Dearest reader,
Lady B is back in Fowlerville Community Schools, and today we're following something that doesn't always get the attention it deserves.
DEBT.
Because borrowing money is one thing. Paying it back, with interest, is another.
💰 STEP 5A: DEBT & BORROWING
In Step 5, I examined Fowlerville's audit, General Fund balance, budget projections, and financial transparency.
But there was another number in the district's 2024–25 audited financial statements that deserved its own discussion.
And it's a big one.
💵 $117,730,945
That's approximately $117.7 MILLION in reported bonds and state school borrowing obligations.
Let's break that down. 🔎
🏫 GENERAL OBLIGATION BONDS
$98,359,714
This amount includes outstanding general obligation bonds and associated premiums.
These are obligations the district must repay over time.
🏛� STATE SCHOOL BORROWING
$19,371,231
This amount includes reported borrowing and interest associated with Michigan's School Bond Loan Fund and School Loan Revolving Fund programs.
And this is where things get interesting.
Michigan's school loan programs allow qualifying districts to borrow money to help make debt payments when their debt tax collections are insufficient.
In other words, a district can borrow money to help pay obligations from earlier borrowing.
And those additional loans must eventually be repaid, too.
Now, these programs are established under Michigan law. Using them does not automatically indicate financial mismanagement.
But they do create additional long-term repayment obligations.
📊 WHERE DOES FOWLERVILLE'S REPORTED DEBT SIT?
Of the approximately $117.7 million:
• 83.5% represents general obligation bonds.
• 16.5% represents state school borrowing.
And remember, these are reported obligations, NOT the total amount taxpayers will ultimately pay in future principal and interest.
That distinction matters.
🏠 WHAT ABOUT PROPERTY TAXES?
Fowlerville's audit reports a debt levy of 9.55 mills.
What does that mean for a property owner?
On a property with a taxable value of $100,000:
9.55 mills = $955 annually.
That's $955 toward school debt alone, based on that illustrative taxable value and millage rate.
And taxable value is not necessarily the same as market value.
💬 BUT HERE'S WHAT I REALLY WANT TO KNOW.
How much will Fowlerville taxpayers ultimately repay?
Not simply the outstanding balances reported in the audit.
I'm talking about the remaining principal AND interest.
How much additional interest will accumulate?
How much will the state school loans ultimately cost?
And in what year will the district finally retire these obligations?
Those are important questions, because a $117.7 million reported balance does not tell taxpayers the complete future repayment cost.
📚 NOW, LET'S CONNECT THE BREADCRUMBS.
In Step 1, we learned that Fowlerville's enrollment declined 16.50% over ten years.
In Step 1A, we learned that administrative expenditures increased 31.14%.
In Step 5, we learned that the district's amended 2025–26 budget projected a $1.2 million General Fund deficit.
And now, in Step 5A, we're examining approximately $117.7 million in reported bond and state borrowing obligations.
These figures represent different funds, financial measures, and obligations. They shouldn't be added together or treated as though one caused another.
But together, they help taxpayers understand the district's broader financial picture.
And that brings me to my question.
💬 When school districts ask communities to support long-term borrowing, shouldn't taxpayers be able to easily see the FULL repayment picture, including principal, interest, state loans, and the final payoff year?
I certainly think so.
A bond's original amount is only part of the story.
The repayment schedule matters.
The interest matters.
And the long-term obligations matter.
Because today's borrowing decisions can affect taxpayers for decades.
These figures come from Fowlerville Community Schools' 2024–25 audited financial statements. The complete remaining debt-service cost and final repayment year have not yet been independently established in this review.
No accusations. No assumptions.
Just another chapter in the ledger.
With receipts and respect.
#LadyBudgetdown #FowlervilleCommunitySchools #LivingstonCounty #MichiganSchools #SchoolBonds #SchoolDebt #SchoolFinance #PropertyTaxes #EducationTransparency #TaxpayerAccountability #PublicEducation #FollowTheReceipts