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Holly Area Schools reports state and federal funding uncertainty as FY26 approaches
Summary
District leaders told the board July 14 that the State of Michigan has not finalized the FY26 budget and that a temporary federal pause will affect several K–12 program allocations; an audit is scheduled July 28–August 1 as staff finalize year-end finances.
District finance staff told the board July 14 that uncertainty in Lansing and at the federal level complicates planning for the 2025–26 school year.
Director Earl reported the State of Michigan has not finalized the FY26 budget; proposed per-pupil foundation amounts discussed in the meeting notes ranged from $9,608 to $10,025. The minutes record that increases to Special Education, funding for At-Risk programs, Mental Health/School Safety and Universal Meals remain points of disagreement as negotiations continue.
At the federal level, the district was notified of a temporary pause in K–12 funding that will affect Holly Area Schools’ FY25 allocations for Title IIA, Title IIIA and Title IVA; Title I and IDEA allocations were recorded as not affected. District staff said they are finalizing year-end finances and preparing for the annual audit scheduled for July 28–August 1, 2025.
Business and Finance Consultant Lenar told the board the district continues to monitor state budget talks and noted a particular point of contention under discussion in Lansing: a proposed combination of the School Aid Fund with road funding. The minutes record no vote and no formal fiscal action taken at the meeting.
