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MPS warns of possible $7M‑plus shortfall for FY2627 as ESSER funds expire
Summary
District finance staff told the board that Midland Public Schools projects a worst‑case path of roughly $7 million deficit for FY2526 and highlighted a conservative FY2627 outlook driven by enrollment declines, benefit cost uncertainty and the end of federal ESSER funds.
Midland Public Schools officials told trustees on April 20 that the district faces continuing fiscal pressure as one‑time COVID relief funds (ESSER) have expired and enrollment declines and rising personnel costs press future budgets.
Anna Womack, presenting the FY2627 budget workshop, said the district ended the audited FY25 year with a $35.6 million fund balance but is projecting a conservative scenario that could yield a $7 million deficit in FY2526. For FY2627 staff are modeling a 41‑student enrollment decline (about $410,000 in lost revenue) and have conservatively budgeted a $200 per pupil foundation allowance increase — below the governor’s proposed $250 — producing roughly $1.54 million in additional revenues under their assumptions.
Womack said personnel costs remain the largest driver — 83.5% of the general fund goes to salaries and benefits — and noted medical cost volatility. Departmental requests submitted in March totaled about $1.5 million in additional expenditures, and staff estimated the district would need roughly $1,165 in foundation allowance increase per student to close the projected gap under current assumptions.
Trustees and the public asked for more detail about legacy retirement (MPSERS) costs and per‑pupil impacts of the state’s proposed reductions in some retirement funding lines; Womack agreed to provide further breakdowns in coming budget updates. Board members emphasized the district’s historical practice of conservative budgeting and said staff will continue refining projections ahead of a June presentation and the district’s formal budget adoption timeline.
No formal reductions or layoffs were proposed at the workshop; staff described the presentation as an early, conservative planning step and said they will return with updated scenarios as state-level budget details become final.
