Milan Area Schools reviews multiple budget amendments and preliminary budgets amid state funding uncertainty

Milan Area Schools board members spent the bulk of their May 20 meeting reviewing first readings of several budget amendments and preliminary budgets as administrators warned that state retirement changes and one‑time revenues are eating into next year’s funding.

The most immediate item was the proposed 2024–25 general fund amendment presented by Krista Hendricks. “We are increasing our revenues by $744,000. We are decreasing our expenses by 9,900,” Hendricks said, and she told the board the amendment would leave the district with a projected fund balance of $2,652,579 — about 7.5 percent of the general fund for 2024–25.

Board members asked for details about the changes behind the increase. Hendricks said the revenue rise included adjustments to state aid and receipts from the Office of Retirement Services (ORS) tied to MPSERS, and noted a portion — roughly $250,000 — represented reimbursements tied to a 3% retiree health contribution that the state has funded. She also cited stronger-than-expected interest earnings and other smaller revenue items.

On the expenditure side, Hendricks said the amendment reduces some textbook and miscellaneous lines and accounts for unplanned capital replacements this year: a high‑school pool compressor ($42,000) and a high‑school boiler replacement ($55,000), along with retiree payouts not known in January’s numbers.

Administrators explained differences among advice from counsel and the auditor about using sinking…