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Milan Area Schools holds first reading of 2024–25 general fund budget amendment; projects fund balance decline
Summary
The board received a first reading of a proposed amendment to the 2024–25 general fund budget that raises revenues and expenditures (largely grant-related and staffing costs) and projects a year-end fund balance of about $1.9 million (5.37%). Sinking fund receipts will not arrive until the next fiscal year, the administration said.
Milan Area Schools officials presented a first reading Jan. 14 of a proposed amendment to the district’s 2024–25 general fund budget that increases anticipated revenue and expenditures and results in a lower projected fund balance at year‑end.
Why it matters: The amendment reflects state aid adjustments, grants, contract settlements and one‑time donations; it also raises questions about short‑term cash flow and repair scheduling because sinking‑fund receipts will not appear in this fiscal year.
Administration summary - Finance director Krista Hendricks told the board she is proposing an increase in revenues of about $2,200,000 and an increase in expenditures of about $1,955,952. The revenue bump reflects grant adjustments, state aid changes, donations (including a $100,000 donation to the FFA) and increased Act 18 monies from the ISD. The increases to expenditures include grant spending, negotiated contract changes, staffing additions and building repairs. - Hendricks said the district began the fiscal year with a fund balance of $5,007,730 and that the amendment would leave a projected year-end fund balance of $1,898,165 (about 5.37% of expenditures).
Sinking fund and repairs - Administration clarified sinking‑fund collections will not be received in time to cover this fiscal year’s repairs; most sinking‑fund revenues will arrive after this fiscal year’s end (tax bills later in the year). The district said many of the repairs listed as expenditures in the amendment were necessary to keep buildings functioning and would be candidates to be funded by sinking fund dollars in future years. - Board members discussed repair vs. replacement decisions and asked for a five‑year prioritization and estimated-cost plan for roofs, facades, sidewalks and parking lots.
Staffing and other items - The amendment includes about $480,000 in increased staffing costs for contract settlements, added custodial positions, paraprofessionals and an additional specials teacher at the middle school. - The administration said state actions (e.g., changes to MPSERS or cap calculations) remain uncertain and could affect the district’s final expense position.
Next steps - This was a first reading. The board will take final action at its next meeting after staff review and any clarifying questions. Board members asked administration for follow-up detail on which repairs are urgent and which can wait for sinking‑fund dollars.
Ending - Board members thanked finance staff for timely responses and said they would continue to review the amendment before the vote.
