Dearest reader,
DeWitt Public Schools is asking voters to approve a $157 MILLION bond this November.
Lady B is currently down that rabbit hole, following the breadcrumbs and breaking down exactly what voters are being asked to approve.
But before we get there, there is something voters should know.
📌 DeWitt has borrowed money for operating cash shortages SIX YEARS IN A ROW.
2021 - $2.4 million
2022 - $1.6 million
2023 - $1.5 million
2024 - $1.5 million
2025 - $1.5 million
2026 - $2 million
Total short-term borrowing issued over those six years:
$10.5 MILLION
Now, these were short-term loans, not $10.5 million of debt still sitting on the books today.
But the reason for the borrowing matters.
In multiple filings with the Michigan Department of Treasury, DeWitt stated that the money was needed to cover operating cash-flow shortfalls or to provide money for school operations.
In other words:
The district didn't have enough cash available at certain points during the year to pay its operating expenses, so it borrowed money and repaid it when anticipated revenue became available.
And this isn't necessarily over.
In DeWitt's 2026 application, the State asked:
"Will a line of credit be necessary in the subsequent fiscal year?"
DeWitt answered:
YES.
📌 Now let's talk about the proposed $157 million bond.
This is completely separate from those operating loans.
If voters approve the bond, DeWitt's own financing plan anticipates that the property taxes it plans to collect for bond debt payments will not always provide enough money to make the full scheduled payments.
So what happens when there's a gap?
The district plans to borrow the difference from the State of Michigan.
DeWitt estimates it will borrow:
$39,415,272
from the State's school bond loan program.
And the estimated interest on that State borrowing?
$53,039,937.
That State borrowing is part of how DeWitt can propose $157 million in new bonds while telling voters the estimated increase over the previous year's debt-tax rate is 0.00 mills.
So let's make this very simple.
DeWitt has borrowed money for operating cash shortages every year since 2021.
It told the State it expects to need another operating line of credit next year.
And its plan for the proposed $157 million bond already anticipates borrowing approximately $39.4 million from the State when the planned property-tax collections aren't enough to make the scheduled bond payments.
Those are TWO DIFFERENT kinds of borrowing.
One helps cover short-term operating cash shortages.
The other would help cover payments on long-term bond debt.
Lady B isn't telling anyone how to vote.
But before taxpayers authorize $157 million in additional borrowing, they deserve to understand the entire financial picture.
And Lady B is just getting started.
With receipts and respect. 🪶
DeWitt Public Schools
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