Finance presenter outlines $632,192 deficit, cites 1-mill option for Mount Pleasant Area SD budget

At a June 3 special meeting, the finance presenter for Mount Pleasant Area SD said the district’s near-final budget lists $39,797,005.21 in revenue against $40,429,713 in expenditures, yielding a $632,192 shortfall. The presenter emphasized the version shown to the board "does not have a tax increase."

Why it matters: district staff warned that the current deficit would reduce the district’s fund balance and that the board must adopt a final budget by June 30, with the regular meeting on June 24 slated as the likely adoption date. The presenter said adopting on June 24 would avoid additional meetings.

The presenter described revenue as roughly 98% state and local and noted some federal Title allocations remain uncertain. He said Title I for the current year decreased by about $50,000 and that Title II and Title IV allocations remain unclear. The presentation credited Gallagher Insurance for lower-than-expected cyber and workers’‑comp costs and mentioned a reimbursement tied to a pathways coordinator position.

On expenses, the presenter said the district is a service organization with about 60% of expenditures devoted to salaries and benefits. He cited a prior early-retirement incentive that 11 employees accepted, saving about $300,000; pension/retirement costs were reported as 2,109,000 and the district’s net health‑insurance cost was presented as 3,744,000. Capital needs noted included classroom chairs (third-year replacement cycle) and $150,000 for technology hardware replacement. A weapons‑detection system was budgeted at approximately $53,000 but the presenter said that line may be reduced. The district’s new bond carries a debt service payment of $496,782 and a capital reserve transfer of $70,000 remains in the plan.

Presenter’s recommendation and millage scenarios: the presenter walked the board through scenarios showing that without a millage increase the deficit stands at about $632,192 and that a 1‑mill increase would reduce, but not eliminate, the shortfall; he said, "I would like to see a 1 mil tax increase," but added staff can make the budget work either way. He warned that millage changes affect multiple years and that the district’s fund balance could decline if deficits persist. The presenter reported a projected fund-balance figure of $4,765,000 (about 11.72% of budgeted expenses) under a no-millage scenario as presented.

Board questions: members asked about what portion of the budget is fixed (the presenter estimated roughly 70–75% fixed), the chair‑replacement cycle in classrooms, and transportation/outplacement costs. The presenter said transportation costs were approximately $2,800,000 and outplacement tuition was "at least over $1,000,000." Several board members asked staff to convene the finance committee for a line‑by‑line review before the June 24 meeting.

Next steps: the presenter asked the board for direction ahead of the June 24 regular meeting and reminded members the district must adopt a final budget by June 30. The board did not take a final vote on the budget at the June 3 special meeting.