Board adopts midyear budget amendment as enrollment falls; fund balance stays near target

The Mt. Pleasant City School District board voted Jan. 19 to adopt a midyear budget amendment that adjusts revenue and spending projections after a sharper-than-anticipated drop in student counts.

Ginger, the district finance director, told the board the blended pupil count is down about 89.1 full-time-equivalent students compared with the prior year, a decline that she said reduces revenue by about $895,000. Late state actions produced a slightly higher-than-expected foundation allowance ($10,050 per pupil, yielding roughly $165,000 more than originally budgeted) but changes in the Michigan Public School Employees Retirement System and related state aid produced an additional negative swing of about $619,000, Ginger said. After carryovers and tribal-grant adjustments, the district projects an ending fund balance of about $10.8 million, roughly 16.52% of expenditures.

"We are right along in target of where we predicted in June," Ginger said, describing the amendment as an update that reflects newly audited carryovers and salary and benefit adjustments. She said another budget revision will come in June as final figures arrive.

Board members praised the district's preventive maintenance investments and other efforts to manage long-term costs. "This year has been extremely challenging for projecting a budget," one board member said, thanking the finance team for navigating late state decisions.

The board approved the general-appropriation resolution by roll call. The record shows affirmative votes by Melissa Isaac Monpi, Wedine Pangle, Tim Odenkirk, Madison Chapman and Jessica Jernigan; the motion passed.

Ginger and trustees said they will continue to monitor the fiscal outlook as some grant streams decline and statewide enrollment trends evolve. The district noted it expects to present an updated revision at the regular June budget cycle.