Lansing School Board approves budget amendment after audit shows $7.4 million gain

The Lansing School District Board of Education approved Budget Amendment No. 1 on Dec. 19 after an auditor-driven increase of $7.4 million to the district’s fund balance. The motion, moved by Trustee Williams and seconded by Dr. Cavanaugh, passed by unanimous voice vote (8-0).

The amendment updates the fiscal assumptions made when the budget was adopted in June. According to the presentation, the district’s adopted June 2025 fund-balance estimate of $40,100,000 rose by $7,400,000 in audited results to $47,600,000, and after recognizing a net $1,500,000 increase in revenues and roughly $776,000 in additional expenditures, the director of finance projected a conservative fund balance of about $48,300,000 by June 2025. The presentation identified several drivers: $4,000,000 transferred back from capital projects, roughly $6,000,000 in revenue increases (property taxes, miscellaneous revenue and rebates), a MPSERS reduction of about $2,300,000, program savings of roughly $6,700,000, and staffing increases of approximately $2,500,000.

Board members asked for clarifications about food-service indirect reductions, one-time outgoing transfers for capital projects and bus purchases, and school-level carryovers. The finance presenter explained the food-service indirect decline was due to limits on claiming indirect costs in the district’s contract with Sodexo, and said much of the $5 million school carryover was capital-related (about $4 million). Board discussion noted that some increases reflected one-time projects—such as EPA bus rebates and the purchase of 15 new buses—rather than recurring operating growth.

The board listed the amendment for adoption later in the agenda and then approved it by voice vote. The amendment documentation is attached to the board packet and will be reflected in the minutes.