Budget presentation shows widening shortfall; board adopts 2025-26 amendments and prelim 2026-27 appropriations

Steve Goss, the districts finance director, presented the monthly budget progress report and the preliminary 2026-27 general fund budget to the Vixsburg board on June 8.

Goss said year-to-date revenue through May is about $29.24 million (roughly 76% of the proposed budget) and year-to-date expenditures are about $31.68 million (about 80.5%). He told the board the projected shortfall for 2025-26 widened from an initial projection of $567,000 to roughly $1.0 million and that the district expects to end the year with a fund balance near $8.47 million (about 2122% of the budget). "Our revenue projections are coming in lower than we expected for a variety of reasons," he said, and pointed to several large, single-invoice items (for example, a roughly $180,000 invoice for a CTE program) that affect year-end numbers.

Looking ahead to 2026-27, Goss said the preliminary general fund budget assumes modest foundation allowance growth (about $250 per pupil), a projected enrollment decline of about 20 students and net revenue growth of roughly 1.4%. Under those assumptions he estimated 2026-27 expenditures of about $40.1 million, producing a projected fund balance of about $7.25 million (roughly 18% of the budget) if current assumptions hold.

Goss cautioned the board about several risks: enrollment declines statewide, continuing inflationary pressure on salary and benefit lines, and the timing and compliance requirements of a new state CTE grant that required rapid spending and complex procurement steps. He also noted the district maintains invested reserves (about $11 million across funds) and said that Standard & Poors has cited the districts reserves above 20% as a positive factor in maintaining an A+ rating; however sustained deficits could pose downgrade risk.

At the required budget hearing the board opened public comment and then took action on consent and budget items. The board approved acceptance of open enrollments under Public Act 94 for 2026-27 and renewed VHS and BMS membership in the Michigan High School Athletic Association for August 1, 2026 to July 31, 2027; the MHSA motion passed by roll call with all voting members recorded as "yes." The board then moved and approved the 2025-26 budget amendments and adopted appropriations resolutions for 2026-27 across multiple funds by a majority vote.

Goss recommended continued monitoring of enrollment and state budget developments and urged the board to use the districts fund balance strategically to avoid disruptive cuts. "Fund balance gives us options," he said, and noted that while the district remains above typical reserve thresholds for now, the board should consider deliberate adjustments to avoid long-term erosion of reserves.

The meeting continued with policy readings and other routine business after the budget items.