Tecumseh Public Schools adopts 2026–27 budget despite revenue decline; trustees approve capital priorities

The Tecumseh Public Schools Board of Education on June 22 approved the district’s 2026–27 budget following a public hearing and discussion of revenue assumptions, staffing changes and capital needs.

Mr. Leonard, the district’s budget presenter, told trustees the district is proceeding without a final state aid bill and is using conservative estimates, including a projected drop of about 80 students that will reduce state revenue. He said the district is assuming a $250 increase in the foundation grant, moving the per‑pupil marker to $10,300, but that pupil count remains the single biggest driver of revenue because roughly 74.5% of the district’s total revenue is state aid.

Leonard said general fund revenues are projected to fall by about $1,146,590 year‑over‑year, driven largely by a fall in state receipts (from roughly $28.6 million to about $27.388 million). After accounting for one‑time revenues tied to specific expenses, he said unrestricted or discretionary dollars — funds available for general use — will decline by about $610,000 compared with the prior year.

To help balance the budget, the district factored in several retirements and position reductions. "We had about six or seven people retire this past year and all of them will be replaced except three," Leonard said, adding that no employees were being laid off and that staff who left were not always replaced because some roles proved to be above what was needed. He also noted the district’s retirement contribution rate will fall by roughly 2.4 percentage points, producing an estimated savings of more than $300,000.

On expenditures, Leonard described the budget as largely “status quo” with priority given to instruction: the district projects about 60.1% of spending will go directly to classroom instruction and added‑needs programs (special education, Title I, at‑risk, and vocational education). He also flagged maintenance and operations as a significant noninstructional cost because of aging buildings.

Despite the revenue decline, the board approved a budget showing a modest deficit of approximately $48,000 while maintaining a fund balance near 9%, above the 5% early‑warning threshold often used by the state. Leonard said auditors completed preliminary work and the district expects clearer year‑end figures by mid‑July.

The budget vote was unanimous on a roll call: Trustees Martinez, Simpson, McGee, Lewis, Davis and the board chair voted to approve the 2026–27 budgets as presented.

The budget approval also preserves the district’s prioritized capital and sinking fund plan. Operations staff told trustees they are projecting about $10.5 million of work through 2028 across capital and sinking funds; staff emphasized prioritizing projects that keep buildings warm, safe and dry and taking advantage of grant funding (for example, for tennis courts) when available. Staff confirmed a $35,000 state grant to replace hydration stations and outlined summer projects including painting, flooring, network upgrades and 12 new BenQ smartboards for the high school.

The board concluded its action with directions for staff to proceed under the approved spending plan and to return with any additional details required as state aid or grant outcomes are finalized.