon closure
🪶 $411,210 — Capital Equipment Fund upon closure
🪶 $42,164 — Cafeteria Fund for indirect costs
A very important distinction:
These transfers are disclosed in Birmingham's audited financial statements. Lady Budgetdown is not suggesting they were hidden or improper.
In fact, the audit explains that the Autistic Center transfer represented fund balance above the minimum required under the center-program agreement.
But the transfers raise a different fiscal question:
How much of Birmingham's General Fund position is being supported by money generated or accumulated elsewhere in the district?
And that question becomes particularly interesting when we look at Early Childhood.
Birmingham's 2024–25 audit reports that the Early Childhood Fund ended the year with a $620,042 deficit fund balance.
The General Fund was also carrying $531,142 due from the Early Childhood Fund.
The audit says management's goal is to make the program self-sustaining by 2028.
For 2025–26, Birmingham budgeted approximately:
$1.49 million in Early Childhood revenue
$1.61 million in expenditures
Another projected operating shortfall of roughly $120,000, with the fund projected to finish approximately $801,000 in deficit.
At the same time, Birmingham is moving forward with plans to renovate and expand Midvale Early Childhood Center to provide additional preschool capacity.
There appears to be legitimate demand for additional space.
So Lady Budgetdown isn't asking whether Early Childhood should exist or whether families value the program.
We're asking about the math.
🪶 How many additional students will the expansion serve?
🪶 How much additional tuition, state funding and other revenue will those students generate?
🪶 What additional staffing, utilities, maintenance and other recurring costs come with the expansion?
🪶 At what enrollment does the expanded program break even?
🪶 What is the financial path from today's deficit to the district's stated goal of self-sustainability by 2028?
And one more:
🪶 As Birmingham considers additional capital investment, what does its General Fund look like without recurring transfers from other district funds?
There may be perfectly reasonable answers.
Lady Budgetdown simply hasn't found all of them in the publicly available records yet.
Capital dollars can build and renovate facilities.
Operating dollars have to keep them running.
Understanding Birmingham's financial position means looking at both sides of the ledger, including what happens before the transfers.
No accusations. No conclusions.
Just the numbers, and the questions they raise.
With receipts and respect. 🪶
Data compiled and reviewed by Lady Budgetdown using publicly available Birmingham Public Schools audited financial statements, budgets and facility records.