Board expresses support for Ingham ISD’s $57 million proposed general fund budget amid federal funding concerns

The Lansing Board of Education voted 7-0 Thursday to express its support for the Ingham Intermediate School District’s proposed 2025 general fund budget, following a presentation by the ISD that outlined a roughly $57 million proposal and flagged several state and federal funding uncertainties.

The board’s action — moved by Trustee Strode and seconded by Trustee Boyer — followed a 90-minute presentation by an ISD representative, Meloma, who described changes in revenue and spending drivers and warned of possible federal cuts that could affect local services.

Meloma told the board that the ISD’s proposed general fund for 2025 would be “about $57,000,000” and that the ISD’s revised budget showed roughly $60,000,000 in revenue in the prior year. She said a $6,000,000 expansion in Great Start Readiness Program (GSRP) funding and a multiyear statewide cybersecurity award (referred to in the presentation as “97g”) were notable changes from the prior year. “My concerns are real because $6,000,000 would be a significant blow to all of our districts,” Meloma said of potential Medicaid cuts.

Why it matters: The ISD budget covers services shared across 12 traditional districts, including early childhood programs, special education, substitute staffing consortia, and tech/business support services. Large swings in state or federal funding — especially in Head Start, Medicaid fee-for-service reimbursements, or one-time cybersecurity grants — could change how the ISD and its local districts deliver those services.

Key points from the ISD presentation

- Proposed totals and drivers: Meloma described a proposed general fund near $57 million and said the revised 2024 budget showed about $60 million in revenue. She attributed the year-to-year change in part to a $6 million expansion in GSRP funding and the prior receipt of a large cybersecurity grant. The presentation noted continuing upward pressure on substitute costs since the pandemic.

- Early childhood and GSRP: The ISD emphasized expansion of GSRP (Michigan’s free preschool program), early childhood supports that begin at birth (playgroups, prenatal supports, family engagement), and braided funding arrangements with Head Start in some classrooms. The ISD reported more classrooms serving preschool students than five years ago and described outreach to increase participation.

- Federal program risks: Meloma said there was “deep concern” about federal Head Start funding and described recent discussions with state officials. The ISD also said congressional discussion of Medicaid changes could threaten roughly $6 million that flows to the ISD for Medicaid-billable special education services, and that it is advocating with legislators.

- Special education funding and formula work: The ISD reported about $105 million flowing through its special education allocation from state, IDEA and local taxes, with roughly $50 million of those dollars flowing back to local districts under the ISD formula. The ISD said it has submitted a revised distribution formula to the Michigan Department of Education for approval.

- Cybersecurity and 97g: The presentation described a multiyear statewide cybersecurity program (referred to as 97g) that supplied roughly $9 million in prior awards and provides base protections to districts; the ISD said the grant helped detect and stop cyber intrusions in nearby districts and that the ISD will advocate for continuation of the work.

Board discussion and community questions

Trustees asked for clarity on how the ISD budget affects the Lansing School District specifically. Meloma explained the ISD budget covers services to all 12 traditional districts the ISD serves and that local boards are asked to pass a resolution of support by June 1; the ISD then finalizes its budget by June 30 as required under state law. Trustee Williams asked how much of the ISD budget is directed to Lansing; Meloma said “there isn’t anything out of your budget that comes towards us” and reiterated that the ISD’s budget supports shared services across member districts.

Trustees also pressed for more detail about early childhood expansion, Head Start partnerships and contingency planning if federal Head Start or Medicaid funding is reduced. Meloma encouraged continued advocacy with local legislators and said the ISD is working to prepare for multiple scenarios.

Formal action

- Motion: “That the Board of Education express its support for the Ingham Intermediate School District proposed general fund budget as presented.” - Mover: Trustee Strode. Second: Trustee Boyer. - Outcome: Approved, 7–0 (see provenance for full roll call).

Where this story came from: The ISD presentation and trustee Q&A occurred during the Lansing Public School District Board of Education regular meeting and informational study session on April 17, 2025.

What’s next: Local boards are asked to pass a resolution supporting the ISD budget by June 1; the ISD must adopt its budget by June 30. The ISD said it will continue advocacy around Head Start and Medicaid funding and will keep member districts informed if state or federal decisions change revenue expectations.