Lapeer Community Schools faces $3–4 million gap as enrollment slides; district plans facility studies
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
Finance staff told the board the district has about 4,133 students and a projected revenue shortfall that could range from $3 million to $4 million; Superintendent said district will run facility‑utilization and operational‑efficiency studies to consider consolidations and possible building sales.
Lapeer Community Schools officials told the board their adopted budget for fiscal 2025–26 is in deficit and that a combination of declining enrollment, retirement‑rate changes and delayed property sales has widened pressure on district finances.
Eric Ingalls, director of finance, said current enrollment is about 4,133 students and that the district’s per‑pupil foundation allowance used in the slide presentation was about $10,050, yielding roughly $41 million in base revenue when multiplied by enrollment. Ingalls described state enrollment declines and said school aid funds remain relatively healthy at the state level but local enrollment losses drive much of the district’s revenue challenge.
The superintendent told the board the administration had identified just over $1 million in reductions for the current fiscal year and that a remaining deficit is estimated in a range between $3 million and $4 million depending on forthcoming variables and legal matters. "We have had some variables break against the district ... to the tune of about $2 million," the superintendent said, citing changes in retirement rates and delays in property sales.
To respond to longer‑term structural issues, the board approved engaging Barton Malow (construction management) to complete a facility‑utilization study and an operational‑efficiency study; results are expected in spring 2026 and will inform options such as grade‑reconfiguration, consolidation of buildings, closing or marketing excess properties and staffing efficiency adjustments. The finance presentation cited that roughly 81% of district expenditures are in salaries and benefits, limiting the degree to which capital cuts alone can close the gap.
Committee reports also noted the district has an offer to sell about 3.87 acres of property on Clark Road adjacent to Lakata’s facility for $27,090; committee members recommended full board approval at a future meeting. The board did not adopt additional budget actions at this meeting but directed continued evaluation and community engagement ahead of the June budget adoption.