Superintendent warns of $2.8M operating deficit as ESSER reimbursements stall; board to consider a $100,000 scheduling study

Battle Creek Public Schools Superintendent Dr. Carter told the Board of Education during the April 14 work session that the district is preparing a conservative budget approach for 2025–26 after a series of funding shifts that together create an estimated $2.8 million operating deficit.

Dr. Carter described multiple drivers behind the shortfall: a statewide drop in identified economically disadvantaged students that reduces at‑risk per‑pupil funding, uncertainty in federal Title funding, rising retirement and health‑benefit costs and the end of ESSER (COVID relief) dollars. "We received $45,000,000 of ESSER or what is known as COVID relief," Dr. Carter said, adding that the district has used those funds for supplemental staffing and capital projects and is now planning how to discontinue nonrecurring programs with minimal impact on instruction.

Board members were also briefed on a specific ESSER issue. Director DeMott said the Calhoun Intermediate School District's revision for federal money was $11,000,009.80 on prior budgets and the preliminary 2025–26 figure is just under $5,000,000; she said the ISD was taking a conservative stance amid federal uncertainty. Dr. Carter described a separate ESSER extension of about $3,000,000 that the district expected for HVAC and air‑quality contracts: "Of the $3,000,000, we've spent $1.2 [million], and we've already drawn down. ... we have about 2 and a half million, give or take, that the equipment's on order supposed to be here, and the work was scheduled to be done by May 2025," he said. He also said the state had initially signed extensions for in‑progress ESSER projects, then reversed that authorization and the district is pursuing legal review and state-level remedies.

Dr. Carter said the district is adopting a staged budget plan: department leaders were asked to identify 2% and 4% general‑fund reduction scenarios (the 2% scenario would be roughly $1.5 million; 4% roughly $3.0 million). He emphasized prioritizing classroom impacts and using attrition, strategic reassignment and targeted program reductions before layoffs. "We want to minimize the impact on students and staff where possible," he said.

He reported contract class sizes in the collective bargaining agreement: K–3 at 26, fourth and fifth at 28, and grades 6–8 at 25. The superintendent told the board that 80% of the district's budget is personnel and that program reductions will be required if supplemental federal funds do not continue.

Several specific near‑term items were discussed:

- Calhoun ISD general fund budget: The ISD submits a 2025–26 preliminary general fund budget for local districts' review and adoption; the board was asked to review the packet and formal adoption will be on a future agenda as a resolution.

- AIR scheduling study: Dr. Carter proposed contracting the American Institutes for Research (AIR) for a two‑phase review of alternative scheduling options (balanced calendars, year‑round, instructional time analysis and community feedback). He asked the board to approve up to $100,000 from a supplemental grant for a Phase 1 study with an August report; if the board wanted to proceed with community engagement, AIR would perform a Phase 2. Dr. Carter said he had received a competing quote of about $300,000 and favored AIR because of its existing work with the district. No vote on the contract was taken at the work session; Dr. Carter said the item would appear on next week's consent agenda for action.

- Sysco procurement: A motion to approve a Sysco order in the amount of $112,500 (funding source identified as 107a, an adult‑education grant subsection) was moved by Trustee Grajak and seconded by Trustee Norman; the board approved the purchase by voice vote.

- BCPS improvement bond: Dr. Carter reminded the board that the district is asking the community to support a proposed $100 million improvement bond on the May 6 ballot. He said bond projects would focus on occupied facilities that need security upgrades, roofing repairs, playground updates and other capital needs so operational funds would not have to cover those costs.

Dr. Carter announced a district listening tour, "Voices and Vision," with four sessions: April 21 at Valley View (5:30 p.m.), April 22 at Post Franklin (5:30 p.m.), and two sessions on May 1 (10:30 a.m. in the boardroom and 5:30 p.m. at Battle Creek Central's McQuiston Learning Center).

Board members asked questions about potential program reductions, whether surplus funds could be used for nonrecurring needs, the negotiating stance with unions amid uncertainty, and community consolidation as a long‑term option. Dr. Carter said district leaders are focusing on essential services and planning further right‑sizing steps in the fall as part of a multi‑phase process.

The work session included follow‑up steps: ISD budget resolution and any AIR contract would come back to the board for formal votes; the Sysco purchase was approved during the meeting.