Clarkston Community Schools adopts 2025-26 budget with $4.7 million deficit; state funding still unsettled

Clarkston Community Schools on Monday held a public hearing and then approved its original 2025-26 budget, adopting a plan that projects $129.3 million in revenue, $134.2 million in expenditures and a $4.7 million deficit.

The hearing opened at 6:45 p.m., when Marybeth Rogers, the district’s executive director of business services, presented assumptions behind the budget, including projected open-enrollment gains of 75 students and a 2.5% increase in benefit costs. Rogers told the board that “90% of our revenue is unknown without a state aid budget of being approved.”

The district’s budget assumptions also reflect uncertain state funding: Rogers said the governor’s budget was at “392” (as discussed in the presentation) while the state Senate’s proposal was slightly higher; she told the board the Michigan House had not yet released a competing budget. Superintendent Ryan reminded the public of the deadline: “Just for the benefit of the public, by law, we have to adopt this budget by June 30.”

Nut graf: The adopted budget assumes ongoing carryover reductions from one-time federal and state grants used in 2024-25, higher debt service tied to a new bus purchase and modest expenditure increases in utilities and insurance. Even with those assumptions, the district expects to end the year with a total fund balance of roughly 18% and an unassigned balance of about 16.5%.

Most important figures and assumptions from Rogers’s presentation include a revenue estimate of $129,300,000, projected expenditures of $134,200,000, a planned deficit of $4,700,000, an estimated ending fund balance of $24,200,000 and an unassigned fund balance of approximately $22,200,000 (16.5% after assignments and nonspendable amounts). The budget incorporates a foundation allowance assumption described in the presentation as “392,” which Rogers said equates to about $10,000 per pupil under the district’s modeling.

Rogers told the board the budget removes one-time revenues recognized in 2024-25 — including federal COVID-era funds, bus sale proceeds and other carryovers — and does not assume renewal of several multi-year grants. She noted specific expenditure changes: added long‑term debt principal and interest tied to a four-bus IPA, an estimated $60,000 increase in utilities, and an estimated $28,050 increase in property insurance. The presentation also listed projected retirements and related human resources obligations at just under $1.2 million.

Board members asked no substantive questions during the public hearing portion; no members of the public addressed the board on the budget at the hearing. After the hearing closed, the board voted to approve the original 2025-26 budget. The motion to adopt the budget was made and supported on the record and approved by voice vote; the meeting record shows the board’s roll-call presence as Mr. Clark, Mrs. McGinnis, Mrs. Love, Mr. Hyer, Mrs. Crane and Mr. Neate, with Mrs. Egan absent.

The district also approved the final amended budget for 2024-25 earlier in the meeting; that action removes one-time items from the current-year accounts and aligns revenue and expenditure figures before adopting the new fiscal-year budget.

The district’s finance staff and superintendent noted repeatedly that final state revenue figures remain uncertain until the Legislature passes its budget, and that the district is required by statute to adopt a budget by June 30 even when the state aid numbers are not final. Rogers said the finance team will monitor developments and present adjustments as needed during the year.

Looking ahead, the board will receive routine budget monitoring and any recommended amendments after state action and as carryover and grant clarifications occur.