Plymouth‑Canton presents 2025‑26 budget outlook; projects enrollment decline and identifies $3.2M in reductions
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Summary
Chief finance officer Jill Minnick presented the district’s budget development timeline and assumptions, projecting a loss of 151 pupils, a $1.5 million revenue hit from enrollment decline and identified roughly $3.2 million in expenditure reductions to help preserve fund balance.
Jill Minnick, the district’s chief finance and operations officer, told the Plymouth‑Canton Community Schools Board of Education that the district is preparing for a tighter 2025‑26 fiscal year, driven by declining enrollment and modest state revenue increases.
Minnick said the district projects 15,883 full‑time‑equivalent (FTE) pupils next year — a decline of 151 students — which represents about $1.5 million in lost revenue under current foundation allowance assumptions. She reviewed the executive, House and Senate proposals for the state’s school aid budget: the governor proposed a $392 per‑pupil foundation increase, the House proposed $417 and the Senate $400. Minnick said the governor’s figure, if adopted, would generate about $6.2 million for the district from the per‑pupil increase.
The presentation included results of the May consensus revenue estimating conference showing nominal revenue growth in the state school aid fund (2.1%–2.6% near term). Minnick warned that the district’s enrollment decline — a trend reported across many Michigan traditional districts — will offset part of the per‑pupil increases.
To maintain fund‑balance policy targets and to align staffing and resources with lower enrollment, Minnick said the district will need multi‑year adjustments. She said district staff identified approximately $3.2 million in expenditure reductions for 2025‑26. Those reductions break down to roughly $1.1 million in salaries and benefits (largely from eliminating vacancies and reductions tied to retirements), about $1.6–$1.7 million in professional services and related non‑payroll reductions, and about $425,000 from supplies, equipment and capital outlay line items.
Minnick described additional assumptions used in the budget build: a conservative projection that the foundation allowance increase will match the governor’s proposal, a 2% increase in enhancement millage revenue and a $300,000 allowance for higher utilities costs. She also said the district plans to preserve fund balance with an approach that includes a planned, limited use of fund balance and multi‑year reductions; the analysis showed a roughly $5.5 million adjustment would be needed to reach a 15% fund‑balance target, with identified actions and typical year‑end savings narrowing that gap.
Board members asked staff a range of follow‑up questions. Member Jennifer Voss asked how nurse and health‑tech reductions would affect building office staff; Liz Vartanian Gibbs, assistant superintendent for student and family engagement, said district leaders have discussed adjustments with building administrators and will reassign responsibilities and monitor clinic coverage. Treasurer Patrick Kehoe and other members stressed that the reductions will be felt and emphasized the district’s limited authority to address state funding shortfalls.
Minnick closed by outlining the calendar for the final budget: a review with the finance and operations committee on June 5, a public budget hearing and first reading on June 10, and a second reading and adoption expected June 24; she also noted subsequent budget amendments may be required once final state figures and October pupil counts are available.
