SCHOOL BUSINESS INTERVIEW DIRECTOR OF FINANCE 1

School Business Interview Director of Finance

Elizabeth Tallent
Oakland University Education Specialist Program
EA8840 School Business Management
Dr. C. Suzanne Klein
March 2, 2020
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Speaking with Karen Hildebrandt, Director of Finance of Bloomfield Hills Schools,

about district finances was enlightening. Classroom teachers seldom delve into finances much

past purchasing classroom materials, writing a grant or two for supplies, filling out purchase

orders, or asking families to donate Kleenex and needed classroom necessities. Therefore,

interviewing the Director of Finance was a daunting task, like learning basic chemistry from a

rocket scientist.

The overall feeling of the interview was, more or less, about how Bloomfield is

sustaining financial stability while upholding high educational standards with what Hildebrandt

states, has become an antiquated funding system. Since 1995 to the present, the cost per pupil in

Bloomfield has only increased a few thousand dollars. The pre Proposition A per pupil monies in

the mid-nineties were about $10,000 per student, whereas now under Proposition A, per pupil

amounts are about $12,000 per student today. Proposition A was supposed to close the per pupil

funding gap across districts in Michigan, when in reality it harnesses all districts with deficient

funding per pupil amounts and forces them to make cuts across the district in the vein of

streamlining budget spending. These cuts represent some of the six habits mentioned in the

Mackinac Center Report, two of which include outsourcing periphery jobs, like janitorial staff

and bus drivers, and consolidating the front office (central office).

Yet, the cost to educate students has increased a great deal more than the amount set to

cover student needs in all aspects of education. According to Karen Hildebrandt, many of

Bloomfield’s buildings are more than 50 years old, built in 1967, and need upgrading. “It’s time

to upgrade our buildings and reorganize our schools, it’s time,” said Hildebrandt. The district

needs to redesign their schools to represent student needs and the current populations.
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Bloomfield Hills Schools are asking residents to consider a $200 million dollar bond on

May 5, 2020 [ CITATION Blo20 \l 1033 ]. These monies will go toward repair of current

structures and the building of new schools that best represent the current student population and

best practices in teaching. This aligns with Bloomfield’s strategic goal to make school a safe and

secure space with state of the art learning centers that provide access to technology and

materials. The new configuration will include two middle schools (currently there are three), four

K-5 schools, and two pre-schools projected to finish by 2026. “Every learner - today and

tomorrow - deserves our best. Every learner deserves barrier-free environments, opportunities

and experiences that ignite passion, and a place in which to belong and thrive,” [ CITATION

Blo20 \l 1033 ]. The 2018-2019 final budget for Bloomfield Hill schools was $92,257.19 with a

fund balance of 19,244,683. The final mid-year 2019-2020 budget was $93, 958,197 with a

current fund balance of $21,096,771. With expenditures, at the end of 2020 Bloomfield’s fund

balance will be from $500,000 to $800,000 in the black.

At present, looking at projections Bloomfield Hills Schools have “broke even” according

to Karen Hildebrandt. “We track any unspent amounts and consider them ‘suspended carryover’

in case a budget owner was saving it (…strategically not spending every dollar) for a non-

recurring, one-time cost,” said Hildebrandt. Bloomfield also sources out some of their janitorial

workers per the suggestions from the Mackinac Center. Hildebrandt also reports that they are

self-insured for medical benefits, their bond debt is low, and the business staff will shrink from

eight staff down to 5-5.5 FTE. Changes in administration boost higher efficiency and

productivity, which in turn, makes a smooth transition when losing the additional personal

through attrition. All cost saving budget reductions are in line with the Mackinaw Center

recommendations.
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Instruction is a top priority of which Bloomfield relies on their grant funding. Last year

Bloomfield spent $300,000 on a new upper elementary to middle school math program. These

monies are not spent lightly; committees meet and pilot programs test the materials. Professional

development time is established and teachers learn about the materials. This aligns with

Bloomfield’s second strategic goals to provide all students with what they need to reach their full

potential. Much of the budget spending decisions are made in collaboration with a business

office team, human resources personnel, and the cabinet team (superintendent and staff of about

39 people). “We do have an AAA Moody rating. However, the deficit spending is quickly

eroding our fund balance savings,” said Karen Hildebrandt. A significant amount of the funds

come from the additional mills Bloomfield can levy on their residents as part of the hold

harmless allowance through Proposition A (they just renewed their ten-year millage two years

ago). Of course, they have the 18 mills non-homestead on residents and, in addition, now the

new bond proposal to update their infrastructure. We will see if residents approve the proposed

bond.

Throughout the many links and lines of budgets and funding, pie charts, and this

interview, funding a district is a massive challenge undertaken by many groups, committees, and

individuals. This aligns with the district’s third strategic goal to establish a culture of trust by

empowering the voices of all employees. It is difficult to express everything that is involved in

this process, but after my conversation with Karen, and reading through the literature she sent, I

have a better understanding of the allocation of the budget.

It is important for the budget to include all the programs, activities, and opportunities it

has to offer Bloomfield Hill’s students. From texts book, to technology, and the nature center,

Bloomfield offers students many avenues in which to grow and learn. As for recommendations
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to the budget to improve teaching and learning, it is important to point out that these programs

are great on the outset and many of the new curriculums have a wealth of ideas and innovations.

Yet, there needs to be follow-up training and coaching in the classroom from experts who know

the many advantages that the technology or materials provide. There should be provisions in the

budget to account for teacher time out of the classroom, consistent and continued training and

improvements on districts programs and materials, in order for the teaching staff and students to

get the most out of curriculums and programs implemented in each department. The proposed

budget for the 2020-2021 school year is 93,104.440 with expenditures reaching 93, 473,567.

Hildebrandt emphasizes the importance of passing the May 5, 2020 bond, this is a necessity in

order to meet Bloomfield Hill School’s district goals and maintain a high standard in the

community of educational excellence.

Works Cited
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Bloomfield Hills School District. (2020). Bloomfield Hills Schools. Retrieved from My
Bloomfield: https://www.bhsbond2020.com/