Hartland CFO: district fund balance robust now but one‑time state dollars complicate planning; meal pricing may change
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Summary
Chief financial officer Rachel presented the 2025–26 initial budget and warned that about $3.5 million of last year’s revenue came from one‑time categorical sources; if the state does not continue free-meal funding the district will likely need to raise paid meal prices.
Rachel (chief financial officer) presented the district’s budget picture on June 16 and told the board the general fund ended fiscal 2024–25 with a healthy fund balance (projected about 29 percent of expenditures) largely because of one‑time state and federal dollars in recent years.
Rachel said the district is projecting a roughly $3.5 million revenue decrease in 2025–26 if one‑time categorical funds are not renewed by the state. Because about 80 percent of the district’s revenue comes from the state, the district must adopt a preliminary budget by July 1 and will amend it once the state budget is finalized.
She walked the board through expenditure categories, noting instruction is the largest spend and that about 79 percent of general fund expenditures are salaries and benefits. Rachel presented scenario projections that show fund balance declining over several years if one‑time revenues do not continue, and she told trustees the district is monitoring the situation to allow time for programmatic adjustments if needed.
Rachel also warned the board that the state’s temporary program that paid for free breakfast and lunch for all students may end; if Michigan does not renew the universal free meals program the district will need to set prices for paid meals. She said prior to pandemic-era programs high‑school lunches were about $3–4 and estimated an increase of roughly $0.50–$0.75 is possible based on preliminary modeling; final figures depend on federal/state reimbursement guidance that had not been released.
On preschool, the administration said it will expand an LESA‑run universal preschool program at the district’s 51 building; LESA will serve as the fiduciary and employ staff to avoid intra‑district wage competition while expanding slots. Board members asked about staff transition details and were told administrators are working through personnel and longevity questions with LESA.
Rachel advised the board that, given the state budget uncertainty, the administration will bring budget amendments to the board once the state budget is finalized and recommended keeping the district’s projected fund balance as a buffer while planning possible adjustments.
