Board stalls on 2026–27 budget after divided roll call; approves final 2025–26 amendment

Midland Public Schools presented a proposed $106.5 million general operating budget for 2026–27 on June 15, detailing revenue estimates, projected expenditures and assumptions administrators said were conservative pending the state’s final school-aid figures.

Administration told the board that state FY27 school-aid amounts were not finalized and that their revenue projections—prepared using governor, House and Senate budget proposals available when staff locked numbers on June 9—should be treated as best estimates. Officials flagged that a 1% variance equals about $1.22 million and that audit adjustments will change final fund-balance figures.

The budget packet shows an enrollment estimate of 7,232 FTE for 2026–27 (a decline of 41 FTE from 2025–26), total projected general-fund revenue of roughly $106.5 million (about $7.3 million less than the June amendment), and personnel costs making up about 84.2% of expenditures. Administrators also budgeted step and lane salary movements and a 12% projected increase in medical premiums, and they reduced several nonpersonnel line items compared with earlier drafts.

Board members questioned categorical funding reductions, the district’s conservative approach to federal Title allocations (administration budgets at 85% of current Title I/II/IV levels pending final federal allocations), and how hold‑harmless calculations interact with the state’s $250 per‑pupil foundation increase. Administration explained the district’s hold‑harmless per-pupil amount now totals $122 and that the $250 foundation assumption flows through both state and local hold‑harmless mechanisms.

Before the vote on the 2026–27 budget, the board moved and approved the final 2025–26 budget amendment. That amendment—presented as the final revision with numbers locked on June 9—showed increased revenues (about $2.6 million, primarily from property taxes), decreased expenditures (roughly $1.2 million in reductions), and an estimated June 30, 2026 fund balance of about $31.9 million (26.7% of the general fund).

When the board took a roll-call on the 2026–27 adoption, votes were recorded as President Roush: yes; Trustee Blazy: yes; Trustee Craig: no; Trustee Horowitz: yes. Administration and counsel stated that formal budget adoption requires a majority of the full seven‑member board. With absences on record and the vote pattern, administration concluded the budget did not pass at this meeting and asked the board to continue discussion.

Following the failed adoption, trustees pressed for additional detail before reconvening: a clearer variance report comparing the April workshop figures to the current proposal, granular explanations for changes that emerged since the workshop, and further explanation of categorical impacts. Administration said it would provide more detailed variance and staffing information and offered individual briefings as well as a special board meeting on June 29 to revisit the budget prior to the statutory July 1 deadline.

Votes at a glance: the board approved the final 2025–26 budget amendment (item 5.2) by roll call (Roush, Blazy, Craig, Horowitz recorded as yes). The 2026–27 adoption vote (item 5.3) did not meet the full-board majority requirement and failed to pass; trustees agreed to reconvene with additional information.

The board’s next procedural step is a special meeting June 29 at 4 p.m. to examine requested details and consider reopening the 2026–27 adoption vote. Administrators emphasized that the figures are estimates until the state finalizes school-aid allocations and that the district’s amendment period and audit process will allow later adjustments.

Ending: The board left the record open for additional analysis and scheduled follow-up discussion to seek consensus and assure statutory compliance before the end of the month.