Nik Rajkovic / news@whmi.com

Ann Arbor Public Schools is using a third-party firm to investigate its $25 million budget shortfall, which includes a $14 million "clerical error," that's forcing the district to layoff teachers and administrative staff.

During a virtual meeting Monday night, Ann Arbor's current school board president admitted they knew the budget was off months ago.

"When the Board passed the budget for this year, they were hopeful and optimistic they could do a realignment and bring that budget up to six percent," said Torchio Feaster.

"That did not actually happen. As a result, we continue to move downward."

School districts in Michigan must carry at least a five percent fund balance.

Ann Arbor Public Schools is now under a hiring freeze as it tries to renegotiate contracts with vendors, and looks to possibly sell vacant properties to close its budget gap.

Another public meeting is Tuesday night at Huron High School.