Cedar Springs board reviews 2025-26 budget outlook, explains truth-in-taxation rollback
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Summary
Board finance staff presented final 2024-25 amendments and the proposed 2025-26 budget, citing a Headlee rollback factor of 0.9956 that reduces potential millage revenue; administration plans to ask the board to adopt L-4029 forms after the budget hearing.
Business officials for Cedar Springs Public Schools told the board on June 9 that the district will ask trustees to adopt the L‑4029 property tax forms after the budget hearing, and walked trustees through the final 2024–25 budget amendments and the administration’s proposed 2025–26 budget.
The presenter said audited state-aid membership for the 2024–25 year was 2,996 full‑time equivalencies and described a Headlee rollback calculation that produced a rollback factor of 0.9956. "By rolling back the millage rate on an annual basis, the district is foregoing an additional almost $150,000 of general fund revenue that we would otherwise be able to collect," the business official said. He gave estimated millage rates of about 17.3275 mills on nonhomestead property and 5.3275 mills on other classifications.
The administration summarized final 2024–25 adjustments (local revenue up roughly $55,000, reduced interest-earning assumptions, and several categorical changes) and said it would transfer $435,000 from the general fund to a new capital improvement fund to support upcoming projects. After the amendments, staff projected an annual surplus of just under $2,000 and a June 30 fund balance of about 30.78 percent.
Looking to 2025–26, staff projected state-aid membership of about 2,942 FTEs (a decline of 54 FTEs), noted several categorical funding streams (for example, Section 147 lines) that are changing or ending and estimated a projected deficit of $366,595 with a projected fund-balance percentage near 30.18 percent for the coming year. The presentation flagged a $1.7 million reduction tied to the loss of certain Section 147 categorical funds and flagged an estimated arbitrage liability tied to bond proceeds of roughly $845,000.
Administrators said the board would be asked to take formal action to adopt the L‑4029 tax forms and the 2025–26 budget at the June 23 meeting, and urged trustees to consider timing for county and township tax-roll preparations. The business official emphasized the estimates are subject to state budget changes and enrollment, and recommended the board use its June 23 meeting to finalize actions if numbers remain stable.