By Bruce Rolfe
The Climax-Scotts Board of Education adopted the final 2025-2026 and 2026-2027 fiscal year budgets at its regular meeting June 15 showing projected deficits.
C-S Superintendent of Schools Doug Newington said because the State of Michigan has not finalized school funding for 2026-2027, a lot of the 26-27 fiscal year budget that begins July 1 is based on estimates.
The projected total revenue for the new budget is $10,378,653 and total expenditures $10,459,840 for a projected deficit of $81,187.
The 2026-2027 fiscal year budget was built on a projected student enrollment count of 630 and a State Foundation Allowance of $10,300 (an increase of $250 per student). The budget was also built on an average retirement rate of 24.97 percent (a decrease of 1.54 percent), Step Up Revenue through the Virtual Academy program where 32 FTE students are anticipated to complete on line courses and the cost for 57 online students projected to be enrolled in the C-S Virtual Academy.
The new budget also includes cost for a counselor and PR/communications director. Newington said the new budget does not include a part time career coordinator position that was originally grant funded. The C-S superintendent adds if the schedule allows the position at a later time the district could bring the position back.
The new budget also includes projected teacher wages of steps plus 3% and projected wage increases for full time employees. Newington said the district is waiting to see what the state’s budget looks like before adjusting hourly wages.
The new budget also includes current costs of health insurance through 12/31/2026 when a new state cap amount will be implemented, a half-time Literacy Coach funded by a KRESA grant, and an anticipated increase in At Risk Funding from the State.
The new budget anticipates including 31aa funding that is part of the Michigan School Aid Act to improve student mental health and school safety, which the school district opted out of last year.
If the local school district does use the projected $81,187 out of fund balance to balance the 26-27 fiscal year budget next June, the school district will still have a healthy fund balance at $1,962,254 (18.76%). It is recommended maintaining a general fund balance (equity) of 15% to 20% of the district’s annual operating budget.
Newington emphasized once the state’s final state aid information is available, the 26-27 budget will be revised.
The board also adopted the anticipated final 2025-2026 budget.
The board adopted the 2025-2026 fiscal year budget last June showing a projected deficit of $153,302, however the assumed 2025-2026 budget that ends June 31 the board adopted June 15, shows a deficit of $216,541. Anticipated revenue totaled $10,582,712 and total expenditures totaled $10,799,253.
Newington explained a significant contributor that spikes total revenue, is MPSERS revenue received from the State of Michigan to “buy down the unaccrued liability for the school retirement system.”
Newington adds elevated expenditure and revenue totals could also be driven by a one-time source like grants for purchasing curriculum and educator compensation.
The 25-26 budget was built on a blended student enrollment count of 630 and State Foundation Allowance of $10,050 per Full Time Equivalency (FTE).
The 25-26 budget also included Step Up Revenue through the Virtual Academy program where 32 FTE students completed on line courses.
The 25-26 budget included the cost of 57 online students enrolled in the C-S Virtual Academy, and costs for a career coordinator, counselor and PR/Communications director.
There was also a literacy coach position in the elementary funded by a KRESA grant.
The projected $216,541 deficit would leave the school district with a $2,043,441 (18.92 percent) general fund balance equity figure.
The largest source of the district’s Foundation Allowance revenue comes from the state (92 percent), and another eight percent comes from local property taxes. The district also receives some federal funding revenue.
Budget expenses by category include 72 percent for wages and benefits and 28 percent for other expenses like transportation, utilities and supplies.
While anticipated total expenditures in the 26-27 budget are lower ($10,459,840) then the final projected 2025-2026 budget expenditures ($10,799,253), expenditures in the district have more then doubled the last 10 years.
Ten years ago, the C-S School Board adopted the 2016-2017 budget showing projected expenditures at $5,182,614.
The proposed 2022-2023 budget showed projected expenditures totaling $7,952,091.
The Climax-Scotts Board of Education adopted the final 2025-2026 and 2026-2027 fiscal year budgets at its regular meeting June 15 showing projected deficits.
C-S Superintendent of Schools Doug Newington said because the State of Michigan has not finalized school funding for 2026-2027, a lot of the 26-27 fiscal year budget that begins July 1 is based on estimates.
The projected total revenue for the new budget is $10,378,653 and total expenditures $10,459,840 for a projected deficit of $81,187.
The 2026-2027 fiscal year budget was built on a projected student enrollment count of 630 and a State Foundation Allowance of $10,300 (an increase of $250 per student). The budget was also built on an average retirement rate of 24.97 percent (a decrease of 1.54 percent), Step Up Revenue through the Virtual Academy program where 32 FTE students are anticipated to complete on line courses and the cost for 57 online students projected to be enrolled in the C-S Virtual Academy.
The new budget also includes cost for a counselor and PR/communications director. Newington said the new budget does not include a part time career coordinator position that was originally grant funded. The C-S superintendent adds if the schedule allows the position at a later time the district could bring the position back.
The new budget also includes projected teacher wages of steps plus 3% and projected wage increases for full time employees. Newington said the district is waiting to see what the state’s budget looks like before adjusting hourly wages.
The new budget also includes current costs of health insurance through 12/31/2026 when a new state cap amount will be implemented, a half-time Literacy Coach funded by a KRESA grant, and an anticipated increase in At Risk Funding from the State.
The new budget anticipates including 31aa funding that is part of the Michigan School Aid Act to improve student mental health and school safety, which the school district opted out of last year.
If the local school district does use the projected $81,187 out of fund balance to balance the 26-27 fiscal year budget next June, the school district will still have a healthy fund balance at $1,962,254 (18.76%). It is recommended maintaining a general fund balance (equity) of 15% to 20% of the district’s annual operating budget.
Newington emphasized once the state’s final state aid information is available, the 26-27 budget will be revised.
The board also adopted the anticipated final 2025-2026 budget.
The board adopted the 2025-2026 fiscal year budget last June showing a projected deficit of $153,302, however the assumed 2025-2026 budget that ends June 31 the board adopted June 15, shows a deficit of $216,541. Anticipated revenue totaled $10,582,712 and total expenditures totaled $10,799,253.
Newington explained a significant contributor that spikes total revenue, is MPSERS revenue received from the State of Michigan to “buy down the unaccrued liability for the school retirement system.”
Newington adds elevated expenditure and revenue totals could also be driven by a one-time source like grants for purchasing curriculum and educator compensation.
The 25-26 budget was built on a blended student enrollment count of 630 and State Foundation Allowance of $10,050 per Full Time Equivalency (FTE).
The 25-26 budget also included Step Up Revenue through the Virtual Academy program where 32 FTE students completed on line courses.
The 25-26 budget included the cost of 57 online students enrolled in the C-S Virtual Academy, and costs for a career coordinator, counselor and PR/Communications director.
There was also a literacy coach position in the elementary funded by a KRESA grant.
The projected $216,541 deficit would leave the school district with a $2,043,441 (18.92 percent) general fund balance equity figure.
The largest source of the district’s Foundation Allowance revenue comes from the state (92 percent), and another eight percent comes from local property taxes. The district also receives some federal funding revenue.
Budget expenses by category include 72 percent for wages and benefits and 28 percent for other expenses like transportation, utilities and supplies.
While anticipated total expenditures in the 26-27 budget are lower ($10,459,840) then the final projected 2025-2026 budget expenditures ($10,799,253), expenditures in the district have more then doubled the last 10 years.
Ten years ago, the C-S School Board adopted the 2016-2017 budget showing projected expenditures at $5,182,614.
The proposed 2022-2023 budget showed projected expenditures totaling $7,952,091.
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