Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
Cedar Springs board approves 2026 tax-rate filing, hears budget shortfall and one-time costs
Summary
The Cedar Springs Public Schools board approved a 17.2685 mill tax-rate filing to preserve CPI multiplier benefits and heard administration warn of near-term budget pressure driven by enrollment loss, a $260,000 insurance reimbursement and one-time Hilltop abatement costs that produce an $800,000 funding gap under current assumptions.
The Cedar Springs Public Schools Board of Education on June 8 approved a 2026 tax-rate filing that preserves the district’s ability to use the CPI multiplier, while administration laid out a preliminary 2026–27 budget that projects pressure on operating funds.
During the Truth in Taxation presentation, the district’s finance presenter said the Headlee rollback fraction for tax year 2026 is below 1.0, requiring a reduced millage from 2025’s rate. The board approved a proposed operating levy of 17.2685 mills on nonhomestead and non-qualified agricultural property, projected to generate about $3.7 million in operating revenue if levied as proposed.
Why it matters: the filing allows the district to apply the CPI multiplier; without that step the district would face a larger rollback and additional lost revenue. The presenter said the difference between levying 17.2685 mills and the full 18 mills is roughly $177,000 — equivalent to about 1.5–1.75 teaching FTEs — and that failing to take the action would have meant an additional $104,000 loss beyond that figure.
Budget details and risks: administration reviewed the 2025–26 final budget and an initial 2026–27 forecast. The district has seen steady enrollment declines since 2019–20 (a net loss of about 614 FTE), which the presenter estimated reduced operating revenue by roughly $6.2 million at current foundation-allowance levels. Major recent adjustments include a $260,000 insurance reimbursement for roof damage at Red Hawk (net of the district’s $10,000 deductible), a $187,000 downward adjustment to an ISD transfer, and other categorical changes that together left the 2025–26 budget near break-even once one-time items were considered.
The presenter said expenditures increased in the amendment largely due to the insurance-related operations and maintenance charge and other year-end adjustments. When capital and one-time items were included — notably an estimated $425,000 for Hilltop abatement — the presentation showed the district approaching an $800,000 deficit before considering opt-outs and fund transfers. The administration reported an overall general-fund reserve in the high 20s (percent of fund balance) and said a 15–20% target would be desirable going forward.
Next steps: the board voted to transmit the L4029 millage request to local treasurers so tax bills can be prepared. Administrators said they will adjust budgets at the June 22 meeting if new invoices or state funding information arrives. The budget presenter also flagged pending state-level legal and legislative actions that could affect categorical funding and noted a continuing uncertainty in state revenue timing.
"If we don't do this, we lose the CPI multiplier and we lose additional operating dollars," the finance presenter said during the presentation, urging prompt board action.
The board approved the tax-rate filing by voice vote.
What’s next: administrators will present any required budget adjustments at the June 22 board meeting, and the board will revisit revenue assumptions as state and local numbers clarify.
