Plymouth-Canton board adopts final 2024–25 budget amendment and hears plan to close projected 2025–26 gap
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Summary
The Plymouth-Canton Community Schools board adopted a final 2024–25 budget amendment and received a presentation on the proposed 2025–26 general fund budget, which assumes a projected enrollment decline, revenue uncertainties from the state and a proposed $5.5 million in reductions to preserve fund balance.
The Plymouth-Canton Community Schools Board of Education on Tuesday adopted a final amendment to the 2024–25 general fund budget and heard a detailed presentation of the proposed 2025–26 budget that projects lower enrollment, variable state aid, and a $5.5 million gap the district plans to address with across-the-board reductions.
Jill Minnick, chief finance and operations officer, told the board the district “doesn’t know our enrollment. We don’t know our funding,” and described the proposed budget as built on assumptions tied to the state’s consensus revenue estimating conference and legislative budget proposals. The board approved the 2024–25 final budget amendment on a 6–0 vote.
The presentation laid out the district’s primary revenue drivers: state aid (calculated as pupils times the foundation allowance), a countywide enhancement millage, and retirement cost offsets from the Michigan Public School Employees Retirement System (MPSERS). Minnick told the board the district is projecting a foundation allowance of $10,000 per pupil for 2025–26 (up from $9,608), a projected enrollment decline of 151 full‑time equivalent pupils to about 15,883 FTEs, and a resulting net state‑aid increase of roughly $4.78 million after accounting for fewer students.
The district also highlighted a larger comparison figure from the School Finance Research Collaborative: an inflation‑adjusted per‑pupil cost estimate of $12,175, which the presentation said implies an approximate $34.5 million local funding gap if the district were fully funded to that level.
On the expenditure side, staffing and benefits account for the bulk of expenses—about $190.7 million or roughly 83 percent of the proposed $230.6 million budget. Minnick said staffing is the largest single cost and that the district will align positions to enrollment and board‑adopted class size guidelines. Projected savings identified in the budget work include about $2.25 million tied to staffing alignment, approximately $1.1 million estimated savings from roughly 20 retirements, and a $1.6 million employer‑rate retirement savings projection tied to actuarial changes.
Faced with the combined effects of enrollment decline and cost pressures, district leaders told the board they identified $5.5 million in needed budget adjustments. Of that total, the team has targeted $3.2 million in reductions across salaries, benefits, services, supplies and equipment and expects an additional roughly $2.5 million in unspent budget savings historically returned at year end. Minnick said those steps are intended to protect the district’s fund‑balance target: the presentation said the district is aiming to reach 15 percent of expenditures (a best‑practice target) and noted that without reductions the fund balance could fall below the board policy threshold in future years.
The board also received a short presentation and vote on the 2024–25 final budget amendment. Jody Malbin, the district’s executive director of finance and accounting, reviewed the mid‑year amendment numbers and the recommended final adjustments. The board approved the final amendment by roll call (6–0); the presentation projected an ending 2024–25 general fund balance of about $40.9 million, or approximately 18.2 percent of expenditures.
Board members and student representatives asked for clarifications on assumptions. Student co‑chair Josh Patterson asked what community members could do to help reduce the deficit; Minnick recommended efforts to boost enrollment and outreach to families that might choose other options. Board members emphasized the need for continued advocacy with state legislators for more school funding and noted that further reductions will likely be required in later fiscal years if state revenues and enrollment trends do not improve.
The board packet and presentation also reviewed other funds (capital projects, debt service, internal service for the self‑insured medical plan, special revenue funds and student activity funds), and noted routine legal constraints such as the separation of bond proceeds for capital projects and the statutory duty to levy debt service millage to meet bond payments. Minnick and Malbin told the board they will monitor state legislation, enrollments and categorical grant awards and will present a mid‑year budget amendment in winter should assumptions change.
The board’s unanimous votes this evening included the adoption of the 2024–25 final budget amendment, approval of a cooperative agreement for the district’s virtual academy with Novi Community Schools (consent agenda), and several other routine items. Board leaders said the district audit will begin in July and be presented in November, which will provide the final audited variances for 2024–25.
The district’s next steps are to continue outreach to families, align staffing with projected enrollment, implement the targeted reductions while minimizing impacts to students, and to bring forward a midyear amendment if state action or enrollment differs from the assumptions used in the proposed 2025–26 budget.
